Snap finally had its highly anticipated IPO yesterday. While it is too early to compare it with Facebook’s debut on the stock market — a comparison many people are eager to read about — Snap seems to be having a good run. After kicking off at $17, the company managed to close at $24 yesterday. And it seems to be doing similarly well today as.
After opening above the pre-decided range of $14-$16, Snap stock closed a healthy 44 percent up from the opening price. The trend continued today with stock crossing $29 at one point. That was a temporary surge though and stock prices stood at $27.45 at the time of writing this article. However, that is still a hefty gain of well over 10 percent for today.
As things stand, the Snapchat maker has arrived at a market cap of around $38 Billion and it is probably safe to assume that Snap’s IPO is a success, at least initially. I mean sure, prices could drop down in the future and they probably will somewhat — once all this initial excitement surrounding Snap has died down a bit. However, that still leaves Snap with plenty of money in the piggy — probably a bit more than it initially set out to collect.
We might see a surge for a few more days, as investors continue gobbling up Snap stock. After all, it is the first tech startup of its kind to list on the exchange for a long time. However, once things settle down, the stock is likely to come down a tad and then settle down. The most important part of Snap’s journey on the stock market will start then as the stock starts creating s reputation as a steady investment or a volatile one. Look at Facebook for instance. The company’s stock has made most of its journey upwards. On the other hand you have companies like Twitter, that have highly volatile stocks.
Snap certainly has its own share of problems, associated with stagnating user growth and the like. The company needs to quickly leverage all the money it is generating and out it to good use. Growth, revenue and staying on top of competition are the some areas the company might want to consider before long.