Today's the big day for Snap Inc., the parent company of dick pic app Snapchat and some confusing drone project: It's set to begin trading on Wall Street today after the company priced its IPO at $17 a share. In response to the protest, Snap released the following statement: "We've been very grateful to be a part of this creative community for over the last four years and we've worked closely with local schools and nonprofits to be a good neighbor". Snap could also sell an additional 30 million shares to its underwriters at a discount on the $17 offering 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. Snap stock rose another 3% throughout the day on Thursday, closing at $24.48 per share and valuing Snap at $28.3 billion.
The company started in 2011 and has been one of the fastest-growing social networks ever with more than 150 million daily active users, according to regulatory filings.
The company has been vague on its plans to lead and monetize image-driven conversations, but has suggested investors put faith in the vision of its cofounder Evan Spiegel, whom it introduced in its investor roadshow as a "once-in-a-generation founder". Snap's stock popped when it went public on Thursday morning.
The Wednesday pricing makes Snap's IPO the largest in the US since Alibaba went public in 2014 and could give the recently slow market for technology IPOs a boost.
It's incredibly risky to bet on an ad-supported company that lost $514.3 million previous year on revenues of $404.5 million.
Right now, Snap looks more like Twitter than Facebook.
Previous year 11 Bay Area companies went public, raising $1.2 billion. Mountain View high school to make $50 million in Snap IPOBarrett Daniels is an IPO consultant, focused on tech.
A drone could represent another growth opportunity for Snap as competitors continue to clone its breakthrough feature: the ability to compile disappearing photo and video Stories that users can decorate with filters, effects, and other designs. The majority of stock sold went into mutual funds, where they are supposed to remain in the long term.