Snapchat parent Snap valued at $24 billion after IPO
Snap's IPO was priced at $17 after the market closed on Wednesday. Snap becomes the largest tech IPO since Facebook went public five years ago. There are signs of demand for the offering. The IPO was priced $1 more than anticipated. Despite the higher than expected pricing, the company lost $500 million last year as it tries to grab a foothold with its advertising. Earlier this month, we told you that Snap is working on a way to use the Snapchat AR Lenses feature for ads. The filters, which turn you into a puppy dog, a motorcycle cop or an alien, are being tested for ads. A smart version of the filters will allow any backdrop to turn into an animated billboard for a specific product.
Getting the IPO priced is only half the battle. Now, investors will wait with baited breath to see where the shares open Thursday morning. Trading on the NYSE under the symbol SNAP, the multiplier effect has already made millionaires and multi-millionaires of those who got into the stock early. And if the IPO hits a home run, we could see other private tech giants turn to Wall Street. The most eagerly awaited is Uber, which is the largest private company in the world with a valuation above $50 billion. Airbnb, with a valuation above $25 billion, is also a prime candidate to go public.