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Now for the latest financial news with Sally | :00:00. | :00:00. | |
Investors scramble for Snapchat, in the biggest tech flotation | :00:00. | :00:23. | |
But is the app a cash cow or just a craze? | :00:24. | :00:27. | |
the boss tells us his plans for the internet TV giant | :00:28. | :00:32. | |
as it heads towards 100 million users. | :00:33. | :00:40. | |
Also in the programme: Up up and away - | :00:41. | :00:46. | |
the US markets blast through previous record highs, | :00:47. | :00:48. | |
the global rally is continuing in Asia. | :00:49. | :00:52. | |
We start on Wall Street where investors are gearing up | :00:53. | :01:02. | |
for what could be the biggest and certainly the most hyped | :01:03. | :01:05. | |
technology flotation since Twitter in back 2013 - | :01:06. | :01:07. | |
In a few hours time shares in SNAP- the owner of photo messaging app | :01:08. | :01:14. | |
Snapchat - will begin trading on the New York Stock Exchange. | :01:15. | :01:17. | |
The big question - will it end up a stock market giant | :01:18. | :01:20. | |
like Facebook or, like Twitter, a bit of a flop? | :01:21. | :01:23. | |
The flotation has been hugely oversubscribed - | :01:24. | :01:26. | |
there were as many as ten orders for every share. | :01:27. | :01:29. | |
That's allowed Snapchat to up the price. | :01:30. | :01:32. | |
Late on Wednesday it priced its shares at $17 - | :01:33. | :01:35. | |
above the $14-to-$16 range it had previously indicated. | :01:36. | :01:40. | |
That will give the company an opening valuation of $24 billion. | :01:41. | :01:44. | |
More than twice as much as Twitter at its current share price. | :01:45. | :01:48. | |
That's despite a couple of major worries - | :01:49. | :01:51. | |
Firstly, Snapchat has yet to turn a profit. | :01:52. | :01:55. | |
In fact it lost over half a billion dollars last year alone. | :01:56. | :02:01. | |
Plus shareholders who buy in will not have any voting rights. | :02:02. | :02:06. | |
The founders of the company will retain complete control | :02:07. | :02:08. | |
They are incredibly young and, as of later today, | :02:09. | :02:14. | |
Evan Spiegel and Bobby Murphy - both in their 20s - | :02:15. | :02:21. | |
will be worth around $4 billion each. | :02:22. | :02:26. | |
From New York, here's Samira Hussain. | :02:27. | :02:32. | |
In just five years, Snapchat has gone from a little at created by a | :02:33. | :02:42. | |
couple of college kids to a virtual Giant with 160 million daily | :02:43. | :02:47. | |
activities users. On Thursday it will start trading here on the New | :02:48. | :02:53. | |
York stock exchanges. Why are investors so excited about a company | :02:54. | :02:59. | |
valued at $20 billion but has yet to make a profit? They are hoping it | :03:00. | :03:04. | |
will see the same success as companies like Google or Facebook. | :03:05. | :03:10. | |
Of course, the worry is that they will end up looking more like | :03:11. | :03:14. | |
Twitter, companies that came with a lot of hype but not much chance. It | :03:15. | :03:21. | |
is a new breed of social networking. It is not like Facebook where there | :03:22. | :03:27. | |
is a big public wall with your family on there, it is not like | :03:28. | :03:32. | |
Twitter broadcasting to the whole world. If you are of a child | :03:33. | :03:37. | |
completely at the did to this product you might very well see it | :03:38. | :03:43. | |
has a future. I did not use it. I have it but I do not use it. I use | :03:44. | :03:51. | |
it every day. My kids use it. I use it all the time. I do not know what | :03:52. | :03:59. | |
it is and I did not use it. Snapchat is the talk of Wall Street even | :04:00. | :04:04. | |
though it is geared towards teenagers but that is the key | :04:05. | :04:10. | |
towards its success. If it cannot attract its young users, it risks | :04:11. | :04:17. | |
becoming just another tech company that group two big too fast. | :04:18. | :04:21. | |
James Erskine is Director of the social media consultancy- | :04:22. | :04:23. | |
We have arrived after so much hype. There are questions about this | :04:24. | :04:39. | |
company and its future. What is your take? We will be talking about this | :04:40. | :04:45. | |
company as a great success? It is closer to Facebook than Twitter- 160 | :04:46. | :04:54. | |
million users daily sounds like an awful lot. The Rat stakeholders, the | :04:55. | :05:01. | |
users, they know it is a photo and video sharing social network and | :05:02. | :05:08. | |
that is exciting. A bit of disconnect between them and the | :05:09. | :05:13. | |
investors. Investors are kind of uninsured. It was rendered as a | :05:14. | :05:21. | |
camera company in 2016. That to me sounds quite this are, at the moment | :05:22. | :05:27. | |
it is saying they have more stuff coming and new toys coming in the | :05:28. | :05:34. | |
