NEW YORK (TheStreet) --Social media icon Snapchat's parent company Snap Inc. has confidentially filed for an initial public offering, targeting a date in March, Bloomberg reported Tuesday, citing sources. Snap is eyeing a valuation between $20 billion and $25 billion.

"I think [with] Snapchat, that's a ridiculous number. Honestly, that is going to be half of Snapchat," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

Cramer argued that the social media company has the potential to carry a $40 billion valuation.

"On any given day, Snapchat reaches 41% of all 18 to 34-year-olds in the United States," according to the company's website.

"Now, there are some people who feel that Snapchat doesn't attract advertisers as much," Cramer noted.

However, because Snapchat reaches a key younger demographic for advertisers (18-49) that sentiment could change.

In fact, several companies post rave reviews on Snapchat's website, indicating how pleased they have been with advertising on the platform.

"Each time we partner with Snapchat on a specific campaign, they come with great insights, great creative solutions, and ultimately great measurable results," Coca-Cola (KO) Senior Vice President Emmanuel Seuge said.

"Snapchat is going to come in at $40 billion. I'm telling you that," Cramer reiterated.

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