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No cracks in Snap’s market debut as shares close 44% higher

Published 03/02/2017, 05:09 PM
Updated 03/02/2017, 05:20 PM
© Reuters.  A $28 billion company
SNAP
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Investing.com – Snap closed at $24.48 per share, a notch above its opening price of $24 and more than 40% higher than its original share price of $17.

Throughout the session shares of Snap Inc (NYSE:SNAP) traded well above its opening price and hit an intraday high of $26.05 per share, which seemed to reflect a few market participants’ view that the offering was oversubscribed.

According to Snap’s initial public offering filling, Snapchat, Snap’s main service, has a user base of 158 million people, who send 2.5 billion messages daily and spend 30 minutes using the service per day.

Despite the strong-user base and high user engagement, the company is yet to profit from its popularity, as it posted a $515 million loss in 2016.

"For the year ended December 31, 2016, we incurred a net loss of $514.6 million, as compared to a net loss of $372.9 million for the year ended December 31, 2015," snap’s IPO filing read.

At its closing price of $24.48, Snap fetched a valuation of around $28 billion.

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