Credit: Shutterstock photoCompanies such as Apple (AAPL), Google (GOOG), Facebook (FB), and others didn't become hit sensations overnight. They were small ideas started by a few individuals that wound up changing the world as we know it after years and years of tweaking the model.
Companies like Snapchat, Uber, Lyft, Buzzfeed and Pinterest all have a chance to become some of the next household names for the 21st century, just as Apple, Google, Facebook and others before them.
Uber, and in particular Snapchat, are likely to go public before some of the others, given their business models are further along, as investors realize what they can be, not what they are. Some of these companies may get bought by larger competitors or wind up sizzling out, but after countless hours of research, investors have dubbed some of these names as the "next big thing," so it's worth paying closer attention as we head into 2016 and beyond.
Here's a look at five of the largest private technology companies worth keeping an eye on, both as they change the world, and potentially, your portfolio.
Private markets value Pinterest at a $5 billion valuation, and with good reason. The longer a user is on the site, the more active they get.
Pinterest is slowly rolling out buy buttons, allowing users to buy an item straight from the site, as opposed to going elsewhere, which may provide an enormous revenue stream for the company.
Pinterest recently partnered with Stripe, a mobile payments company, to provide those buyable pins.
Though the site is still largely lopsided, with 85% of the company's 80 million monthly active users being female, usage is soaring. According to a report from Pew Research Center, Pinterest now has 31% of all adults who access the Internet in the U.S., up from 15% in 2012.
Snapchat
Snapchat is poised to become the next hot messaging app, if it isn't already.
After having reportedly turned down a $3 billion offer from Facebook and a reported $4 billion from Google, CEO Evan Spiegel has convinced investors his company is worth $16 billion, with more potentially on the way.
Snapchat isn't generating much in revenue, with just $3 million from advertising and the company's Discover product seeing mixed results, but usage is growing like a weed.
In May, Spiegel said Snapchat has close to 100 million daily active users in developed countries, with 65% of them contributing to the platform.
For those worried about having a 25-year old being the CEO of a company that may soon be public, consider this: he wrote a lengthy email detailing his thoughts on the Federal Reserve's monetary policy actions and how that's helping prop up asset prices. Not bad for someone who just became legally allowed to rent a car.
Uber
Uber is well on its way to becoming the next $100 billion company from Silicon Valley.
It recently raised money valuing the company at $51 billion, making it the fastest company to reach that mark ever, surpassing Facebook. Uber, led by CEO Travis Kalanick, allows users to hail a cab straight from their phones, using either UberX, UberBlack, UberSUV or a traditional taxi, with UberTaxi.
Founded in 2009, Uber is in more than 200 cities around the world, and appears poised to rapidly change the auto industry, as it works on autonomous vehicles. The company is expanding its offerings, having recently launched UberEATS in New York, a food delivery service. The company has experimented with delivering products from time to time, as it seeks to become more of a logistics company, a la UPS (UPS) or FedEx (FDX), than just a taxi alternative.
In the past, Uber has held special events, including deliveries of ice cream, medicine, cats, Christmas trees and more.
Lyft
If Uber is worth nearly $50 billion, its competitor Lyft may be worth more than the $2.5 billion it's currently valued at.
At least that's the reasoning of famed investor, Carl Icahn, who invested $100 million in the ride sharing service in May. Other investors include venture capital firm Andreessen Horowitz and and Chinese e-commerce giant, Alibaba (BABA).
Much like its larger competitor Uber, Lyft is a ride-sharing app designed to make it easier for people to get places.
The company's CEO is Logan Green, who helped found the company in 2012. It currently operates in around 65 U.S. cities, with plans to keep expanding both domestically and across the globe.
Buzzfeed
What was once a website known for its lists about cute cats and things your mom says in a text that would embarrass you has become one of the dominant news organizations in recent memory.
Buzzfeed, led by Jonas Peretti is more than just cats -- it's a site built on advertising technology that knows its user base and caters to them, keeping people highly engaged. The company is heavily expanding its editorial team, moving into areas such as video and eventually TV, as it seeks to become the predominant place for news.
Buzzfeed recently received a $200 million investment from NBCUniversal, valuing the company at $1.5 billion, almost as much as The New York Times (NYT).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
