Snap falls to IPO price • Hacker News Board

Re: Snap falls to IPO price

#21

Post by prostoalex » Mon, Jul 10, 2017, 9:12 PM UTC

acchow wrote: post #14

habosa wrote: post #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 employ…

Did you try to subscribe to the IPO? It was not hard at all. I'm an "average" investory with a standard Charles Schwab trading account and subscribed to it with a few clicks of my mouse. I imagine anyone else could with their brokerage. It was oversubscribed tho, so I got half the quantity I wanted and sold shortly after opening.

Yep, same here. Fidelity account with pretty low balance but profiled for "aggressive growth", opted into their IPOs, and I got an invitation to participate. Blue Apron, too, among others.

Re: Snap falls to IPO price

#22

Post by __jal » Mon, Jul 10, 2017, 9:15 PM UTC

acchow wrote: post #17

mmanfrin wrote: post #5

Pardon 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.

Facebook is >$200 per user.

Facebook is a panopticon with a massive dataset on each user, and has a pretty substantial moat by way of users 'punishing' each other for leaving, among other competitive advantages.

Snapchat is a trendy app that could easily become uncool, and when it does, I don't see how users feel much of a penalty for leaving in the same way FB users do.

Re: Snap falls to IPO price

#23

Post by bdcravens » Mon, Jul 10, 2017, 9:16 PM UTC

skywhopper wrote: post #7

As 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.

I don't think the two are equivalent however.

Re: Snap falls to IPO price

#24

Post by mi100hael » Mon, Jul 10, 2017, 9:17 PM UTC

beager wrote: post #8

What 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?

It's not really clear to me, anyway. Instagram has been unabashedly poaching their features and users, and it's working really well. Snap needs to find new ways to continue to differentiate themselves with new features and maybe hardware like Spectacles, but with so much overlap in user-base between Instagram and Snapchat, I have no idea how they'll be able to keep Instagram from continuing to challenge their offerings.

Re: Snap falls to IPO price

#25

Post by gigatexal » Mon, Jul 10, 2017, 9:18 PM UTC

maybe twitter should buy them

Re: Snap falls to IPO price

#26

Post by prostoalex » Mon, Jul 10, 2017, 9:18 PM UTC

champagnepapi wrote: post #15

habosa wrote: post #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 employ…

Bothers me that institutional investors and other insiders get preferred pricing while retail investors get less favorable pricing.

> retail investors get less favorable pricing

until today, that is

Re: Snap falls to IPO price

#27

Post by jayess » Mon, Jul 10, 2017, 9:19 PM UTC

nikkwong wrote: post #19

beager wrote: post #8

What 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?

+1 this. I've asked multiple people and ideas are mostly mixed on what Snap's strategy should be going forward. Being a social app will definitely be a difficult play. IMO they could try to leverage their AR expertise to do, well, something. But social definitely seems like it will be tough. Good luck to the team though. It must be a stressful time there.

The fact that no one is responding with ideas tells you what you need to know.

Re: Snap falls to IPO price

#28

Post by davidw » Mon, Jul 10, 2017, 9:20 PM UTC

acchow wrote: post #14

habosa wrote: post #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 employ…

Did you try to subscribe to the IPO? It was not hard at all. I'm an "average" investory with a standard Charles Schwab trading account and subscribed to it with a few clicks of my mouse. I imagine anyone else could with their brokerage. It was oversubscribed tho, so I got half the quantity I wanted and sold shortly after opening.

> It was oversubscribed tho, so I got half the quantity I wanted and sold shortly after opening.

This seems like a pretty good reason to auction the shares in order to maximize the amount of money the company takes in. That they very rarely do has always seemed kind of dirty to me.

Re: Snap falls to IPO price

#29

Post by jayess » Mon, Jul 10, 2017, 9:22 PM UTC

korzun wrote: post #13

I think it is safe to say that the IPO was a total scam. The company was never profitable, and numbers never made any sense. I have a bridge in Brooklyn up for grabs (cheap) if you still think the valuation was based on ridiculous data points such as active users, etc. People already lined their pockets up and you will be reading another P.R piece on how great of a businessman Evan is within the next couple of months…

> I think it is safe to say that the IPO was a total scam.

Precisely.

Re: Snap falls to IPO price

#30

Post by likpok » Mon, Jul 10, 2017, 9:22 PM UTC

skywhopper wrote: post #7

As 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.

Facebook was profitable before it went public, and faced serious strategic challenges immediately post IPO (specifically, mobile was exploding and Facebook's mobile story was not good -- it didn't even have advertising).

I guess the meaningfulness of this data point is that people are dubious that SNAP will succeed long term. But that's somewhat tautological: if people thought SNAP would succeed, they'd buy it.