future? Similar perhaps the Google glasses, real-world products hard to | :05:35. | :05:41. | |
get hold of... You sense that there are other things coming soon which | :05:42. | :05:46. | |
will plan into a master, eager plan, perhaps. It does have advertising on | :05:47. | :05:54. | |
the app. And is generating much income? About 90% generated comes | :05:55. | :06:06. | |
from advertising. As part of your business, we look at different | :06:07. | :06:09. | |
influences and how they engaged with different social networks and what | :06:10. | :06:14. | |
Snapchat needs is to look at its products, it needs scalability and | :06:15. | :06:22. | |
bigger brands. It needs to sort of shift in the way Facebook has in | :06:23. | :06:28. | |
terms of getting many in from the advertisers. It has the people who | :06:29. | :06:33. | |
use it, and it is the people advertisers want to grab hold of - | :06:34. | :06:41. | |
the millennial is. My thought is it is about content. What content is on | :06:42. | :06:47. | |
Snapchat that uses cannot find elsewhere. Fascinating. Thank you | :06:48. | :06:54. | |
for coming in this morning and sharing your thoughts on Snapchat. | :06:55. | :06:57. | |
The big event takes place later today and we will be all over it and | :06:58. | :07:03. | |
then it will disappear... No, it won't. | :07:04. | :07:05. | |
the internet TV streaming service has been growing fast | :07:06. | :07:09. | |
and is on track to hit 100 million subscribers. | :07:10. | :07:11. | |
But it's facing growing competition from other companies | :07:12. | :07:14. | |
Co-founder and CEO Reed Hastings has been speaking | :07:15. | :07:18. | |
to our Technology Correspondent Rory Cellan Jones | :07:19. | :07:20. | |
at the Mobile World congress which is under way in Barcelona. | :07:21. | :07:24. | |
It is just starting, we are getting more viewing on mobile and doing | :07:25. | :07:33. | |
well on television but the key thing is being able to binge view and | :07:34. | :07:40. | |
watch whenever you want. You need to keep adding these subscriber | :07:41. | :07:44. | |
numbers, how will you continue because there must be a limit to the | :07:45. | :07:49. | |
number of people who want to pay that much monthly? You chip have | :07:50. | :07:54. | |
just announced they are doing a billion hours of viewing a day so | :07:55. | :07:59. | |
considerably more than Netflix so there is lots of room to grow. But | :08:00. | :08:08. | |
that is for free, YouTube. We will continue to invest in a great shows | :08:09. | :08:12. | |
and people who will want to subscribe now 100 billion paying | :08:13. | :08:20. | |
members. The big issue has been neutrality of net. You do not want | :08:21. | :08:28. | |
that to be charged from other kinds of traffic. What are the prospects | :08:29. | :08:33. | |
now that we have a Trump administration that is not seem | :08:34. | :08:42. | |
friendly to that? Net neutrality has taken around the world as an | :08:43. | :08:46. | |
assumption about the way the Internet should work. There are a | :08:47. | :08:51. | |
lot of countries that do not have a law but we still operate very much | :08:52. | :08:57. | |
along those principles. What would your message to Trump the? I think | :08:58. | :09:04. | |
net neutrality is important so none of the voices are censored and there | :09:05. | :09:10. | |
is inequality around. Facebook seems interested in doing a lot more | :09:11. | :09:15. | |
video. That would be quite a danger to you? And there is YouTube read | :09:16. | :09:23. | |
which is a subscription service, potentially Apple, Amazon on, a lot | :09:24. | :09:29. | |
of competition, rate for the consumer and challenging Fort | :09:30. | :09:35. | |
Netflix but there is also a lot of room to grow. But we challenge and | :09:36. | :09:41. | |
also excitement. The Dow Jones closes above 21,000. | :09:42. | :10:00. | |
It makes this the fastest rise since 1999. Shares in banks have been | :10:01. | :10:05. | |
climbing since President Trump's election victory. He has promised to | :10:06. | :10:09. | |
cut regulation on Wall Street as well as reducing taxes and | :10:10. | :10:18. | |
implementing infrastructure programmes. You can see the price of | :10:19. | :10:26. | |
oil has fallen as well. A weaker yen is also helping. Rates rise possible | :10:27. | :10:36. | |
in March and many believe it is feeling these numbers. When will it | :10:37. | :10:40. | |
end? We will see you soon. MPs say that the government's | :10:41. | :10:49. | |
delayed 25-year plan for improving England's | :10:50. | :10:51. | |
natural spaces should The government promised | :10:52. | :10:52. | |
in its manifesto that it would restore damaged | :10:53. | :10:56. | |
wildlife habitats and leave them in a better | :10:57. | :10:58. | |
state than before, but MPs want to see how | :10:59. | :11:01. | |
they propose to do it. | :11:02. | :11:05. |