Snap Inc., the first tech IPO of 2017, is racing ahead at breakneck speed.
As recently as November, one sell-side analyst thought Snap’s coming out party could result in a whopping $45 billion valuation. As of Snap’s roadshows in London on Monday and in New York yesterday, Snap’s talked-down price range of $14-$16 values it somewhere between $16.2 and $18.5 billion.
That’s the wall it’s staring down – valuations have already tumbled since rumors of the company’s public offering began to surface.
But that’s not why Snap’s IPO will be a wreck.
Here’s why 2017’s first big IPO is going to be a disaster, and why what happens next will be crucial to the markets…
Right now, our market (in whatever terms you measure or define it) has a huge bid under it.
When traders refer to a “bid” under the market, they’re referring to buyers in the wings who are ready to buy something at the posted price or a slightly lower price.
Bidders in the wings can have orders to buy down with their brokers, poised at the ready on a trading platform, or even wait until they get a whim, watching for the right price or feeling to hit them.
What does this mean for the market as a whole? It will go a LOT higher.
It’s easy to make money if you see the big picture, if you can see which way the market is going. Let’s forget about individual stocks for now… there’s only so much success you can have in the stock market if you are unable to step back and see it for what it truly is.
In truth, the market’s been going up steadily since 2009. It will continue going up, and I can prove it by sharing what I understand of the big picture.
I’ll paint for you a stellar background, a clear middle ground, and a compelling foreground.
Here’s what you need to understand about the beauty of the market right now…