Snapchat set for $24 billion IPO (make that $33 billion), also reportedly working on a...

William Gayde

TS Addict
Staff member

Starting today, SNAP will be traded on the New York Stock Exchange with an initial valuation of $24 billion; one of the largest offerings in recent years. Snap Inc. will have 200 million shares available to investors starting at $17 per share.

Update: After the first day of trading, Snapchat IPO rallied with a final 44% jump from its IPO pricing. The stock closed at $24.48, which is $7.48 above the offer price. A total of 216.5 million shares changed hands during the first day, with a demand that surpassed the stock offer five-fold and had SNAP closing at a $33 billion valuation.

At today's closing price, 26-year-old CEO Evan Spiegel became a billionaire, his Snap shares are worth roughly $6.48 billion. The company's CTO and second co-founder Bobby Murphy also became a billionaire today.

Some investors have their share of doubts given Snapchat's falling growth numbers though. In response, CEO Evan Spiegel has begun calling Snapchat a "camera company." That's where the drone fits in.

The social media app that lets users send disappearing pictures and messages is reportedly working on a secret drone project. According to confidential sources of the NY Times, the drone will "help Snap’s users take overhead videos and photographs, and then feed that visual data to the company." This news comes just as the company prepares for their IPO.

It is still unclear if the drone would ever become a consumer product and Snap isn't saying anything either. Media on Snapchat is only available for up to 10 seconds before it become inaccessible, so a drone may not be practical in that sense. Why go to the trouble of setting up and flying a drone if you can only capture a little bit of footage. What is clear is that this work also builds upon the Spectacles product launched a few weeks ago. The leak is well timed and certainly drums up interest in the company a day before the IPO.

Snapchat formally changed their name to Snap Inc. last year to reflect its changing focus as a brand. The drone work and Spectacles launch are signs of a new future for the company. We'll see if investors like it and decide to buy in.

Permalink to story.

 
Last edited by a moderator:

Skidmarksdeluxe

TS Evangelist
"working on a secret drone project"
How secret can it be if all and sundry already know about it? Real clandestine, cloak and dagger, 007 stuff going on around there it seems...
 
Last edited:

p51d007

TS Evangelist
Another dot com bubble...he better pull his money after it goes up!
Twitter, snap chat et al....just trendy crap that the teen through 20 something
get bored with quickly with their 5 minute attention span.
 

mojorisin23

TS Booster
33 billion for that stupid app? Pinnacle has its long term price target at $10. That seems about right.

Just watch what the 14 year old are using. As soon as they say 'Snapchat is sooo like over', thats when you start shorting it.
 

captaincranky

TechSpot Addict
Well, this just goes to prove what I've come to deeply believe as fact...

1. The stock market runs on nothing but the pure power of histrionics and fantasy. Another analog might be, "it acts like a chicken with its head cut off".

2. This generation of investors is inbred to the point of hemophilia and mental retardation.

This article was published HERE, not 4 weeks past:
Headline:

Snapchat loses way more money than it makes
The company "may never achieve or maintain profitability."

https://www.techspot.com/news/68016-snapchat-loses-way-more-money-than-makes.html

But yet, the stock market managed to throw billions, yes with a "B", at the DB's running the "place".