Snap Inc continues to enjoy the honeymoon as the latest must have tech stock. The stock jumped 44% on its debut pushing the stock price up to $24. This bounce put the company's market cap at about $34 billion which means it's worth more than media giants like Viacom and CBS. Snap Inc is so hot right now that even NBC-Universal injected another $500 million into the company making it the only U.S. media company with a stake. The IPO also helped increase the net worth of many individuals including chairman Michael Lynton, founders Evan Spiegel and Bobby Murphy and Joanna Coles the only female board member and the chief content officer of Hearst Magazines. Even a high school in California raked in $24 million from the $15,000 in seed money it invested when Snapchat was in its start up phase. With a big valuation and a big spotlight now fixed on it, it's time for Snap Inc to perform and prove it has a sustainable business model. The company attracted many investors even though growth has slowed partly due to Instagram and there are lingering concerns about the company's business model. None of these things seemed to have deterred investors. But soon the newness will disappear and investors, though they have no say in what happens at the company, will still want results almost overnight. One path for the company to fuel growth is by acquiring new technologies to develop new products. Shares of Snap Inc. opened at $26.39 Friday, up 8% from it's price at market close Thursday.
Day Two, Snap Inc Continues to Pop
Reviewed by Editor
Friday, March 03, 2017