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A Trump rally and 'genius' marketing prime Snapchat for a big IPO, investors say

A Trump rally and 'genius' marketing prime Snapchat for a big IPO, investors say

Though at least one tech company has delayed its post-election IPO, Snapchat shouldn't worry, one investor said.

"It's pretty early since the election, and things happen slowly in the private market," said Jeremy Liew, a partner at Lightspeed Venture Partners who invests in consumer technology start-ups, told CNBC's " Squawk Alley " on Wednesday.

"But we have seen some terrific IPOs, you know, companies like Nutanix (NASDAQ: NTNX) and Twilio (NYSE: TWLO) and many others that have all done very well so far this year. I think the markets continue to do well. I'm hopeful we'll see more companies go public this year."

Snapchat's parent company, Snap, confidentially filed for its IPO, sources told CNBC last week . Snap filed for its offering before the presidential election, according to The Wall Street Journal.

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The $20 billion to $25 billion IPO, expected as soon as March, would make it one of the biggest technology offerings in recent years, when IPOs have been few and far between. According to Renaissance Capital, the number of IPO filings have fallen nearly 47 percent compared with 2015, a year where IPOs also dropped dramatically.

Renaissance Capital's IPO ETF, which includes companies that went public in the past two years, has risen about 3 percent so far this month, as stock markets hit record highs. The firm estimates that Donald Trump 's policy proposal to lower the corporate tax rate may benefit small- and mid-cap public offerings.

Still, while Trump's victory helped stocks this month, at least one tech company may be delaying going public. AppDynamics, a unicorn big data start-up, may push its offering to next year amid post-election uncertainty, sources told the Journal.

But Roger McNamee, co-founder of technology investment firm Elevation Partners, said Snapchat has a magical way of capturing the zeigeist that's unlike any other tech company.

Known for its virally popular ephemeral messaging, Snapchat has stepped up its marketing ahead of the holidays, setting up pop-up vending machines that dispense special glasses, Spectacles. McNamee called Spectacles a "genius marketing campaign."

"What the stock is worth is anybody's guess," McNamee told "Squawk Alley" earlier this week. "But it is really clear to me that they're going to get everybody's attention. And when they do the IPO, I suspect it will be well-subscribed."

— Reuters contributed to this report.



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