Snap raised $2.3 billion at gigantic valuation of $34 billion after one day of trade

Snap Inc’s IPO valuation at $22 billion invokes speculation and debate. After a day of trading the value of the mother of Snapchat – that lost $500 million in 2016 – rose even to $34 billion. It would mean a revenue multiple of 84 as Snap’s sale was $404 million in 2016. Amazon, Netflix, Alphabet (Google) and Facebook are “only” trading at a revenue multiple range of 3-14. Snap has to invest the $2.3 billion fresh capital in its coffers wisely and with a huge return, but still then it’s hard to imagine how Snap can underpin it’s gigantic valuation.