Snap has finally given a price for its IPO and it sets the company's valuation to about $24 billion. It's price per share is set at $17. The current IPO figures is more than the previously set range which was $14 to $16 and at a valuation of $19.5 billion to $22.5 billion. Snap's final IPO figures does exceed expectations considering some issues that the company has been criticized for.
Snap's Business Moves In 2017
IPO stands for initial public offering and it refers to the first time that the stock of a company is offered to the public. As for Snap, the company filed to go public early last month. It shows the rapid acceleration of the business' advertising which reached $400 million in 2016 from a $59 million figure just a year prior. As per CNBC, Snap will start trading Thursday of this week.
Nevertheless, the company also revealed that while it now has 150 million users who are active daily, the growth of that number is now slowing. Tech Crunch says that Snap executives alongside its CEO Evan Spiegel spent the past weeks meeting with investors from different cities. The Snap team pitched the company's stocks and gave clarifications regarding the spreading concerns.
Concerns Regarding Snap's Business
Snap's IPO figures somewhat exceed expectations considering some sort of concerns revolving around the business. As mentioned, user growth has already started slowing down. The company is also still a rising star. Additionally, there's also the issue regarding Snap's dependence on third-party services. Apparently, the company still relies and spends so much money on Google and Amazon for its cloud and web services needs.
Snap's IPO Investment Conditions
The thing about Snap's IPO is that the company sells non-voting share. This means that investors who are buying into Snap won't have any say on the company's direction. Investors will just be betting that Snap will continue to grow positively. Overall, Spiegel will still be the one who's in control of the company's future.