Snapchat took the world by storm in 2011 after it was developed by three friends from Stanford University. The unique feature behind this application is that the pictures and videos sent can only be seen for a short period of time before they are deleted. This feature brought a new system of communication to the social media platform. With popularity soaring and daily usage reaching in the millions, Snapchat founders changed their business name to Snap Inc.
After large success and receiving offers from major competitors like Facebook, Snap Inc. decided it was time to go public. They made their announcement about publicly selling shares of their business to the excitement of investors around the world. March 2, 2017 marked their first day of public trade. The hype surrounding this stock was massive. Unsurprisingly, Snap Inc. became the most active stock on the NYSE on its debut day. Snap Inc. grew an impressive 41.2 percent from its original pricing. This put the company at $24 a share from the beginning. These numbers put Snap Inc.’s market capitalization at $33 billion. In comparison to other social media giants, this is an impressive opening market cap. All signs point to steady growth as the first day of trading is closing out.
Supporters point to the potential success of Snap Inc. along with the visionary leadership of the company’s CEO Evan Spiegel. Critics on the other hand see the company’s reported $515 million loss last year as a sign of trouble for the future. Regardless, the excitement and hype surrounding the IPO of Snap Inc. has led many people to invest. While much of the predictions are simple speculation, time will tell whether or not the new social media company will be able to capitalize on these investments and continue to grow their brand.