Snap shares closed at a 12% loss, the lowest since the company’s IPO last week,
Snap shares fell by 12% on Monday, closing at the lowest level since the company’s IPO last week.
The Snapchat parent company went public last Thursday which saw its share price rise by 44% from $17 to $24.48. The hotly anticipated IPO was the largest US tech IPO since Facebook in 2012.
Snap also jumped another 11% on Friday, meaning that the IPO has still seen huge progress since going public and currently sits at a share price of £23.77. The company is currently valued at roughly $30 billion.
Scott Webb president of Avionos said: ““Five years ago, people would’ve never guessed Snap Inc. would be as technologically advanced or widely used as it is today. One of the biggest contributors to this rapid growth is that the company has kept their customers at the heart of each update. Snapchat has expanded from basic picture messaging, to advanced filters, payments features and even wearables to accommodate evolving demands.”
“As Snap prices their IPO, the valuation of the company and their future success can be linked back to this innovative strategy and a consistent devotion to experiences that engage users and meet their changing needs.”
In a controversial move, investors have not been given any say in the company’s future, as voting rights have been retained by the company. At the same time, the company also warned that it might never be profitable.
The lack of voting rights has prompted a group that represents large investors to request that Snap be barred from certain indexes. They believe that because Snap is tapping the public market, not giving investors a say is unfair as they will be unable to control the company’s future or the pay of its executives.
MSCI index provider said that Snap met the criteria for the MSCI USA on March 2nd but rescinded this decision on the 3rd. Snap’s inclusion is being reconsidered in May the MSCI said.
The MSCI is also asking for investors opinions on whether companies without voting rights should be eligible for indexes.