News Worms
News Worms


Evan Spiegel's friends might just have made a killing on Snap's IPO

Evan Spiegel's friends might just have made a killing on Snap's IPO

Snap Inc's in-demand shares are set to start trading in NY on Thursday after the owner of the popular Snapchat messaging app raised $3.4 billion in its initial public offering (IPO) on Wednesday, above its price expectations. Snap, by the way, lost more than half a billion past year.

Snap (SNAP) is slated to begin trading on the NYSE Thursday morning, under the ticker SNAP.

Snap's net loss ballooned 38 percent a year ago to $514.6 million even as it grapples with fierce competition from rivals such as Facebook's Instagram, says Reuters.

That's far, far, and away above the price Snap set last night, $17 per share, when the company raised $3.4 billion - a 44 percent increase.

Snap is targeting a valuation of between $19.5 billion and $22.3 billion for its listing on the New York Stock Exchange on Thursday.

Snap shares scored an initial pop of almost 40 percent when they started trading on the public market Thursday.

The firm's inital public offering (IPO) is the biggest for a USA tech firm since Facebook in 2012 and will turn the company's founders, Evan Spiegel and Bobby Murphy, into multi-billionaires.

Daily normal volume was around 10 times higher on Snap's IPO than a typical day, according to Schatt.

After a long drought for tech offerings, Snap's IPO is the nerviest stock-market debut in years, in more ways than one.

Spiegel, 26, made $2.4 million as CEO in 2016, but has said he will reduce his annual salary to $1 now that he's a billionaire.

That places a current valuation of Snap at $28bn, with Evan Spiegel and co-founder Bobby Murphy's holdings worth about $5bn each. Plus, the Snapchat founders' shares are likely worth significantly more than the Snap stock that was sold to the public.

Snap, which brings in the bulk of its revenue from advertisements in filters and promoted stories on Snapchat, could use the funds from an IPO for acquisitions of additional virtual-reality companies. They could always sell their shares, of course. After all, Snap's shareholders will still retain one lever of control: "Investors can vote with their feet", Feldman says.

follow

editors' picks

March 04, 2017
Mercedes-Benz to recall up to 75000 United Kingdom cars over fire risk
It added affected vehicle owners would be notified this month and again when proper replacement parts were available in July. The models have a defective "current limiter", or fuse, according to the carmaker's US regulatory disclosure.

March 04, 2017
Costco is raising membership fees for first time since 2011
Costco Wholesale Corporation (NASDAQ: COST ) Discount, Variety Stores has a Current Ratio of 1 with a Quick Ratio value of 0.4. Now the stock price is moving -0.41% off from the highest level of twelve months and +29.53% above from twelve months low.

March 04, 2017
World oil prices rise
Loading programs for the four crudes that underpin dated Brent showed a rise to 908,000 barrels per day, from March's 884,000 bpd. May Brent crude rose 54 cents, or 1%, to $55.62 a barrel on London's ICE Futures exchange-trading about 1.2% lower on the week.

March 04, 2017
British PM May says preserving union a prime goal
As Alex Massie details in this week's Spectator cover piece , the SNP's hopes of a political dividend from Brexit have come to nothing.

March 04, 2017
Dems, Republicans scour Capitol Hill in search of elusive ACA replacement bill
It's nearly like they want to take away 20 million people's healthcare under the cover of darkness. He said Republicans "are united and we are determined" to act.

March 03, 2017
Police force retains good rating for keeping people safe and reducing crime
Norfolk Police has performed against the grain, as 14 police forces in England and Wales are inadequate or need improving. Cambridgeshire Constabulary is good at preventing crime, tackling anti-social behaviour and keeping people safe.

March 03, 2017
Both Elizabeth Warren and Ed Markey Vote Against Ben Carson's Confirmation
On Wednesday, the Senate voted 62-37 to allow his nomination to move forward, and Warren was among the "no" votes. Carson gained national prominence in 1987 for his role in helping to separate infant conjoined twins.

March 03, 2017
Pine-Richland transgender students can use bathroom of choice, federal judge rules
Tom Kopp, superintendent of Keshequa Central School, echoed Cole's comments "as representative of Keshequa's position". Juliet and two other students went up against their school board, and a federal judge has ruled in their favor.

March 03, 2017
The Wounded Lion Searing For Revenge; Trailer Of Sarkar 3
Also, the background score in the trailer reminds me of Ram Gopal Varma's own underrated gem, Rakhta Charitra. RGV Sarkar 3 trailer launched and it depicts Amitabh Bachchan stealing the joint with his intense performance.

March 03, 2017
Stolen truck goes airborne after high-speed police chase in LA
While the deputy was speaking to the driver outside the vehicle, Austin slid over to driver's seat and drove away. It started off with a routine traffic stop, until the driver was asked out of the truck for questioning.