Wazzup Economic Markets | Snapchat IPO Makes Splash with Public Offering | @wazzuptonight
New York, NY – The bells on Wallstreet sounded with cheer Tuesday as the newest app on the block exploded onto the scene by announcing to the world it’s IPO! Snapchat, a social media messaging app wildly popular with young users under 30, has planted its stake in the ground by going publlic. The feat marks the most anticipated tech IPO since the introduction of Alibaba in 2014. Today, there are more than 2.5 billion “Snaps” created in a single day by more than 160 million users. Evan Spiegel, Snapchat’s CEO, offered the IPO, complete with a simple how-to-guide which is unprecedented all in itself.
The IPO saw an initial price of around $17 dollars and closed at $24.48 after the first day, while surpassing $29 dollars the second day. That’s an whopping 20% increase! If you were smart enough to take advantage of the initial IPO, you are in a crowd that stands to make hundreds of millions dollars. Analyst say get in while the fire is hot, at the current rate there is no guarantee that this surge will continue without falling victim to the infamous IPO drop off.
The gesture of a “Snap“ simply requires a user to either tapping the camera button to take a photo, or holding the camera button to record a video up to ten seconds long. The newly formed “Snap” is created and appears on the camera screen. That’s where the fun begins by giving the user opportunities to be creative with an array of filters and tools designed to make cool, clean upgrades to the “Snaps”. The filters are updated periodically with means for the user to create text, doodle, and even create innovative stickers or emoji’s.
Sounds like a sure fire investment, right?
Some analyst predict that Snapchat will follow the trends of Facebook, which struggled in its first year after listing, but propelled to break records. “Snapchat” is the leading camera platform among the millennial crowd and rapidly gaining older users. As of today, Snapchat has a market cap of $37.5 billion, which is in line with some major brands that have been performing well for decades.
