Shares of Snapchat parent company open at $24

Shares of Snapchat parent company open at $24

Snap, the social network that says it's really a camera company, closed its first day of trading up 44 percent from its initial offering price of $17.

The Snap IPO gives the company's co-founders, CEO Evan Spiegel and CTO Bobby Murphy, stock holdings now worth around $US5 billion each. The company expects to raise somewhere around $3 Billion at a valuation between $19.5 billion and $22.3 billion. But the company still recorded a loss of $514.6 million previous year.

But some experts see that stiff competition, as well as the fact that the company lost $514 million previous year, as potential challenges for maintaining the high stock price.

Unlike in most listed companies, people who buy the floated shares in Snap will not get any voting rights.

The unusual makeup of Snap IPO's also has sparked a review by an investor committee with the U.S. Securities and Exchange Commission, according to a Reuters report. "It certainly pushes the limits on governance". 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".

In addition to his stock based wealth, Spiegel earned $503,205 in salary in 2016, which research firm Equilar said makes for the biggest salary of any CEO of a privately held company prior to its public market debut in the past six years.

"[Investors] saw Facebook, they saw Twitter back in the day".

As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. The company expressed these sentiments on Monday, and they are a mark of Snap's confidence in its own IPO that is scheduled to take place in a couple of days.

But Snap's core business is still its messaging app, which has a much smaller audience than rival Facebook.

Now, it is trading more than three times its IPO price, near a record high.

Snap's secret weapon, according to the company and some analysts, is that its users are younger and incredibly engaged. All that matters, he says, is "Generation Z uses it, and uses it aggressively, because advertisers are clamoring for their dollars".

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