NEW YORK (TheStreet) --Social media icon Snapchat's parent company Snap Inc. has confidentially filed for an initial public offering, sources told Bloomberg. The social media company will reportedly seek to raise $4 billion for its IPO, equating to a valuation of between a $25 billion and $35 billion.
"Snapchat is one of the darlings of what may be a fading universe of unicorns, and they want to get out there before the comps and the public market hit too hard," 55 Capital market strategist Max Wolff said on CNBC's "Closing Bell" Tuesday afternoon.
Snap has proven to be an extremely successful company, growing at "astronomical" rates, he noted. "Just under half of all millennials check in every single day."
Snap's push into the augmented and virtual reality space has equated to a significant amount of popularity among its users.
"On the other hand, they are looking for probably on the order of 20 times next year's top-line revenue and if you survey that landscape, there are not too many companies trading up there," Wolff noted.
That said, he believes the growth story to be "very much in place" regarding the prospects of this company.
"They are going to do at least 300% to 400% growth and they are just turning on half of their monetization probability, so you are deep into high triple digits for the next 24 months," Wolff said.