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Mark Cuban Will Buy Snap On The IPO, If He Can: 'It Can Be A Big Company'

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Mark Cuban Will Buy Snap On The IPO, If He Can: 'It Can Be A Big Company'
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One of the hottest IPOs coming in 2017 has caught the attention of a pretty big name in the investment world.

Mark Cuban, who was once critical of Snap Inc regarding its privacy practices, has since had a change of heart. The parent company of Snapchat is planning to IPO on the New York Stock Exchange on March 2.

In an e-mail to Benzinga, Cuban said he's a fan of the company and he will buy shares on the IPO if he can get stock. The reason he states this is because a recent Fortune report mentioned the 200 million share IPO is oversubscribed at the $14-$16 range it plans to price at.

The report also noted investor traffic during its current IPO road show has been fairly strong, despite some concerns regarding maintaining user growth, cash burn and large future spending commitments.

Related Story: Gadfly's Shira Ovide Warns Snap Investors: Buying The IPO Is 'An Act Of Lunacy'

Elaborating on why he'd invest in Snap, Cuban said, "They have shown more than any other platform app they can refresh the user experiences with new features."

As for the concerns highlighted by media covering the road show, Cuban said, "It's smarter to go public now while they have revenue growth in front of them. Presumably they can use the cash to invest in making the app run on lower end phones which will expand their audience and expand revenue opportunities."

Cuban stated that if Snapchat can continue to invest in the app's user experience and consistently add new features, it can be a big company.

"There are challenges," Cuban concluded, "but I think their timing is good."

Posted-In: Long Ideas News IPOs Top Stories Exclusives Hot Tech Trading Ideas Best of Benzinga

 

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