Adam Przezdziek / Flickr Creative Commons

Snap reportedly will seek a valuation of $20 billion or more when it goes public in March. But how will it justify such a lofty number, especially when it when compared to Facebook's user growth metrics?

Here's the answer from one Snap investor, who spoke to Axios on background: It's all about quality users.

  • Look at geography: At least 40%, or 60 million, of Snapchat's daily active users are in the U.S. and Canada, with another 50 million in Europe. In CEO Evan Spiegel's eyes, those are the users that translate into the big revenues from ads and e-commerce.
  • Snapchat also pays particular attention to how much time users spend on the app per day, and even per hour. In turn, users who are hooked on the app makes for a great pitch to advertisers.

Facebook was profitable at the time of its IPO, but another Snap investor says that, in the absence of earnings, the key is to prove a predictable business model and consistently hit quarterly numbers. Or, put another way, hit profitability within the time frame you say you're going to hit profitability.

Counterpoint: Of course, not everyone in the Valley is so bullish on Snap—some investors don't think the math adds up at all, as Axios's Dan Primack wrote today.

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Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 20,739,537 — Total deaths: 751,910— Total recoveries: 12,895,242Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 5,242,184 — Total deaths: 166,971 — Total recoveries: 1,755,225 — Total tests: 64,612,034Map.
  3. Politics: House Democrats to investigate scientist leading "Operation Warp Speed" vaccine projectMcConnell announces Senate will not hold votes until Sept. 8 unless stimulus deal is reached.
  4. 2020: Biden calls for 3-month national mask mandateBiden and Harris to receive coronavirus briefings 4 times a week.
  5. States: Georgia Gov. Brian Kemp to drop lawsuit over Atlanta's mask mandate.
  6. Business: Why the CARES Act makes 2020 the best year for companies to lose money.
  7. Public health: Fauci's guidance on pre-vaccine coronavirus treatments Cases are falling, but don't get too comfortable.

Fauci's guidance on pre-vaccine coronavirus treatments

Illustration: Aïda Amer/Axios

Antibody drugs and various medicine cocktails against the coronavirus are progressing and may provide some relief before vaccines.

The big picture: Everyone wants to know how and when they can return to "normal" life, as vaccines are not expected to be ready for most Americans for at least a year. Two therapies are known to be helpful, and more could be announced by late September, NIAID Director Anthony Fauci tells Axios.

3 hours ago - World

Behind the scenes: How the Israel-UAE deal came together

Trump, Kushner and Netanyahu (L-R). Photo: Kobi Gideon/GPO via Getty

The breakthrough in talks between the U.S., Israel and UAE on a normalization deal came two months ago, White House officials tell me.

Behind the scenes: Talks had been ongoing for more than a year, but they gained new urgency ahead of Israeli Prime Minister Benjamin Netanyahu's July 1 deadline to move ahead on West Bank annexations.