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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.