Snap, a ‘disappearing messages app’ turned camera company, is flying high on the New York State Exchange with a valuation of whopping $38 billion at the end of second day of trading and sitting at the front row are its co-founders Evan Spiegel and Bobby Murphy.
Snap Inc. adapted and evolved, because had it remained just an app that allows disappearing messages, often used as a ‘sexting app’, chances are it would have been dead by now or on head-bumped on the sidelines by other similar apps. Spiegel got the idea for Snapchat while pursuing a school project at Stanford. He dropped out of Stanford to launch the app. He joined arms with Murphy, who was his sometime fraternity brother at Stanford. They introduced Snapchat in 2012. In 2013, Facebook offered to buy Snapchat for $3 Billion. Looking at their current trading scenario, it was a sound decision of not letting it belong to Facebook.
Spiegel took his company public on Thursday. Snap Inc is the parent company behind Snapchat, is currently valued at $ 38 billion. It has been two days but by the looks of it they are booming sky high.
Snapchat debuted at $17 a share. On the very first day, New York State Exchange trading of Snapchat closed at $24.48 a share. On the second day of trading, Snap Inc. shares closed at $27.09 per share thereby garnering the company a valuation of $38 billion. This means that it is placed above renowned brands like – Target, Delta, eBay, Twitter and Hilton. The company’s market value has shot higher than Intercontinental Exchange (parent company of New York State Exchange).
Both the co-founders are doing extremely well for themselves. Evan Spiegel made almost $6 billion this week. Bobby Murphy’s wealth is also noted to be around $5 billion. Both of them are considering selling 16 million shares each. Spiegel is now worth more than twice above Oprah Winfrey.
Considering the overwhelming positive response received at the market is building the company’s momentum, one cannot ensure success over the long haul. There are a few unanswered questions regarding the future and growth of the company.