Snap’s first day of IPO seemed almost similar to the debut day of Twitter.
Snap Inc., the parent company that owns the popular image messaging and the multimedia app Snapchat had a wonderful outing on its day one at the New York Stock Exchange. As the day closed Snap made a 44 percent increase in premium that opened at $17 per share on Wednesday and closed at $24.
The initial IPO, which is traditionally accessible only for a select number of institutional investors and individuals with heavy weight net worth who are real close to banks, made it impossible for the common investors to make use of the initial pricing.
Many investors got a chance to buy the shares only on Thursday, which resulted in smaller gains compared to the profit premium of the initial investors.
Snap’s first day of IPO seemed almost similar to the debut day of Twitter which went public in 2013. Even though Twitter had very good initial days, the trading passed through many distressing phases during the following months.
On the other hand, Facebook, which had a really bad outing on the day one of IPO took momentum after a few days and flourished on the stock market overtimes.
The particular juncture at which Snapchat decided to go public is even more interesting. Unlike many other companies, Snapchat decided to go public very early, which is seen as a tactic to not to be seen as an overvalued company.
It should be noted that Snapchat is going public at a time when the company is facing stiff competition from Instagram. Instagram offers similar features that are offered in Snapchat and, above all, is owned by Facebook.
What makes snapchat stand out from the Facebook service is its default auto-delete function that makes things you share disappear soon after you share them.
Snap Inc. has registered itself as a camera company and not as an app that speaks volumes regarding the intention of the company to venture into areas other than the app.