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
Morgan hits 10th ODI ton as England make 296
It would prove costly as the England skipper went on to anchor the tourists' innings expertly. England have more depth in all elements of the game and should start things off with a win.

March 04, 2017
Borussia Dortmund star reveals Liverpool FC bid
While acknowledging his respect for Klopp, the US global admits a move to Liverpool never really crossed his mind. I knew about how Dortmund developed young players.

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
Sony Xperia XA1 Ultra hands on: pretty angular, no bezel
That means you can interact with the images on the screen by simply "pressing" the appropriate button or UI element. This is because of Sony's recent pattern when it comes to their newer Xperia offerings.

March 03, 2017
HHGregg closing 88 stores, including its Lehigh Valley Mall location
The 61-year-old company is preparing to file for bankruptcy amid low sales, people familiar with the matter told Bloomberg. The company will lose 88 locations and three distribution centers, leaving 132 stores nationwide by mid-April.

March 03, 2017
Xbox One and Project Scorpio Will Support VR Games
When the full service is ready to go live, Xbox Live Gold members will have early access. Xbox One and the Windows 10 store will soon witness an influx of new video games.

March 03, 2017
2016-2017 Flu Season Losing Momentum but Far from Over
Flu vaccines are being offered to anyone 6 months and older on a walk-in basis from 8 a.m.to 4 p.m. The Centers for Disease Control and Prevention updates its map of flu activity.

March 03, 2017
Federal Government To Drop Opposition To Texas Voter ID Law
Overshadowed in a big election year for Texas is a big trial coming over how ballots are now cast: under a tough new voter ID law. Voting advocates complained that the Trump administration was backing away from a key safeguard of voting rights.

March 03, 2017
Federal agents raid IL offices of machinery maker Caterpillar
Caterpillar's stock traded recently at $94.37, down more than 4 percent on the day. Eastern Time in NY , heading for the biggest decline since June.

March 03, 2017
Obama aides left a trail of intelligence about possible Russian election hack
The House Intelligence panel's investigation will occur alongside a separate ongoing probe by the Senate Intelligence Committee. Gingrich said Trump should "take a lesson from the past" by appointing a "very smart, independent person" to investigate.