Snapchat parent rockets higher in IPO

At $24 billion, the IPO valuation was more than double the size of rival Twitter and the richest valuation in a USA technology IPO since Facebook in 2012.

Soon after Thursday's opening bell rang at the New York Stock Exchange, the stock began trading at more than $24 a share - almost 50 percent higher than its IPO price, CNBC reported.

"Some optimistic investors have suggested that Snap Inc could well be the new Facebook, while others have suggested it could end up like Twitter". Moreover, it offers facial filters suited for jazzing up selfies. Despite the popularity, analysts warn that the company is young and has yet to generate profits. In a sense, it's ahead of the game. He calls the company "an upstart facing aggressive competition from much larger companies, with a core user base that is not growing by much and which is only relatively elusive". Such a device would presumably enable users to take aerial photos and videos, and then share that content via the Snapchat app. Snap, by the way, lost more than half a billion past year.

"Snap has a chance to look at the good and the bad, the positive and negative choices of companies that come before them", Gellert said. Twitter, on the other hand, surged 73% in its first day of trading, but less than two months later started on a downwards trajectory that it's yet to recover from.

The shares were more than ten times oversubscribed, Reuters said. But many of them are finding Snapchat harder to fit in with daily life. "It was like one more thing to do".

Snap's IPO also is the first notable tech IPO of 2017.

Easing this feeling of pressure will be key for Snapchat, especially if it wants to attract older users.

Solactive said that "due to its high importance for the social network sector", it would be adding Snap to its social-media total return index-which the ETF tracks-at the close of business on March 7.

Unlike Facebook, Snapchat's images disappear by default, a feature that baffled many people initially.

Open the app, and you open a camera. "A slower user growth trajectory in the present naturally limits upside in Snap's revenue generation in future years", he wrote. Ultimately, Snap doesn't have to be like either to succeed and can forge its own path and identity.

  • Angelo Rivera