High school makes $24 million from Snap IPO

Andrew Cummings
March 4, 2017

The Snap IPO is expected to price late Wednesday and begin trading Thursday.

It is now 39% down on its offer price - its user growth and other metrics consistently proving disappointing for investors.

Snap, Inc. Is now valued at $33 billion dollars, which puts it on par with Target and the Marriott Hotel chain. And though Snap has yet to make a profit - the company lost $515 million a year ago, many analysts say one of the biggest worries investors have about the deal is the fear of missing out. Facebook tried to acquire Snap in 2013 for $3 billion but was rejected.


Wall Street is still seemingly abuzz with excitement after Snap (SNAP) made its blockbuster debut on the New York Stock Exchange on Thursday, marking the first tech IPO to go public this year.

Benchmark Capital, Lightspeed Venture Partners, and General Catalyst are among the investors that planned to sell shares.

The main question for investors ahead of the Initial Public Offering (IPO) was whether Snap represented a good financial bet given varied performances for similar stocks since their own market bows.


At the high, Snap's market value is now hovering around $40 billion. The larger ecosystems of Snap's competitors may have also created somewhat of an exit barrier for their users, which we think could further limit the growth acceleration of Snapchat users.

Analysts and investors hope that Snap shares pop on the first day of trading and stay strong, thus paving the way for hesitant tech unicorns to take the IPO plunge. IPO is raised on the facade the New York Stock Exchange yesterday.

According to analysis from the analysis firm 7Park Data suggests that the launch of Instagram Stories - a feature very similar to Snapchat's Story product - hurt Snapchat's growth.


In its official public offering prospectus, Snap revealed that the average Snapchat user opens the app at least 18 times per day, and more than 2.5 billion images and messages are sent daily through Snapchat.

Other reports by iNewsToday

FOLLOW OUR NEWSPAPER