Investors are buying into Snapchat’s massive $16 billion valuation because its business is growing significantly. Or at least expected to grow significantly in 2016.

Snapchat is targeting between $300 million and $350 million in revenue in 2016, according to multiple sources familiar with the company’s plans. That’s six or seven times the $50 million in revenue Snapchat projected last year…

 

Source: Snapchat Expects Revenue of $300 Million or More This Year | Re/code