The New York Stock Exchange got a brand new and exciting listing this week. After several rip-roaring years of unyielding success, Snap Inc.(NYSE:SNAP), the maker of the widely used Snapchat application, finally went public on Thursday. Snap is already around five years deep into the social media game. Like online giants Facebook and Twitter, the maker of the popular, image/video sharing tool stands as the latest, widespread social media platform to go public.
The opening bell was rung by Snap’s leading co-founder, Bobby Murphy on Thursday. The Filipino-American tech billionaire stands as Snap Inc.’s co-founder and head of technology. Thursday’s event marked the official public trading of SNAP shares at $17 per share. The firm’s overall initial public offering was a phenomenal $3.4 billion. That figure was good enough to send shares soaring more than $10 in just two days of trading. As it stands, Snap Inc.(NYSE:SNAP) stock is valued at more than $27. The shares are projected to climb similarly for the few trading days before the initial stock hype dies down.
The realm of social media platforms has no shortage of competitors. Those big and brave enough to go public have a major shot at growth as well as massively tipping the scales in their favor. However, the likes of Twitter have also proven that falling into irrelevancy is not that difficult either. Snapchat has raked in users at a phenomenal rate and the platform continues to thrive as a distinct video-image platform. Bearing its potential game-changing effects, the social media space holds a few reservations on the effects of its success.
Snap secures billions
Snapchat was once regarded no more than a widely trending mobile phone app that would blow over soon enough. That was the notion until very recently, but now the parent company is valued to be worth well over $38 billion. In just two days of trading the company is worth more than Target and Delta and is set to rise a bit more for the first part of next week.
Proving that the industries have a lot of faith in SNAP stock, NBCUniversal made news of huge investment this week. The media giant announced that it stashed $500 million in Snap Inc as part of its IPO. Snap shares will be held by NBCUniversal for at least a year, according to the company. Currently sitting at $27.09, Snap is now worth more than Hilton, Target, Delta, Twitter and eBay.
Snapchat is led by billions
Sitting as the head of tech at Snap Inc.(NYSE:SNAP) is Murphy, a 28-year-old billionaire with a Forbes 400 listing and an estimated net worth of more than $4 billion. The Stanford University graduate along with his co-founding counterpart are now considered among the world’s youngest billionaires.
Co-founder Evan Spiegel saw his net worth spike to an estimated $6 billion after the firm went public. The 26 year-old stands as the Chief Exec at Snap Inc. He invested around $270 million’s worth of SNAP stock in the IPO. Spiegel has much of his wealth tied up in his firm and has already secured 210 million shares in Snap himself.
Will snap soar to greater billions?
While the increase in formidable rivals is welcome by some, there are others who fear the gentrifying effects of Snapchat’s expansion. Facebook offered $3 billion to make Snapchat its own four years ago but was turned down. Looking at the first two days of trading, it looks like the brains behind the company made a sound choice.
While SNAP shares are on the rise right now, analysts know that this does not guarantee long term growth for the firm. The are a few good questions currently hovering over Snap. What does the future of Snapchat look like? How does the company plan to innovate, diversify and grow? And how profitable will the firm be in the long-run?
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