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Snap Jumps in Debut After App Maker Raises $3.4B in IPO

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Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#181

Post by bronz »

>Shares opened at $24 and traded as high as $25.42 apiece Thursday, giving the company a market valuation of about $29 billion

there is no way for me to look at that and not be dumbfounded. some companies are unprofitable but still have a clear mechanism through which they could make money. tesla sells cars, for example. twitter and snap on the other hand have no way to make enough money to justify the hype. they can sell peoples data -- and that is a form of revenue that may face massive backlash and cooling very soon. this market cap is insane and we are in a huge bubble.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#182

Post by darkerside »

chimeracoder wrote: post #174
jmharvey wrote: post #134

Earlier quoted context omitted.

It could be an indicator that a lot of people invest without regard for foundational questions like "does this valuation make sense" or "does my ownership interest grant me any control of the company?" And I'll be the first to raise my hand on that front. On the face of it, I'm not really interested in owning a stock like this. But I've stopped picking stocks entirely, now I just invest in the stock market through in…

The $SNAP price isn't being driven by index funds. Index funds also aren't about blindly investing ("we don't really care what...") - it's about delegating that trust. For example, SPY is delegating that to a trusted entity (you're trusting that the S&P 500 will remain a meaningful measure of the US stock market).

"Delegating to a trusted entity" isn't different from "blindly investing"/"buy at any price". jmharvey's point stands.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#183

Post by ChuckMcM »

econner wrote: post #156
ChuckMcM wrote: post #99

Earlier quoted context omitted.

They had a pretty large participating contribution (50M shares as I recall) so that is a bunch of money that paid off some folks who might have been skittish. I was surprised to see as large a bounce as there was. And it has no doubt realigned the world view of a bunch of Snapchat employees[1]. To your last point I can't imagine they are going to talk earnings in a GAAP context unless they are generating lots of free…

> They had a pretty large participating contribution (50M shares as I recall) so that is a bunch of money that paid off some folks who might have been skittish. Could you explain what this means a little more? What is a participating contribution in this context? Are these shares employees were able to sell in the IPO?

The s1 listed 50m shares as coming from existing share holders but they did not break it out. Usually that is employees with vested shares and occasionally other investors. Was more common in the dot com IPO's but Zynga did that too as I recall

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#184

Post by paulpauper »

dovin wrote: post #61

Interesting. Bitcoin is trading at an all-time high today. I guess the fears of a tech bubble collapse have been staved off for a little while, at least.

People have been predicting bubble and collapse since 2012...stopped clock theory

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#186

Post by squeaky-clean »

MegaButts wrote: post #128
komali2 wrote: post #112

Earlier quoted context omitted.

Facebook is a better messaging platform than SMS, for me, because I have friends spread across the globe that I can contact with a simple internet connection.

I sometimes feel like nobody uses Google Hangouts anymore, which also integrates with SMS so you don't have to bother with multiple applications.

So does the FB Messenger app (Android at least) as of a few months ago.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#187

Post by TillE »

ChuckMcM wrote: post #116
linuxkerneldev wrote: post #34

This $27.8 billion dollar valuation tells me that somewhere along the line, my job and lifestyle have caused me to detach from a significant chunk of society. I've never used Snap or their platform. I don't even really know what the benefit of their service. I am curious if I'm in the minority or if there's lots of developers like me who aren't able to comprehend these valuations.

I've got really bad news for you, every month older you get the more likely you are to experience this. And the next thing you know you'll be tuning through available radio stations and find that you can't find a station with music you like on it :-) Just don't succumb to EOG[1] :-) [1] https://www.youtube.com/watch?v=bewKPi9gdT4

Radio is dead, grampa.

Seriously, outside of top 40 and hip-hop stations, I think nearly everything is geared towards older people.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#188

Post by Erik816 »

ashark wrote: post #141
rubicon33 wrote: post #140

Earlier quoted context omitted.

You are not alone. I have been struck with amazement at the rise of apps like Snap, Twitter, and Instragram. They have captivated an entire generation, leaving me on the sideline. As a developer, I suppose I'm not the most social being on the planet, but it does concern me that I have become "detached" from everyone else. I spoke with an Uber driver the other day whos 14 year old son has 700,000 instragram followers…

Welcome to the future. The economy's mostly driven by incredibly invasive advertising, normalized spyware, and kids sending each other naked pics. It's far worse than any 80s film ever imagined.

The "economy" is much, much larger than a few social networking apps.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#189

Post by unholiness »

Economics novice here. How did we get such a huge difference (40%!) between the IPO price and the current price, when both sides had $3.4 billion at stake on getting that price "right"? Is there some huge information disparity here?

Moreover, if investors feel that $24 a share is a fair price, why weren't they swooping in before the IPO and, say, offering $20 a share for the whole chunk?

Sorry if this seems like a ridiculous question, but it seems to me like there should be some extremely large free market force (on the order of $1.4 billion) preventing the founders and employees from missing out on all that money. Am I wrong?

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#190

Post by squeaky-clean »

probe wrote: post #84

The SNAP thesis I like the best is - "Twitter-like growth with FB ARPU". The monetization potential of this company is massive (geofilters, sponsored content, hardware with spectacles, etc.) and there's no direct comp for that. Pokemon Go showed us the bleeding of digital to physical, and Snap has the potential to be the first company to unlock value from it (ex. geofilters). Plus you can view SNAP as a call option o…

> Pokemon Go showed us the bleeding of digital to physical

Niantic had another game (Ingress) that Pokemon Go is pretty much a copy-paste of. Compared to P:GO, Ingress was/is not very successful.

I think this only shows us how desperate people still were for a real-life Pokemon game (and also one that didn't require buying gaming specific hardware). They put up with a terribly unstable app with few features that got less stable and removed more and more features over time.

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