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Tech Help, Electronics, & Gaming Discuss Snap IPO at the General Discussion; Snappy IPO... Snap's shares pop after year's biggest IPO Mar 02 2017 - Snap Inc's shares ended up 44 percent ...

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Old 03-03-2017, 01:57 AM
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Cool Snap IPO

Snappy IPO...

Snap's shares pop after year's biggest IPO
Mar 02 2017 - Snap Inc's shares ended up 44 percent on their first day of trading as investors flocked to buy into the hottest technology stock offering in three years, overcoming doubts about the loss-making messaging app company's slowing user growth.
Quote:
The stock closed at $24.48 on the New York Stock Exchange on Thursday, well above the initial public offering price of $17 per share on Wednesday, giving the company a market value of $28.3 billion, on a par with CBS Corp (CBS.N) and Target Corp (TGT.N). At one point the stock hit a high of $26.05 and a market value of $29.1 billion. The owner of Snapchat, an app popular with young people for its disappearing messages, raised $3.4 billion in its IPO on Wednesday, more than the $3 billion Facebook Inc (FB.O) offered to pay for the company in 2013. With a full greenshoe option to issue more shares likely to be exercised, the company is poised to increase its deal size to $3.9 billion. That makes it the biggest U.S. technology IPO since Alibaba Group Holding Inc (BABA.N) in 2014, despite the fact that Snap has never made a profit.


A Snapchat sign hangs on the facade of the New York Stock Exchange (NYSE) in New York City, U.S.

Secretive Snap co-founder Evan Spiegel, who usually favors sweats or a button-down shirt, showed up to the floor of the exchange in a suit and tie to ring the opening bell before leaving the building to watch festivities away from the spotlight he famously avoids. He earned $272 million on the offering. Among the traders on the floor, men and women carried the company's video-camera glasses called Spectacles and stuffed versions of Snap's smiling ghost mascot. The IPO has tested investor appetite for a social media app that is popular among people under 30 for applying bunny faces and vomiting rainbows onto selfies, but has yet to convert the cool factor into cash. Despite a nearly seven-fold increase in revenue, Los Angeles-based Snap's net loss widened 38 percent last year to $514.6 million. It faces intense competition from larger rivals such as Facebook's Instagram as it grapples with decelerating user growth.

KEEN HUNGER

Snap launched its shares into a hungry market. The order book was more than 10 times oversubscribed and Snap could have priced the IPO at as much as $19 a share, but the company wanted to focus on securing mutual funds as long-term investors rather than hedge funds looking to quickly sell, a source familiar with the matter told Reuters. Underwriters often price their IPOs below where they estimate demand in order to maximize the chances of a first-day spike. Such a pop, though it can be positive for a company's morale, does not ensure long-term success. Shares of social media company Twitter Inc (TWTR.N) surged 93 percent when they first opened on the New York Stock Exchange in 2013, but are now trading at $15.84, down nearly 40 percent from the $26 IPO price and nearly 70 percent from the opening price of $50.09.


Snap cofounders Evan Spiegel (C) and Bobby Murphy ring the opening bell of the New York Stock Exchange with NYSE Group President Thomas Farley.

The New York Stock Exchange carried out a trial run last week to make sure the third-biggest technology IPO ever went smoothly. Nasdaq Inc (NDAQ.O) received intense criticism for botching Facebook's 2012 IPO when its technology was unprepared for the level of demand for the shares. Jeffrey Sprecher, chief executive of Intercontinental Exchange Inc (ICE.N), the owner of the New York Stock Exchange, stood in front of the trading post to monitor the hours-long pricing process, emphasizing the importance of the IPO going smoothly.

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Old 03-03-2017, 10:03 AM
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Default Re: Snap IPO

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Originally Posted by waltky View Post
Snappy IPO...

Snap's shares pop after year's biggest IPO
Mar 02 2017 - Snap Inc's shares ended up 44 percent on their first day of trading as investors flocked to buy into the hottest technology stock offering in three years, overcoming doubts about the loss-making messaging app company's slowing user growth.
My stock tip of the day. 30 day short SNAP.

These pie in the sky IPO's have a way of dropping considerably after the glamor wears off.
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Old 03-04-2017, 10:25 PM
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Cool Re: Snap IPO

Calif. high school makes out like a bandit on Snap IPO...

California high school makes $24-million from Snap IPO
Saturday 4th March, 2017 - A California high school has made millions of dollars from the initial public offering of shares in Snap Inc., the company behind the Snapchat photo messaging application.
Quote:
Simon Chiu, the president of Saint Francis high school in Mountainview, said the school board agreed to invest $15,000 in seed money in Snap in 2012, when the company was just getting started. They had been invited to do so by one of the student’s parents, who was a venture capital investor.

Snap shares sold for $17 each in an IPO this week and their price rocketed 44 per cent higher when trading began Thursday. The school was quoted by media including Quartz as saying they sold two-thirds of their shares at $17 each, to raise $24-million.

California high school makes $24-million from Snap IPO - The Globe and Mail
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Last edited by waltky; 03-04-2017 at 10:35 PM..
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Old 03-05-2017, 08:58 AM
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Default Re: Snap IPO

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Originally Posted by jimbo View Post
My stock tip of the day. 30 day short SNAP.

These pie in the sky IPO's have a way of dropping considerably after the glamor wears off.
Especially when from what I understand, Snap really has nothing to make real money in their business plan.. No revenue, IPO?

Regards, Kirk
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