Snapchat Parent To Begin Trading On The New York Stock Exchange Thursday
Mar 04 2017 by Elias Hubbard
Snap Inc's in-demand shares are set to start trading in NY on Thursday after the owner of the popular Snapchat messaging app raised $3.4 billion in its initial public offering (IPO) on Wednesday, above its price expectations.
Barry Eggers' two sons attended the school - after they became transfixed by the app in 2012 he started to investigate - and to consider investing in the fledgeling company through his firm, Lightspeed Venture Partners.
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. The company was co-founded by Evan Spiegel and Bobby Murphy, who created Snapchat in 2011 while attending Stanford University.
Some Silicon Valley observers say the IPO should encourage other growing tech companies to go public, even if they're not yet showing a profit.
In its opening minutes, its price hit $24.48 a share, a jump of about 40%.
Facebook, meanwhile, saw its stock decline sharply for a few months after going public.
Shares in Snap, owner of messaging app Snapchat, have begun trading on the USA stock market.
The school held onto the investment until this week, when Snap shares sold for $17 each in an IPO.
In fact, appetite for Snap stock was so strong, many investors accidentally poured money into a completely unrelated company, Snap Interactive, as economist Justin Wolfers pointed out on Twitter. Analysts said it did so to make it appear different from Facebook and Twitter and the success and failure of their respective IPOs. The Los Angeles company is valued at above $30 billion.
Twitter, for example, shot up almost 73 per cent on its first trading day and now trades well below its IPO price.
Snapchat, which is especially popular with teenagers, allows users to send images and messages which then vanish. The amount implies a multiple of about 21.4 times EMarketer's estimate for Snap's 2017 advertising sales.