It’s IPO season once again, and Pavel Durov, the founder of the messaging app Telegram, is joining the conversation. In a recent interview with the Financial Times, the British financial newspaper, Durov provided fresh insights into the business of the world’s fourth-largest messaging app (trailing behind WhatsApp, WeChat, and Messenger). According to Durov, the company is poised to achieve profitability soon, either by the end of 2024 or in 2025, signaling a favorable time to go public.

Telegram’s optimistic financial outlook is attributed to several factors. Over the past few years, Durov has diversified the messaging app’s revenue streams. Currently, there are five million premium users paying approximately €5 per month for an enhanced version of the app. Recently, similar premium accounts tailored for businesses were introduced, also with a monthly subscription fee. Additionally, Telegram has ramped up its advertising business within channels.

Simultaneously, Telegram is capitalizing on the growing discontent among users of other social media platforms who feel restricted in their freedom of expression, leading them to migrate to the app. The user base is expected to reach 900 million soon, offering ample potential for revenue generation through premium accounts and advertising. Furthermore, the cryptocurrency Toncoin (TON) continues to serve as a means of payment within the app, with Telegram utilizing TON to distribute advertising revenue shares to channel operators.

With a staggering 18 million users per employee, Durov, who co-founded Telegram with his brother Nikolai in 2013, is now the sole shareholder of the company. In 2021, the app raised a substantial $2 billion through bonds to further finance operations and ensure enough runway to reach profitability. Personnel costs remain minimal, with Durov claiming to employ only 50 staff members to support 900 million users, reminiscent of Instagram’s acquisition by Facebook in 2012 for $1 billion, with just 13 employees managing 30 million users.

As for Telegram’s potential valuation upon going public, Durov claims to have received investor offers valuing the company at up to $30 billion. Comparable social media platforms like Pinterest or Snapchat currently boast valuations of approximately $20 to $30 billion, making such a valuation plausible. However, Telegram’s relatively modest revenue may suffice to sustain operations.

Nevertheless, the darker side of the messaging app lies in its numerous groups and channels run by dubious individuals or even criminal organizations, who have turned to Telegram as one of the last platforms to disseminate their messages. For instance, it took significant time for the operators to shut down Hamas channels following terrorist attacks on Israel. Handling hate speech and criminal content will undoubtedly become a central issue in any potential IPO process.

In an unexpected turn of events that sent shockwaves through the financial markets, New York Community Bank’s stock ($NYCB) experienced a precipitous decline, plummeting over 40% in a single trading session. This dramatic downturn led to an immediate halt in trading, with the announcement that the bank’s stock has been suspended pending further news. This development has left investors and market observers on edge, eagerly awaiting more information.

The Catalyst Behind the Crash

While specific details regarding the cause of the stock’s drastic fall remain undisclosed, such a significant drop typically signals underlying issues or concerns that may have come to light. Possible factors could include financial instability, regulatory concerns, or significant changes in the bank’s operational landscape. The pending announcement from New York Community Bank is highly anticipated, as it is expected to provide crucial details that could explain the sudden downturn.

Market Implications

The crash of New York Community Bank’s stock has broader implications for the financial sector, particularly for banks of similar size and scope. Investors and analysts are closely monitoring the situation, as it could indicate emerging challenges within the banking industry or the economy at large. The halt in trading serves as a pause for stakeholders to assess the situation and prepare for the potential ramifications of the forthcoming news.

Investor Sentiment and Future Prospects

The immediate impact on investor sentiment has been notably negative, with concerns over the stability and future prospects of New York Community Bank. However, the long-term effects will largely depend on the nature of the announcement and the bank’s response to the crisis. A comprehensive and transparent explanation from the bank, coupled with a viable strategy for addressing any underlying issues, could help to mitigate the negative impact and restore confidence among investors.

What’s Next for New York Community Bank?

As the financial community waits for more information, the focus is on how New York Community Bank will address this unprecedented challenge. The forthcoming announcement is not only crucial for the bank’s stakeholders but could also serve as an indicator for the health of the banking sector and the resilience of financial institutions in facing sudden adversities.

In the meantime, the suspension of trading provides a momentary pause, allowing the market to stabilize and preventing further immediate losses. This period is critical for the bank to formulate a response that addresses the concerns of investors, regulators, and customers alike.

For ongoing updates and detailed analysis, stakeholders are encouraged to follow reputable financial news sources and stay tuned for the official statement from New York Community Bank.

This situation highlights the volatile nature of the financial markets and the importance of robust risk management and transparency in maintaining investor trust and market stability.