Mar 03, 2017 08:28 AM EST
Snapchat shares climb 44 percent in the firm's first day of trading on the United States stock market.
The messaging app firm's initial public offering is the biggest record for a US tech firm since Facebook in 2012 and could potentially turn founder's Evan Spiegel and Bobby Murphy into multi-billionaires.
On Thursday's close of trade, Snapchat shares were $24.48 each from the firm's opening offer price of $17 per share. Snapchat was left with a value of almost $30 billion even though it has never made a profit. This is the biggest earning value recorded for a tech company ever since 2012. Snapchat founders could now rest easy on their couches as they are on the path of becoming the next multi-billionaires.
Last February, Snapchat revealed its revenue of $404 million for 2016 although it made a loss of $515 million. The company's losses spread last year as it faced intense competition from larger rivals such as Facebook. Unlike Zuckerberg's tech giant, the audience of Snapchat is limited to teenagers and adults in their twenties because of its simplified yet techy features. The messaging app allows users to send images and messages that vanish after 24 hours.
Analysts offered their two cents on the Snapchat valuation results and some said the fresh tech company was overvalued.
"Unfortunately, it is significantly overvalued given the likely scale of its long-term opportunity and the risks associated with executing against that opportunity," Brian Wieser from Pivotal Research wrote in a note. On a positive note, Jordan Hiscott at Ayondo Markets praised its innovative features such as the lenses function.
The chief trader said the firm's take on the innovation is what sets it apart from other messaging apps like WhatsApp. He commended Snapchat for pushing with its "camera company" name than a messaging service. "This seems to be an intentional move to differentiate it from Facebook and Twitter and the success and failure of their respective IPOs, which in my view, is very clever," he noted.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
As the metaverse takes over more of our digital lives, the commoditization of all aspects of our virtual beings becomes more and more of a reality.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
Bitcoin and cryptocurrency in general guarantee some amazing profits if invested correctly.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Following the pandemic, natural calamities, and major employment shifts, a startling new study on the online news site News Nation shows that 1 in 4 Americans don't have an emergency fund.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.
Ease of access, freedom to choose in which to invest the money and lines of credit designed according to the needs of consumers, are some of the characteristics that have made consumer credit one of the most important financing products in the world’s market.