Snapchat Has Finally Gone Public!

Last March 2, 2017, in the New York Stock Exchange, Snap Inc., Snapchat’s parent company, finally filed for its long-awaited Initial Public Offering (IPO). On its first day, SNAP stocks surged 44 percent at $17 per share. The company sold 200 million shares that give $24 billion valuations. On its second day (March 3, 2017), SNAP explodes another 10 percent. Let’s see what the future has in store for SNAP…

Snapchat’s Stock Outlook

Based on what the Wall Street Titans stated, SNAP’s stock will soar up to 20 percent. The underwriters and analyst of SNAP released a report last March 27, 2017, about the prospects of the company’s recently sold IPO shares. The rating given by the underwriters and analyst of SNAP push the stock up to 5% in the pre-market trading. That left SNAP up 37 percent from its $17 initial public offer price.

There were 12 analysts in total calling the stock a “Buy,” 11 calling it a “Hold,” and now 6 calling it a “Sell.” The analysts who rated “Buy” stated that the company’s stock would hit $27.20 over the next 12 months. The analysts that rated “Hold” warned that SNAP may never become profitable. These analysts stated altogether that the stock’s targeted average price is around $23.67.

What Investors Think

Snapchat is just starting monetizing its users through advertising. Goldman Sachs predicts that the revenue of Snap Inc. will increase fivefold by 2018. Many have said that it will be a flop but there are many investors not turning their back in investing. There are people who believe that the stock price is perfect and there are many risks that need to be considered. A conspiracy also occurred when the founders of Snapchat tightened their grip on the company. They sold only nonvoting shares to retain the control among the founders.

Snapchat is popular among millennials who composed the big portion of the social media society. This will be a great help for the IPO of Snap Inc. and can also attract ad dollars. Right now the public market has all eyes on the IPO of SNAP. Let’s wait for the next days, weeks and months to come to know exactly what the new rating of SNAP will be.

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