Why is Snapchat worth so much

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  • 1 Fast growth

    Snapchat usage has been growing so fast. According to a report, Snapchat usage grew 300% from the year 2013 to 2015. See why Facebook offered to buy Snapchat.

  • 2 Half of the teens use it

    Snapchat is very popular among teens. One in each two teens uses Snapchat. Many people assume that this will make Snapchat the desired platform for the future. See why do people like Snapchat.

  • 3 More than 100 million daily active users

    At the end of 2015, Snapchat reported that they have more than 100 million daily active users. Snapchat's fast growth is taking it closer to the large social networks such as Twitter and Instagram.

  • 4 The number one app among teens

    Surveys by Piper Jaffray and other firms show that Snapchat is the number one app among teens. Many teens prefer to use Snapchat for social networking over Facebook, Twitter and Instagram. See also why Snapchat turned down Facebook's offer.

  • 5 Snapchat users consume 10 billion videos a day

    In early 2016, Snapchat said that its users consume more than 10 billion videos a day. This fact made many investors believe that Snapchat has high money making potential.

  • 6 Estimated revenue for 2017 is $1 billion

    Snapchat is estimated to make $1 billion dollars in revenue in 2017 up from the 2016 estimate of $250 to $350 million. If the number is proven true, then a 20 billion valuation for Snapchat might be a logical number.

  • 7 Snapchat has close to 200 million users

    Many people believe that Snapchat now has close to 200 million users. Twitter, one of the largest social networks, has around 300 million users. Snapchat is thus becoming one of the very big players in the social networking market.

  • 8 A threat to major social networks

    Some analysts see Snapchat as a threat to current social networks, especially Facebook. With teens abandoning other social networks and using Snapchat, many analysts believe that Snapchat will replace those social networks. See Why teens don't like Facebook.

  • 9 Has great revenue potential

    Many analysts believe that once Snapchat uses the proper revenue generation model, it's going to generate a large amount of money that can justify the high valuation.

  • 10 It is popular in North America and Europe

    Snapchat is very popular in North America and Europre. The fact that the app is popular in rich markets makes its revenue generation potential much higher than ordinary apps. See why Snapchat started.

  • 11 It has very high engagment

    Snapchat is not only just a popular app, but it's also an engaging app. The high engagement shows that the app growth will be sustainable for some time.