Snap falls to IPO price
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Snap falls to IPO price
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Re: Snap falls to IPO price
#2I think Snap's stock price will continue to fall (to under $10) and then at some point it'll be acquired, possibly by an asian company or investment group.
Re: Snap falls to IPO price
#3Lock-up expires 29 August [1]. On the other hand, they have $3.2bn of cash and short-term investments (as of 31 March) while burning about $600MM of cash from their operations (FYE 31 December 2016) a year. That's 5 years to get it right.
EDIT: insider lock-up at T+150 comes in at the end of July.
[1] http://www.nasdaq.com/markets/ipos/company/snap-inc-899497-8...
Re: Snap falls to IPO price
#4Not sure this is really news worthy.
They've been heavily shorted for a while now and their puts are expensive. But really 1 Billion new shares could flood the market in just a few more weeks.
To put it in perspective I believe Twitter, the other poster child for giving away options, had about half that amount.
Even the IPO underwriters are starting to crack. Credit Suisse used the stock drop to keep an "outperform" rating on the stock while lowering its target from $30 to $25.
IMHO Snap will do just fine for hte next year. They are big enough that companies will carve out a piece of their marketing budgets for Snap. It won't be until a year later when they have enough data on how well their Snap advertising is working that they'll decide if its worth it or not.
Re: Snap falls to IPO price
#5Pardon my language but: no fucking shit. $20bil was unbelievably overpriced.
This is the one major tech stock that I simply do not get. ~$125 a user is insane.
Re: Snap falls to IPO price
#6Lock-up expires 29 August [1]. On the other hand, they have $3.2bn of cash and short-term investments (as of 31 March) while burning about $600MM of cash from their operations (FYE 31 December 2016) a year. That's 5 years to get it right. EDIT: insider lock-up at T+150 comes in at the end of July. [1] http://www.nasdaq.com/markets/ipos/company/snap-inc-899497-8...
> Lock-up expires 29 August [1].
Its actually the end of July for the first and most important IPO lockup expiry.
> The first key lock-up date for Snap will occur roughly 150 days following the IPO. At that point, pre-IPO investors, such as company insiders, will be allowed to sell their shares. The second major lock-up date applies to 25% of the shares that were offered in the IPO itself. Of the 200 million total IPO shares, 50 million of the shares will be restricted for one year.
Re: Snap falls to IPO price
#7As skeptical as I am that Snap will ever be a moneymaker, this data point is not meaningful in any way. Facebook traded below (often _well_ below) its IPO price for the first 15 months on the market.
Re: Snap falls to IPO price
#8What does $SNAP need to do to deliver on the hype? Is there anything that can make $SNAP a good investment for anyone other than the parties involved in trading the IPO?
I tend to be bearish on $SNAP in general, but I'm interested in the discussion. How do they right the ship and boost back up to that $25-30 range? What's their play?
Re: Snap falls to IPO price
#9Financially it does not matter for the founders that much anymore. Significant wealth has already been transferred and cashed out:
Re: Snap falls to IPO price
#10$17.00 was the IPO price but only for investors with access. Your average investor with an eTrade account saw a price of $24.00+ when the market opened that morning, and it hit almost $27.00 that day. So those folks have seen a 30%+ drop since IPO.
Given that Snap paid out billions in IPO bonuses to executives and other employees, it's turned out to be a pretty big wealth transfer from retail investors to Snap employees.