The Biggest Tech IPO Since Facebook
A few weeks ago, I was on an exciting phone call with Joseph Hogue, Chief Investment Strategist for StreetAuthority’s newest premium newsletter, Pre-IPO Millionaire. The call was regarding his latest project — and believe me when I say, it’s something that should have every investor excited about what’s in store.
I’ll get to the details of that call in a moment, but first, allow me to recap…
Joseph is a research analyst who has written for StreetAuthority for years. He’s also a respected expert in the burgeoning field of pre-IPO investing — that is, investing in “startup”-stage companies before they go public. These are the kinds of deals that have delivered incredible gains to wealthy investors in companies like Facebook and Twitter before they went public. We’re talking about seriously innovative companies and potentially life-changing opportunities for investors here.
Thanks to the recent loosening of regulations that allow practically anyone to invest in these companies, we quickly saw an opportunity to partner with Joseph and educate the public about this exciting new way of investing.
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Now, if you’ve been following along with StreetAuthority’s Pre-IPO coverage for a while, then you know that we think investing in pre-IPO companies is going to be the next great frontier for investing. Those who get in on the early stages armed with the proper knowledge and fortitude stand to make a killing.
To understand the potential returns investing in pre-IPO companies can bring, you need look no further than the news that broke last Thursday. In case you missed it, the parent company of social media darling Snapchat filed the necessary paperwork for an initial public offering (IPO).
Possibly The Biggest IPO Of The Year…
If you’re not familiar with the popular app, that’s OK. It’s basically a platform that allows you to use your camera to send pictures or short videos (aka “snaps”) to your friends or the public at large, along with a host of animations and effects that allow the user to enhance their image or story. Then, once a friend views the snap, it will disappear. You should also know that the app is wildly popular, with 158 million daily active users.
#-ad_banner-#According to MarketWatch, the company reported revenue of $404.5 million last year, up from $58.7 million last year. Snapchat is still unprofitable, reporting a net loss of $514 million last year, but that’s fairly typical for young, growing tech companies that need to spend money to grow. But the ramp for profitability is there.
The Washington Post reports that Snapchat makes $1.05 off each user per quarter. Facebook, in contrast, reported $4.83 in its most recent annual earnings report. Still, as the Post points out, Snapchat is only five years old and is growing this important figure each quarter.
Like Facebook, Snapchat was once thought of as an app strictly understood and used by the “under-25” crowd. But it’s becoming increasingly popular with older, smartphone-savvy users. (The company reports that users older than 25 visit Snapchat about 12 times and use it for about 20 minutes each day. It also says more than half of new daily users in the U.S. are over 25.)
The similarities to Facebook in this case are striking: A social media company that is rapidly growing its user base, overcoming public assumptions, monetizing users through advertising.
And look what happened after Facebook went public in 2012… After stumbling out of the gate, debuting in the mid-$40s, Facebook’s shares now trade hands for more than $130.
Mark my words, if things go according to plan, Snapchat could be one of the most successful IPOs we see all year. The company simply needs to continue growing its user base, and make sure users are spending enough time on the app to ensure its advertisers are happy.
And no matter how the IPO is received by the public, there are going to be stories over the next few months about the big paydays reaped by company insiders and those who bought a stake in the company before it went public. You heard it here first, people.
An Offer You Won’t Want To Miss
Back to the phone call I mentioned earlier. Joseph recently phoned in to StreetAuthority headquarters here in Austin, TX to announce that he was putting the finishing touches on his latest book project.
This is big stuff. Joseph has written a number of investing books, and he’s known as one of the foremost experts in pre-IPO investing. But this latest book promises to be his definitive work on pre-IPO investing. On the phone, Joseph promised to reveal every critical secret he’s learned about this space.
It’s called: Investing In The Next Big Thing: How To Invest In Startups Like An Angel Investor.
I was lucky enough to be able to secure an advance draft copy of the book. And as I’m writing this now, I can firmly say that it hasn’t disappointed one bit.
Now here’s where it gets exciting for you… We here at StreetAuthority want to make sure each and every investor who’s interested in this book is able to get a copy. So here’s what we’re going to do…
We’ve arranged with Joseph for StreetAuthority readers to sign up to get a copy of Joseph’s book for free. Here’s just a peek at the kinds of insights you’ll get from the book:
— The one question I always ask to be sure an entrepreneur is focused on making money for investors — and not just himself (page 79)
— Five things you need to look for in a startup to weed out a losing idea before wasting your time or money on it (page 54)
— Three different ways to value every deal — so you get a clear view of your true upside (page 88)
— A startup investing strategy that puts your money in only the safest deals and avoids chasing pie-in-the-sky long shots (page 111).
That’s just a taste. And as a special offer for signing up for a free copy, you’ll get your hands on a Special Edition of Investing in the Next Big Thing that includes an exclusive bonus chapter revealing three startups that Joseph is telling his clients to buy right now. Simply put, they’re three of the best bets for an explosive payoff that Joseph has seen out of the 289 firms he’s researched and reviewed in the past three years.
This Special Edition won’t be available on Amazon.com or anywhere else. It will only be available through StreetAuthority. To receive your copy of the book, go here and tell us where to send it.