In the technology space, high profile acquisitions such as Facebook's (NASDAQ:FB) acquisition of Instagram stand as great examples of the ever-present potential for consolidation in a sector which has continued to grow at breakneck speed in recent years.
Anticipating where synergies align and which companies may be up for sale is a difficult task; however, recent reports suggesting the partnership between Snap Inc. (NASDAQ:SNAP) and Amazon.com, Inc. (NASDAQ:AMZN) may represent more than just an image-based shopping agreement has many wondering whether shares of Snap are truly valued correctly, given the current tech landscape of growth and consolidation.
Companies like Amazon have continuously been on the search for bolt-on acquisitions which enhance current online offerings, and in that regard, Snap has a lot to offer for any company considering an offer.
Snap's shares have been on a rocky roller coaster ride, to say the least, since the company launched its initial public offering. Since March of 2007, shares have dipped from a high of around $30 to the company's current share price (at the time of writing) of less than $9 per share.
Companies like Snap certainly have their work cut out for them in the blue-chip social media space. Having a partner with deep pockets with the ability to invest capital into growing said business model could be an interesting option, for the company and for shareholders.
While I consider Snap to be a speculative play at this point in time, given the company's valuation today compared to its IPO valuation, suitors may be coming out of the woodwork in the near to medium-term.
Invest wisely, my friends.
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