Snap Inc the owner of the ever popular social media app Snapchat.
Made popular because of it’s disappearing messages has successfully completed it’s IPO on the New York Stock Exchange, under stock ticker symbol—yes, you guessed it—”SNAP.”
The company raised $3.4 billion. Shares of the messaging app company closed at $27.09 on Friday, well above its IPO price of $17 per share set on Wednesday.
While Snap is a fast growing social media company, similar to the success story of Facebook which started in a Harvard dorm room in 2004. Evan Spiegel is the 26 year old CEO of Snap and a former Stanford student, he turned down an offer from Facebook to buy Snap for a reported $4 billion dollars a few years ago. (source:Bloomberg).
Snap Inc. could be the next Facebook . . . But risks remain for investors. The major issue is that the daily active users have declined rapidly, from a peak of 21 million in the second quarter and 10 million in the third quarter, to 5 million in the fourth quarter in 2016 (source: Recode), the company is not profitable.
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