Tag Archives: Wall Street

Snapchat raises $3.4 billion in its initial public offering

Commentary

Despite experiencing slow user growth and a net loss of $514.6 million in 2016, Snap, the maker of popular messaging app Snapchat, has raised $3.4 billion in its initial public offering at $17 per share, clinching a reported valuation of $24 billion. The company’s stock continued to climb even though it has yet to receive a single “buy” rating from Wall Street analysts. So why is Snapchat so valuable? Goldman Sachs estimate that the company could reach $2 billion in revenue in 2018, with a projected daily average users of 221 million, a 40% growth from 158 million in 2016. The company indicated that they expect the bulk of the revenue to come from advertising as well as from the sales of their new product, the Snapchat Spectacles, which can record snippets of video that are automatically stored to the user’s Snapchat Memories, a feature that saves snaps, stories and locked content.

Should we worry about the US government shutdown?

Commentary

Should we worry about the US government shutdown?

The United States federal government partial shutdown began last October 1, 2013 and will continue for an indefinite period until a consensus is reached between the Republican-controlled House of Representatives and the Democrat-controlled Senate. The main issue is the Republican’s opposition of the Affordable Care Act or better known as Obamacare, which was signed into law in 2010. On the shutdown, the Republicans, influenced by its ultra-conservative Tea Party members, demanded that the Senate agree to delay implementation of Obamacare law in exchange for passing a bill to fund the government and keep it running. The Senate opposed the bill and the money to keep the government open ran out on midnight.

How will this affect the economy? According to analysts, the effect of the shutdown will depend on how long it will continue. The thousands of furloughed federal government workers will feel the immediate impact. If the shutdown lasts for several weeks, consumers, businesses, and investors could think twice about spending their money and this could put a dent on the already struggling economy. Long-term shutdown could have a huge impact on Wall Street as markets depend on supply and demand and political stability. And if Wall Street falls, markets all over the world could suffer as well and this could have a devastating effect on global economy.