Welcome to the madness that is March, and no I am not talking about college basketball but about the Snap IPO. We here at Orca have been anticipating this IPO for quite some time now and have promised to bring updates to our readers. Check out our last article on if it’s worth buying into the Snap IPO here.
So what is buying Snap going to cost you? Well less than a date to the movies, if you can get in early.
• Coming out at $17 a share/ Jumped to $24 on secondary market
• Valued over 24 Billion up, 4 Billion higher from previous valuation
• Snap will collect 4 Billion in cash from IPO because of overvaluation
• They are not giving any stock voting rights (Aka Evan Spiegel keeps control)
• They just passed Twitter as far as user engagement (Sorry, Trump)
Whaley Concerns
• Overvalued
• No voting rights
• No real profits
Personally, the only real concern from the above comes down to the no voting rights. “Overvalued” is a perception; a lot of Unicorn companies that have become public are listed as overvalued. As for the no real profits shown yet, that is also very typical, as stocks like Amazon have come under fire for the same reason. No voting rights, now that is Snap saying we will do “what we want, when we want” and this may make the stock very volatile as any news will sway its price either good or bad.
So Snap looks to be on track to be a wild ride, so will Snap bust your bracket or prove to be a Cinderella story? Only time will tell
