Snap, the company behind mobile-phone messaging app Snapchat, beloved of teenagers and young adults, plans a $25bn initial public offering in March. And while Snapchat is widely seen as a way to send explicit photos, “no one can accuse Snap of being a cheap thrill”, says the Financial Times’ Lex column.
Facebook, which has 1.2 billion users and revenues of $27bn, is valued at 14 times sales. Twitter, with 150 million users and revenue of $3bn, trades on four times sales. Snap has 168 million users and revenues of $400m, which would put it [...]