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Snap falls to IPO price

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Re: Snap falls to IPO price

#41

Post by WheelsAtLarge »

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.

Not everyone was able to buy at the IPO price. My friend was invited but could not buy any shares. BTW, being invited does not mean you'll be able to buy. It just means you'll be able to request shares.

Re: Snap falls to IPO price

#42

Post by beager »

dfrey wrote: post #31

snapchat baffles me. It's just another instant messaging platform except that they came up with the idea of messages that delete themselves after a time period. The problem is that this killer feature is easily subverted by taking a picture of your screen. So basically, they have provided an instant messaging platform with one extra useless feature.

More to the point, this "killer feature" is easily cloned by a competitor and shows that the product creates no competitive barriers. Coupled with the fact that the cloner has a much better idea of their users and can target ads much more successfully, this creates a long road for $SNAP.

Re: Snap falls to IPO price

#43

Post by wuliwong »

exelius wrote: post #33
bdcravens wrote: post #23

Earlier quoted context omitted.

I don't think the two are equivalent however.

Agree with you here -- Facebook had a well-formed mobile strategy, the only question was whether it would work. Once it started to work, the stock took off like a rocket. Snap is a much bigger question mark. So far their plan looks to be "Do what Facebook did, only for AR/VR". Except Facebook and Snap will be splitting the market; where Facebook had no competition and absolute dominance before they IPOed. Facebook is…

I haven't been following SnapChat too closely, I know they made some glasses not too long ago. It is surprising to me that they are trading on the ID that they will be more successful in AR/VR. I can't imagine have invested nearly as much into AR/VR as Facebook/Oculus. Amount invested doesn't mean success for sure but I expect Facebook to be at the forefront of AR/VR at least in the near future.

Re: Snap falls to IPO price

#44

Post by will_pseudonym »

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…

And they can also re-invest in the stock now, at these great sale prices.

“And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful” - Warren Buffett

Re: Snap falls to IPO price

#45

Post by charlesdm »

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 was having decent growth at the time. Snap is undergoing massive competition from both Instagram, WhatsApp AND Facebook. Personally don't believe in the stock. Perhaps at $5 to 7 a share I would buy in, but I'm not really seeing it.

Re: Snap falls to IPO price

#46

Post by acchow »

kartD wrote: post #34
acchow wrote: post #14

Earlier quoted context omitted.

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.

Thanks for the info, I think my next bank account is going to be with Charles Schwab ( I was waffling between Ally and Charles Schwab, but this is a useful feature for me and a good step up from Robinhood).

I was referring to the trading account, which is independent from the bank.

Tho Charles Schwab bank accounts are useful because they refund your ATM fees.

Re: Snap falls to IPO price

#47

Post by JumpCrisscross »

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.

To be fair, institutions are often negotiating with underwriters on the pricing. That kind of price discovery doesn't happen with retail investors.

Re: Snap falls to IPO price

#48

Post by acchow »

davidw wrote: post #28
acchow wrote: post #14

Earlier quoted context omitted.

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.

Google tried to be cheeky and go the auction way. It was wrought with problems.

As far as I can tell, all tech IPOs following that went back the traditional way.

Re: Snap falls to IPO price

#49

Post by mikestew »

will_pseudonym wrote: post #44
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…

And they can also re-invest in the stock now, at these great sale prices. “And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful” - Warren Buffett

Since we're pulling out pithy quotes, I have one: "the trend is your friend", and your friend is telling you to stay the hell away from this stock.

Re: Snap falls to IPO price

#50

Post by acchow »

beamatronic wrote: post #35
acchow wrote: post #16

Earlier quoted context omitted.

So this isn't true. Any average Joe could open a standard trading account and subscribe to the IPO.

Fidelity has a minimum of $100k or $500k to participate in IPOs depending on the specific IPO

Then I'd suggest going with etrade or schwab.
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