Snap Inc., the parent company of Snapchat, is now a public company. You can buy a tiny piece of the
sexting messaging platform, but it'll cost you. Snapchat shares (SNAP on NYSE) were offered at $17 initially, but they quickly shot up to more than $25. That's a 47% increase in one day.
Snap founders Bobby Murphy and Evan Spiegel each pulled in about $272 million in cash with this IPO, and their remaining stock is now worth billions of dollars. All that with a kind of crappy Android app? The app's quality hasn't stopped people from using it. Snapchat is one of the most popular ways for the younger segment of society to communicate right now, and advertisers are desperate to get those eyeballs.
A strong opening day is not indicative of ongoing success, though. Facebook's stock was flat on opening day, but it has since posted strong growth (currently $136, IPO at $38). Twitter saw a 72% gain when it went live, but it has since fallen back to $15 (the IPO was $26). Maybe Snap Inc. can use some of this new-found wealth to develop a better Android app. That might keep people engaged.