Venice-based tech company Snap – parent company of Snapchat and Snap Spectacles – hit the market today with their IPO.
At the end of day one, Snap shares closed up 44 percent at a high price of $24.48 per share. According to CNBC, more than 200 million shares were exchanged throughout the day – “which is roughly 10% of the total volume of trading on the New York Stock Exchange.”
The shares, which were originally priced at $17 apiece, but opened this morning at $25 per, were as expensive as $26.05 and as low as $23.50. The day closed with each share priced at $24.48, meaning that the company is now worth approximately $28 billion – putting its share price above giant public corporations including American Airlines and Macy’s.
Though this high share price does show the high interest in the company’s public offering and this marks quite an epic moment for the status of tech companies among other public companies, one question does remain: how long will this last? It’s important to consider the other competitors that could threaten Snap at this point, including Facebook (and Facebook-owned Instagram) and the Instagram Stories and live video capabilities. Snapchat’s daily user numbers did drop once Instagram’s stories feature was introduced, a clear indicator that their user base can be easily swayed.
Keep an eye on these shares and ask yourself: will the momentum carry through, or will it disappear as fast as that 10-second Snapchat you’re about to send?