Snapchat is a mobile application for instant messaging with the ability to attach photos and videos. The market capitalization is $21.11 billion, and the number of employees is 3 thousand people.*
|Expected yield, % per annum||25-27%|
|Volume of investments||1500 USD|
|Term of placement of the deposit||up to 22.03.2019|
|Protection of capital||80%|
|Direction of Underlying Asset Price Movement||on a price increase|
- Constant increase of the number of users. In early 2018, the number of active users of the messenger has amounted to 158 million, which is slightly lower than in May 2017, when the maximum number of active users reached 160 million, but in any case, these figures exceed even the figures of one of the world's most popular social networks - Twitter, with its audience of 140 million people.
- Investment attractiveness. Since its inception in 2010, the company has attracted private investments, amounting, according to various sources, to about $10 billion.
- Innovation. Snapchat is an example of an ideal messenger, whose functionality is subsequently used by competitors, in particular, Instagram last year copied and implemented almost all the functionality provided in Snapchat.
At the moment, the stock price of the company is approaching a strong resistance level of $ 16.5, from which a rebound should occur in the direction of $ 21.8, which will equal to a growth of 32%. In addition, a large-scale messenger redesign should take place in the second or third quarters of 2018, which will attract a large audience of new users, which in turn will encourage investors' optimism.
This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.
The product is dedicated specifically for conservative investors, where they can define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.
*according to the information from the company's website.
- Product with capital protection
- Minimal Investment amount 1500 USD
Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.
Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.
The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.
The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.
If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.
The parameters of the products are indicative and may vary depending on the market situation.
In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) + 0.65 (participation rate) * 60% (price change) = 119%
In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) = 80%
The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.Note:
The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.