SNAP Up 2% After Report of Google Offer

Business Insider Source

I am planning a more in-depth stock report later this week but this article caught my eye.

If the report is accurate (and I have every reason to believe Heath is continuing his trend of precise Valley reporting) then it shows that Google is still interested in the social media game and might be looking to use Snapchat as the vehicle of entry. With more than $94Bn in cash on hand and a lack of viable (Google+ doesn’t count) social media products this would be a sensible decision for GOOG.

SNAP, on the other hand, has a growing user base and a strong technology backing their product. If they’re hesitant to sell it’s because they feel that their current valuation isn’t appropriate. I’ve seen some crazy numbers out there for Snapchat profitability and I think revenues of $2Bn by early 2018 isn’t out of the question. If that’s the case, then Spiegel will certainly feel vindicated for not exiting now.

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