Instead of focusing on the core product of disappearing messages, Snapchat instead represents a new way of consuming content, largely produced by its users - laid alongside a fast-growing advertising business.Īt the end of 2016, Snap reported an average of 158 million active daily users. Throughout the presentations to investors, Snap executives and their advisers kept the emphasis squarely on the promise of what first seemed like a technological lark. With a market value of almost $24 billion, including unvested stock options and grants, the company is now setting itself up with little room for error. Bankers for the company received orders totaling more than 10 times the number of shares up for sale. But a few rules of thumb can stave off some nasty surprises.Īfter a nearly two-week road show for investors that spanned the country and stretched to London, demand for Snap shares proved robust. Tips for Investors: When you invest and where matters for taxes.May I Speak to a Human?: Younger investors who are navigating market volatility and trying to save for retirement are finding that digital investment platforms lack the personal touch.Value and Growth Stocks: Eight tech giants are no longer “pure growth” stocks, while Exxon and Chevron are, according to a new study.They’re also potentially warning of a recession. Bond Trading: Wild swings in the Treasury market are unlike anything many investors have ever seen.Our Coverage of the Investment World The decline of the stock and bond markets this year has been painful, and it remains difficult to predict what is in store for the future. Yet when Snap begins trading on the New York Stock Exchange on Thursday, under the ticker name SNAP, it will command a lofty valuation multiple even richer than that of Facebook, which earned $10 billion last year. And in a decision that has angered some large investors, the shares will have no voting rights, leaving control in the hands of the company’s founders, who can retain that power for years even after leaving Snap.
It lost more than $500 million last year, and its explosive user growth appears to have hit a speed bump.
Those buying into Snap’s offering did so even as warning signs have flashed over the company, based in California. Shares of the social media companies Facebook and Twitter also rose. The pricing came on a day when the stock market surged to another high, fed by raised expectations of tax cuts, looser regulations and higher interest rates under the Trump administration. Snap’s offering was priced on Wednesday at $17 a share - a dollar more than the previously expected pricing range.
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