It started out as a quirky little app but soon became a very big deal. Snapchat is now a well recognized and appreciated social network, at least among a certain age group of people. That group is namely millennials and those slightly younger than them. This group has a lot of influence in how business runs these days, so this has helped propel Snapchat to the heights that it has reached today.
CNN Money poses the question “Should millennials buy Snapchat stock?”. The company went public just earlier this year, and it was a big splash on Wall Street, at least in the sense that it was yet another major social network taking the leap and becoming a public company.
Twitter and Facebook have both gone before Snapchat into the public market. Facebook had a disappointing first day on the Street but Twitter took off during the first day of trading. However, fortunes have really changed for those two companies since that time. Facebook is among the most valuable brands on the planet while Twitter is floundering as a social networking business.
A similar story seems to be playing out with Snapchat at least as of the date of this writing (June 12th, 2017). This is to say that Snapchat had a lot of hype and buzz around it and did well in its first few days as a stock, but has since fallen in price. It has not recovered to the prices it was valued at during those very first few days. That could be troubling for those who hold the stock as well as for those who would consider buying in.
Even though millennials seem to know the company well, it is never a good idea to purchase a stock simply because the company seems cool or because you know a little about the company. Rather, there are plenty of other brands and companies out there which probably make a lot more sense to purchase from a value standpoint. You may want to consider them instead if you are serious about your investing and want to make a nice profit.