Disappearing messaging app Snapchat's parent company Snap Inc. announced on Thursday, in an S-1 filing that it plans to go public in March, under the ticker "SNAP" on the New York Stock Exchange.

In the IPO filing, Snap highlighted the company's impressive sales growth rate. In 2016, Snap's revenue skyrocketed to $404.5 million from the $59 million it made in 2015.

"This is a company that's seeing its revenue grow exponentially, you know six times growth year over year this year. Looking to double again potentially next year, according to some forecasts. This is a company that is a very small company relative to where Facebook (FB) was or Alibaba (BABA) was, other high-profile tech IPOs. So this is a company investors are going to have to believe in the long term growth of the platform," Bloomberg Intelligence's Paul Sweeney said on Friday's Bloomberg Daybreak: Americas.

Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB? Learn more now.

One of the key metrics Snap advertises is its daily average users, which anchor David Westin pointed out is actually going down. He asked Sweeney if this is a more difficult time to enter the public market.

"The growth rate year over year is still growing, but it's slowing, the growth rate is definitely slowing here," Sweeney noted. "The story for Snap is not going to be one that we've seen with some of the other companies like Facebook and even Twitter (TWTR) , which is a rapidly growing user base."

Snap's story is more about "monetizing the existing user," Sweeney explained. The users' growth story will still be good, but what it is really about is that Snap's users will be the most attractive to advertisers because of the younger user base.

Snap is looking to raise about $3 billion, but Sweeney actually believes it will be closer to $4 billion.

The average users goes on Snapchat about 18 times a day, spending at least 30 minutes a day on the platform. What Snap is really going to try and sell to investors is the user engagement, which is something of value to the advertisers.

(Separately, Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS see all of Cramer's holdings with a free trial.) 

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