An investment bank firm in Minneapolis has hired you. Your first job is to try to forecast the financial performance of Snap Inc. (SNAP) at the end of this year (12/31/2017) and the 12-month target sales level (3/31/2-18).
a) Identify SNAP industry (SIC code) and its main competitors.
b) Using a combination of fundamental analysis and the Yardstick method explain in class, what is the revenue level you forecast for the two dates mentioned above. Provide revenue level in (1) USD and (2) revenue per active user [Obviously, you need to forecast the number of active users]. What is the growth rate in sales relative to the most recent sales information you found available. Summarize your reasoning in less than one page.
You can deliver the answer to this question either in Excel or in a Word document. Make sure you explain your analysis in words, including all assumptions you are using.