Snapchat owner shares 'priced at $17' despite making losses

Snapchat owner shares 'priced at $17' despite making losses

Snapchat owner shares 'priced at $17' despite making losses

The share price rocketed 44% higher when trading began Thursday.

Traders at the New York Stock during the Snap Inc. float. That was well above the $14-$16 range initially expected, a sign of strong investor demand for the five-year-old firm.

Snap sold 145 million of its 200 million initial shares Wednesday, locking up the remaining float as a measure to mitigate potential volatility that often comes with short-term investors.

The owner of Snapchat, an app popular with young people for its disappearing messages, raised US$3.4 billion in its initial public offering on Wednesday, more than the US$3 billion Facebook offered to pay for the company in 2013.

"Snap's IPO has spurred great interest because few tech companies went public last year amid a shaky market, and none have debuted on the stock market this year", the report said.

That will reportedly give Snap a market value of almost $24 billion, making it the largest USA tech IPO since Facebook.

Demand for the shares was almost 12 times oversubscribed - and this from a company that not only has never made a profit (and lost $500m last year).

An app once thought to be for little more than sexting is about to become the biggest new publicly traded tech company in years.

Though Spectacles marked Snapchat's foray into the gadget sector, as well as the company's pivot from an ephemeral messaging app to a self-described "camera company", the smart sunglasses launch may be just the beginning of its hardwareambitions.

"The investors that we spoke to who were interested in buying the shares said that it was really a bet on the managment's ability to. segue this company into a lasting concern".

Mountain View-based Saint Francis High School could win big after Snap Inc.'s shares soar in IPO's first-day trading.

But now, CEO Evan Spiegel has to prove Snap is more like Facebook than Twitter.

Facebook's Instagram is a major rival to Snapchat. The company now has about $2.3 billion in cash to use for acquisitions, new hires, product development or whatever else it chooses to do. Snapchat had 158 million daily users in the most recent quarter, compared to Facebook's 1.23 billion daily users.

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