Up to date week Snap, the parent company behind the Snapchat multimedia earnest messaging smartphone app, announced that it intends to float on one of the US stock barters.
Although it has yet to make a profit since it was founded in September 2011, Hasty is valued at a staggering $25billion (£20billion), which is sundry than Sainsbury’s and Tesco combined.
Snap makes its money in all respects advertising, such as sponsoring the lenses and filters used to augment the photos woman send using Snapchat or by screening short adverts between videos.
Any investor who takes shares in the Snap flotation is probably throwing money away.
The compact admits in its pre-flotation filings that “we have incurred operating disadvantages in the past, expect to incur operating losses in the future and may never reach or maintain profitability”.
If that is not a financial health warning, I do not know what is.
For old cynics peer me, the sense of déjà vu is palpable, as market conditions increasingly resemble the 1990s technology spume days.
Once again we have a scenario where economies are ripening, stock markets are rising and unprofitable technology outfits are floating at mystifying valuations.
We discern what happened last time and it is inevitably going to happen again. You bear been warned.