Last Thursday, March 2, shares of Snapchat parent Snap Inc. (SNAP) went public at $17, well above the $14-$16 initial public offering range. The shares hit a high of $29.44 on Friday morning before closing the week out at $27.09. That quick gain of just under 60 percent was great for investors that were involved with the IPO, but it wasn't quite the same for investors that entered into SNAP shares after the shares started trading on Thursday morning. With SNAP shares now trading in the secondary market and the buildup of the IPO now behind us, the question to us is are SNAP shares really worth the current $34.7 billion in market capitalization? At that market valuation, the shares are trading at about 37 times EMarketer's estimate for Snap's 2017 advertising sales.
Twitter CEO Jack Dorsey (seen above on November 21, 2016) says there are similarities between Trump's first month as president and the weeks leading up to the Arab Spring The United States may be going through its own version of the Arab Spring, according to the head of a social media giant. Americans have taken to Twitter to air their political grievances during President Donald Trump's first month in office similarly to how people in the Middle East did so during the Arab Spring and Iran's Green Revolution, according to Twitter CEO Jack Dorsey. Dorsey says that the current American political discourse online resembles'a lot of the same patterns we've seen during the Iranian Green Revolution and the Arab Spring,' according to Fortune Magazine. 'It was stunning to see how Twitter was being used to have a conversation about the government, with the government,' Dorsey told a tech conference in San Francisco on Wednesday. He said that Twitter has not traditionally been used as a means to further political discussion.
Baidu has announced a strategic investment in Xinchao Media, a media company that specializes in elevator ads, according to the company's post on Bai Jiahao (in Chinese). While Baidu did not disclose the size of the new investment, other reports suggest Xinchao Media's latest financing round led by Baidu was totaled RMB 2.1 billion and Huaxing Capital was the exclusive financial advisor on the deal. Forming a strategic partnership with Xinchao Media is part of Baidu's offline advertising push. "In the age of AI, market environment along with the development of technology is pushing and renewing the vigor of offline advertising," the Chinese search engine giant said in the post. On one hand, the growth of mobile devices and the growth of online traffic are slowing.
SAN FRANCISCO -- Facebook now has 4 million advertisers, adding to the ranks of small businesses that are trying to reach customers on the giant social network. "We are really excited to do the announcement that we have four million advertisers. I think the story is basically about the movement to mobile," Facebook's chief operating officer Sheryl Sandberg told USA TODAY. Facebook has identified small businesses as one of its biggest opportunities. Mobile has accelerated adoption among small businesses, especially overseas.
IN BUILDING the world's largest advertising company over the past 30 years, Sir Martin Sorrell, chief executive of WPP, has weathered two recessions and survived a global financial crisis. His firm nearly went bankrupt in the early 1990s. Now he must make his hardest advertising pitch yet, to convince the corporate world that image-making agencies like his are not dinosaurs on the brink of extinction. The world's advertising giants are struggling to adapt to a landscape suddenly dominated by the duopoly of Google and Facebook. Some of their biggest clients, such as Procter & Gamble (P&G) and Unilever, are also being disrupted, in their case by smaller online brands and by Amazon.