Snapchat stock jumps 20% in second day of trading

04 March, 2017, 00:34 | Author: Alicia Barber
  • Snap Faces Tough Growth Questions on Roadshow

Rumors of the new product development arrive just as Snap is set to price shares for its IPO today, and then open trading on the New York Stock Exchange tomorrow, reports the Times, in what is expected to be the biggest tech IPO since China's Alibaba went public back in 2014. Snap, by the way, lost more than half a billion a year ago.

As Thursday progressed, SNAP shares rose from $24 to almost $26, before coming back down to about 50 cents above the opening price. The roughly 50 million shares are designated for new Snap IPO investors who do not now have a stake in the company, the sources said.

Despite a almost seven-fold increase in revenue, the Los Angeles-based company's net loss widened 38 percent previous year.

Technology firm Snap Inc. surprised analysts and investors with its long-awaited initial public offering Wednesday, which raised almost $3.5 billion - substantially more than Wall Street expected.

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.

NBCUniversal courted Snap co-founder Evan Spiegel for the past year, CNBC said, and both companies have been working on deepening their relationship.

Stockpile, a full service brokerage that allows you to give shares of stock in the form of a gift certificate, saw incredible demand for Snap shares on Thursday.

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Saint Francis High School on Miramonte Avenue in Mountain View won't divulge how much of the institution's endowment fund is invest in Snap, but tech news website, The Information, reported that the school could rake in tens of millions of dollars in profit.

All of this is pretty similar to one other IPO: Facebook's.

A price of $17-per-share puts a valuation of $23.8 billion on the 5-year-old company, based on the 1.16 billion Snap shares that remained after Wednesday's offering. That, in turn, had created the biggest stir since Facebook made its debut on Wall Street in 2012.

They each planned to sell 16 million shares, suggesting that they would each see $272 million.

Of course, it's not clear how many friends bought in, and in what size, and how their buys compare to those of "certain institutions" or existing investors that Snap might have sold the shares to instead.

In 2013, Facebook offered to buy the company from Spiegel and his co-founders for $3billion - an offer they turned down.

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