Snap Inc, the owner of the most popular social media app “Snapchat, own ” reports that they are going to invest their $1 billion on Amazon.com. They are betting their money on using Amazon.com’s cloud services for the next five years. Apart from Amazon.com’s cloud services, Snap Inc has also been contracted with Google for 2$ billion for their Google Cloud Services.
Snap also may spend money in building infrastructure, they said on Thursday, during in an amendment to filing something related to its intended stock market debut in March.
Snap Inc. is looking to raise 3$ billion money, said in a statement by the company which filed its IPO registration about a week earlier. Snap could have their market valuation of at between $20 billion to $25 billion, which makes the Snap Inc. the most valued company in a US technology IPO since Facebook Inc.
Snapchat App relies mostly on Google Cloud Services for their hosting of major computing, bandwidth, and storage utility, said by the Venice, California-based Snap Inc.
Users from Outside of North America and Europe are the most concerned user base for the Snap Inc. Company, they added in the filing details. Also said that users from these two regions have slower and expensive cellular networks which eventually impact the limited use of its Snapchat App because the App requires large bandwidth internet connection. Means, users from these two countries are more interested in consuming their contents rather creating it, they added.
Snap Inc. also added in filing details that, due to fewer snaps and fewer chats means less number of notifications inviting friends back into the app, resulted in lower and more reduced daily use.
Snapchat was founded in 2012, as a free mobile app that allows the users to send photos instantly within seconds. Now Snapchat reportedly has over 100 million active users, which includes about 60 percent of user group between the age of 13 and 24, providing an attractive way for advertisers to reach out to their potential millennials.