Snapchat's $24 Billion Valuation Sets A High Bar For Its Future
- Author: Zachary Reyes Mar 04, 2017,
Mar 04, 2017, 19:15
Snap is set to begin trading on Thursday on the New York Stock Exchange under the symbol SNAP.
Snap's IPO order book was more than 10 times oversubscribed and could have allowed the company to price its shares at as much as $19 a share. Snap stock rose another 3% throughout the day on Thursday, closing at $24.48 per share and valuing Snap at $28.3 billion.
Snap's valuation is the largest for a US -listed IPO since Chinese e-commerce giant Alibaba. The firm sold at least 4,632,890 shares in the offering, bringing in about $78.8 million. Instagram introduced its successful Snapchat-like Instagram Stories last August, while WhatsApp launched a similar feature called "Status" this February. The company's fate on Wall Street also stands to serve as a litmus test of sorts that will help us understand if the age of overhyped social media companies is coming to a close.
That comes across in its prospectus, which makes clear Snap is a founder's company. IPO is raised on the facade the New York Stock Exchange yesterday. "It certainly pushes the limits on governance". Twitter is now valued at $11 billion. The publication cites three people familiar with the project, but it remains unclear whether the product will actually see the light of day. They're not the only ones celebrating. Visual data or pictures are at the base of Snapchat app and the company can do so much more in that area with a drone.
Founded in 2011, Snap, which refers to itself as a camera company, is a popular player in the social network space. Snap has 158 million daily active users. They say the average age of an investor buying Snap was 26, the same age as Spiegel. In response to the protest, Snap released the following statement: "We've been very grateful to be a part of this creative community for over the last four years and we've worked closely with local schools and nonprofits to be a good neighbor". All that matters, he says, is "Generation Z uses it, and uses it aggressively, because advertisers are clamoring for their dollars".