February 24, 2017: The best interviews and technology news highlights from the week are brought together in “Best of Bloomberg Technology,” a weekly long-form program, hosted by Bloomberg Technology’s Cory Johnson.
The show talks about Snapchat. My opinion on the Snapchat IPO is that there is no way Snapchat should be valued at $20 billion. Snap’s monetization model is nothing new. Basically Snap tries to get more eyeballs on their software that they can serve ads to. The problem I have with Snap is that it appeals to a younger, more self-centered and immature audience. These are precisely the types of consumers that don’t buy things. With the majority of Snap chat users being below the age of 18, advertisers on Snap chat will quickly realize that while their ads may get clicks, the type of people who click their Snap ads are not actually buying anything.