When tech companies go public, employees can strike it rich - or not

Posted March 04, 2017

Snap will begin trading on the New York Stock Exchange tomorrow morning, in what is one of the biggest and most highly-anticipated United States market debuts of recent years.

DiClemente points out that Snapchat is already seeing a slowdown in the growth of daily average users and average revenue per user, two crucial metrics for a social media company.

Nonvoting shares means that investors who buy Snap stock, which will trade under the ticker SNAP on the New York Stock Exchange, won't be very attractive to activist investors.

Snap, owner of the Snapchat, has priced its shares for listing on the U.S. stock market at $17 per share, Reuters has reported.

Snap, which owns mobile app Snapchat that allows users to capture videos and pictures that self-destruct after a few seconds, was co-founded by Evan Spiegel and Bobby Murphy.

Snap's valuation is far below that of Facebook's $397 billion. Based on the number of fully diluted shares - 1.39 billion, the person said - the market value is $23.6 billion.

You may be curious about the buzz surrounding Snap Inc.'s IPO, but should you snap up this tech stock on Day 1?

Eggers was leading a $500,000 investment for his firm Lightspeed Venture Partners, which would be Snapchat's first, and convinced the school to put in $15,000 of that.

"Investors can't have the same level of confidence that they would in other companies", said Alan Brett, head of corporate governance ratings research at MSCI Inc.in London.

Some analysts are expressing pessimism about the immediate future of the stock, pointing out that Snap's fundamentals are closer to Twitter than Facebook. In particular, Facebook's Instagram may emerge as a substitute for Snapchat.

Snap, Inc., the parent company of popular picture messaging app Snapchat, went public on Wednesday, raking in over $3 billion in its IPO. It is looking to price 200 million shares on Wednesday night at a range of $14 to $16 a share. The massive demand on Stockpile for Snap shares is indicative of retail investor interest in the social media company. While Snap's revenue increased more than six-fold to $404.5 million in 2016 compared to $58.7 million in 2015, the company posted a net loss of $514.6 million in 2016, up from a loss of $372.9 million in 2015.