Mortgage Blog

Should Apple buy Fannie Mae and Freddie Mac? An Snapchat's market CAP
March 3rd, 2017 10:10 AM
I got the following following a newsletter I subscribed:


Snap ? commonly known as Snapchat ? went public this week. As the weekend approached its market capitalization (shares multiplied by stock price) was $32.9 billion. In case you?re keeping tabs (and we are), a day earlier, on Thursday, its market cap was $28.3 billion, the same (combined) market cap of Fannie Mae and Freddie Mac, as calculated by the value of their common shares?

For those of you who don?t have teenagers, you might be surprised to learn that Snap is an ?app? company that exists so users can share silly photos and videos of themselves ? and then those images instantly disappear. What?s so interesting about Snap is that in its IPO documents the company warns that it may never make a profit. That?s correct: a social media company that may never make a nickel is now worth more than Fannie and Freddie, which ended 2016 with a combined profit of $20.2 billion?

Not too long ago, one GSE watcher even suggested to us that computer/cell phone giant Apple might want to consider buying the GSEs ? if only Congress would allow them to be sold. Apple has plenty of cash on its balance sheet ? about $220 billion worth. Think of the cross-sell opportunities. All those homes that might need the ?Apple TV.?

Stranger things have happened ? like Snap going public?. And it may never make a profit.

Posted in:General
Posted by Eric Fang on March 3rd, 2017 10:10 AMPost a Comment

Subscribe to this blog



My Favorite Blogs:

Sites That Link to This Blog: