What’s Snapchat Doing Now? Quietly Gathering Steam

Jacob Harper |

In November 2013 the wildly popular social media/massaging app Snapchat turned down a major buyout offer from Facebook Inc. (FB) , one to the tune of $3 billion. The snub engendered accusations of hubris on Snapchat’s part, often directed at the company’s brash, often flippant CEO, the 23-year-old Evan Spiegel for turning down a sure thing in the face of uncertainty.

In the time since, Facebook turned their attention to the larger, already-monetized WhatsApp, acquiring that company instead. And with little fanfare, Snapchat has gotten even bigger and better.

Snapchat’s transition from a Stanford class project to a (more than) $3 billion tech darling in less than three years is indicative of a brand experiencing nearly unprecedented stratospheric growth. It’s the kind of growth that seems, on the surface, simply impossible to maintain. But while it might have slowed a bit as of late, Snapchat is increasing its customer base significantly, especially among one of social media’s most coveted demographics: the tween set

A survey by Edison Research indicates that 43 percent of 12-14 year olds use Snapchat, as compared to just 36 percent for Twitter (TWTR) .While 50 percent of that age group uses Facebook’s Instagram, that app is slightly older, having launched in October 2010, with Snapchat dropping in July of 2011. Instagram as well has benefited from their newly-cemented relationship with parent company Facebook, who have pushed the photo-sharing app relentlessly since the April 2012 acquisition via intra-platform integration.

Of course, the lack of a major distribution push is the price Snapchat pays to stay indie. Snapchat as well has not been immune to the growing pains associated with a nascent tech giant, experiencing a major security breach on New Year’s Day that threatened to compromise the burgeoning popularity of the company.

But otherwise, Snapchat continues to rack up impressive growth in the youth market, and with a product that exists entirely on mobile, a fact which scores them major brownie points in the social media game. And for the time being, while Snapchat has encountered its share of issues and still hasn’t cashed out, they’re looking less and less like an acquisition target and more like a company that could one day be doing the acquiring themselves.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 118.91 0.96 0.81 22,424,475
TWTR Twitter Inc. 19.64 0.16 0.82 19,676,290
GAERF Grupo Aeroportr Cntro B n/a n/a n/a 0

Comments

Emerging Growth

Enertopia Corp

Enertopia Corp is engaged in the exploration of lithium in Nevada, USA. The Company's project includes Central Nevada Lithium Brine Projects.

Private Markets

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…