Snap Inc., the parent company of picture messaging app Snapchat, priced its highly-anticipated initial public offering at $17 per share Thursday, valuing the company at $24 billion. As investors waited for the first shares of Snap Inc. to finally begin trading, the social media world was buzzing about the pricing, valuation, and long-term future of one of the world’s most exciting young companies.
The Details
At $17 per share, Snap Inc. came in above its expected range of $14 to $16 per share, but either way, the IPO was slated to become the largest initial public offering since Alibaba (BABA - Free Report) debuted in 2014 (also read: Snapchat's $24 Billion IPO Arrives, The Biggest Tech Debut Since Alibaba)
Although its IPO prospectus defined it as a “camera company,” Snapchat is clearly a major playeron the social media landscape. In a broader sense, this is a massive day for the entire tech sector, as debuts like this are becoming increasingly rare.
For more on the ins and outs of the IPO, check out this exclusive interview from the Zacks Friday Finish Line Team and Kathleen Smith, a co-founder of IPO-focused research firm Renaissance Capital:
Social Media Reactions
Snapchat was hogging all of the headlines on Thursday morning:
$SNAP Stats #SnapIPO https://t.co/h6PBRa8mDp pic.twitter.com/11mpSRz458
— FOX Business (@FoxBusiness) March 2, 2017
And Snapchat co-founders Evan Spiegel and Bobby Murphy were on hand to ring the opening bell at the New York Stock Exchange:
Markets open flat; $SNAP to begin trading on the NYSE soon https://t.co/1NmPDsrHwG pic.twitter.com/N2m8e9pnJ2
— CNBC (@CNBC) March 2, 2017
As is standard with these massive market events, the sentiment on social media was mixed. Plenty of optimistic investors seem to have confidence in Snapchat’s current user experience and future potential:
Interesting angle on $SNAP: In 5-10 years Snap's hardware will change the way we communicate. https://t.co/ewxzhBsyMv
— andrew furman (@furman) March 2, 2017
medaytrading shared an idea on StockTwits
Don't listen to anyone's opinion on $SNAP over age 35
— Joseph (@Joseph_Zilla) March 2, 2017
On the other hand, some investors are concerned about the company’s ability to make money and are not buying into the “hype” surrounding the IPO:
badfishsupertramp shared an idea on StockTwits
Worth $24 billion, $SNAP is trading at a 59-60x trailing revenue multiple.
el oh el.
— Alex (@alex) March 1, 2017
chris_barran shared an idea on StockTwits
Bottom Line
How will Snapchat fare in the future? Well, no one truly knows for sure, and its first day of trading will most likely by an unreliable gauge of its potential. In the social media sphere, Facebook had a rocky first day of trading, while shares of Twitter were up more than 70% on their debut. Now look where both companies are.
Nevertheless, today is a historic day on the market. Another major tech company has joined the fray, and whether you believe in the company or not, you must admit that these are exciting times.
Sentiment across the social media world was clearly split. How do you feel about Snapchat’s IPO? Join the conversation with ZacksResearch onStockTwits and Twitter!
Everything You Need to Know About Snapchat’s IPO Now
You may be curious about the buzz surrounding Snap Inc.'s IPO, but should you snap up this tech stock on Day 1? In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges.
You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Snap Inc., the parent company of picture messaging app Snapchat, priced its highly-anticipated initial public offering at $17 per share Thursday, valuing the company at $24 billion. As investors waited for the first shares of Snap Inc. to finally begin trading, the social media world was buzzing about the pricing, valuation, and long-term future of one of the world’s most exciting young companies.
The Details
At $17 per share, Snap Inc. came in above its expected range of $14 to $16 per share, but either way, the IPO was slated to become the largest initial public offering since Alibaba (BABA - Free Report) debuted in 2014 (also read: Snapchat's $24 Billion IPO Arrives, The Biggest Tech Debut Since Alibaba)
Although its IPO prospectus defined it as a “camera company,” Snapchat is clearly a major playeron the social media landscape. In a broader sense, this is a massive day for the entire tech sector, as debuts like this are becoming increasingly rare.
For more on the ins and outs of the IPO, check out this exclusive interview from the Zacks Friday Finish Line Team and Kathleen Smith, a co-founder of IPO-focused research firm Renaissance Capital:
Social Media Reactions
Snapchat was hogging all of the headlines on Thursday morning:
And Snapchat co-founders Evan Spiegel and Bobby Murphy were on hand to ring the opening bell at the New York Stock Exchange:
As is standard with these massive market events, the sentiment on social media was mixed. Plenty of optimistic investors seem to have confidence in Snapchat’s current user experience and future potential:
medaytrading shared an idea on StockTwits
On the other hand, some investors are concerned about the company’s ability to make money and are not buying into the “hype” surrounding the IPO:
badfishsupertramp shared an idea on StockTwits
chris_barran shared an idea on StockTwits
Bottom Line
How will Snapchat fare in the future? Well, no one truly knows for sure, and its first day of trading will most likely by an unreliable gauge of its potential. In the social media sphere, Facebook had a rocky first day of trading, while shares of Twitter were up more than 70% on their debut. Now look where both companies are.
Nevertheless, today is a historic day on the market. Another major tech company has joined the fray, and whether you believe in the company or not, you must admit that these are exciting times.
Sentiment across the social media world was clearly split. How do you feel about Snapchat’s IPO? Join the conversation with ZacksResearch onStockTwits and Twitter!
Everything You Need to Know About Snapchat’s IPO Now
You may be curious about the buzz surrounding Snap Inc.'s IPO, but should you snap up this tech stock on Day 1? In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges.
You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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