High school makes $24 million from Snap IPO

Protesters demonstrated outside Snap Inc.’s Venice headquarters on Thursday, claiming that the company is turning colorful local retail space into tiresome offices. The stock has since risen 259 percent above the IPO price.

The company started trading at 24 dollars per share around midday Thursday, jumping more than 40 percent from its pricing. The fact that the company changed its name to Snap from Snapchat makes its quite clear it wants to explore other arenas as well.

Snapchat, which is especially popular with teenagers, allows users to send images and messages which then vanish. Though just six months old, Instagram Stories has almost as many users as Snapchat.

Investors could also be wary given Facebook’s disastrous stock market floatation five years ago.

Although Snap is going public at a much earlier stage in its development than Twitter or Facebook, the five-year-old company is valuing itself at almost 60 times revenue, more than double the 27 times revenue mark Facebook fetched in its IPO. Twitter is now valued at $11 billion. In Twitter and Facebook, he said, Snap has two “divergent role models, if they are students of the market”.

The drone prospect offers a glimpse into what Snap might be considering next, and could have a huge impact on its future value and growth.

“[Barry’s daughter] said there’s three apps that everyone has on their phone: Instagram, Angry Birds and Snapchat”, Liew told CNNTech.

“Snap’s IPO has spurred great interest because few tech companies went public last year amid a shaky market, and none have debuted on the stock market this year”, the report said. If Snap stock had hovered at that level after it began trading, Murphy and Spiegel would have achieved a net worth of “only” $3.9 billion each-even after selling the 16 million shares as intended.

Investors may not hear from other analysts for awhile. “Such moves could damp volatility by limiting the number of short-term stockholders who can jump in and out”. In our view, Snap shares are overvalued, and we would wait for a pullback and a margin of safety before investing in this very high uncertainty name.