By the time you read this, Snapchat will already be a publicly traded company. The “camera” company (according to their IPO filing) will sell 200 million shares, which you can totally buy later in the day. They’re doing this to raise money and grow their business beyond just a simple mobile app and pair of connected glasses.
Before you invest in $SNAP, however, there are five key data points about the company you need to know:
How much are the company’s shares initially worth?
$17. Morgan Stanley and Goldman Sachs, Snap Inc.’s underwriters, will allow their customers to purchase an allotted amount of shares at this price.
How much will the company be valued based on the initial share price?
$24 billion. Snap Inc. looked to be valued at a billion or so dollars less than this at first, but the company will be valued at this amount.
How much will the company raise during their initial public offering?
$3.4 billion. This money will help Snap Inc. expand their business, diversify their offerings, and hopefully turn a profit. It’s worth noting that the 200 million shares being sold do not have any voting power, which is left to the company and their board of directors.
When can I buy $SNAP?
If you’re a Goldman Sachs or Morgan Stanley customer, chances are you already put in your order. If you’re just a regular investor with a brokerage,
you will be able to purchase $SNAP later today you can buy $SNAP right now.
How much will $SNAP be when I buy it?
It will be initially valued between $23 and $23.50 $SNAP is currently trading at $24.84 as of this writing. It will likely be more than $17 a share. The stock’s opening price, however, is determined later in the day, though it certainly will remain in the double digits. If you want to buy it around $17, however, you’ll have to wait for it to go back down to that level (if it ever does) over time.
How much money is Snap Inc. losing?
The company posted a net loss of $514.6 million last year. This is after taking in revenue (mostly from ads) of $404.5 million. The company is far from profitable.
We’ll continue to update this post during $SNAP’s first trading day, as it becomes open to all investors and traders. Until then, be sure to do your research about the company if you want to invest in them. While it might seem exciting to buy a brand new stock that’s being talked about everywhere, learning about the company’s financials and future outlook is essential to all successful investments.