Snapchats birth onto the stock market has not gone as smoothly as some expected. With the camera app becoming the biggest rage for smart phone users the past few years, most thought after its IPO its stock price would sky rocket. Well, after a few months of ups an down its price has now fallen under its IPO price for the first time, closing at $16.99 yesterday.
As Instagram Stories continues chipping away at Snap’s popularity, the stock dive is not too surprising. However, not all hope is lost. The company’s market cap is still about $23.8 billion, fully diluted. This is above Snap’s private market valuation, which was around $20 billion, fully diluted. (Fully diluted refers to all shares outstanding, including stock options.) Will Snapchat continue to fall, while the Facebook owned Instagram continues to gain popularity with similar or nearly identical features? We will stay tuned to see what happens.
Source: Tech Crunch