Well, that was quick. After surging up for two days following its IPO, Snap stock has taken a sharp fall. Shares of the company fell by almost 12 percent on Monday, erasing a portion of gains the company made on the previous two business days.
Snap IPOed at $17, above the expected opening price for the company stock which fell in the $14-$16 range. Investor excitement saw the company arrive at $24 by the time the first day finished. The trend continued on Friday, with stock reaching a $29 price apiece at its highest point. However, it fell by a bit to arrive at $27 by the time trading stopped.
Well, apparently the excitement is already wearing off. Snap stock closed at merely $23.77 on Monday, well beneath the $24 per share price it had opened up following its first day of trading. This is being taken as signs that after running far above expectations for a couple of days, Snap stock is finally letting go of some air and drifting back to everyday prices.
Regardless, Snap manages to show a market cap of around $35 billion and raised $3.4 billion to boot. Bear in mind that we are talking about a photo-sharing app here that is merely a handful of years ago. These kind of figures are seriously astronomical and the fact that Snap is now worth more than Hilton Hotels or the American Airlines, takes a few moments to digest.
Meanwhile, Snap’s IPO has been a success make no mistake. And that alone might prompt a while bunch of IPOs over this year and the next. After all, there are companies like Uber, which were waiting to see how the public reacts to the prospect of a tech IPO. The reaction appears to have been pretty splendid and I think we can count upon other startups to venture into the arena soon.
Phew, imagine Uber’s IPO! The company already has a valuation that is nearing $70 billion. Meanwhile, let’s hope that surging up and falling down doesn’t become a habit with Snap. I am sure it would prefer emulating Facebook rather than Twitter.
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