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Snapchat Parent Stock Surges in Market Debut
The stock of Snap Inc., the parent company of messaging app Snapchat, rose early in its stock market debut on Thursday.
Snap shares, trading under the ticker symbol SNAP on the New York Stock Exchange, opened at $24, up 41 percent, and then traded above that price. That gave the company a $33 billion valuation at its open.
The company had on Wednesday priced its stock at $17, giving Snap a valuation just short of $24 billion. That was well above the $14-$16 range initially expected, a sign of strong investor demand for the five-year-old company.
The Wednesday pricing makes Snap's IPO the largest in the U.S. since Alibaba went public in 2014 and could give the recently slow market for technology IPOs a boost. Snap offered 200 million shares in its IPO.
Based in Venice, Calif., Snap is best known for its app offering disappearing messages. But CEO Evan Spiegel describes the business as a camera company that offers a content platform and sells camera-enabled glasses called Spectacles.
Snap lost nearly $515 million in 2016 on revenue of $404 million. In December it reached 161 million daily active users around the world, up 46 percent from the previous year.
This article was originally published by The Hollywood Reporter.