“There are a lot of companies I don’t know or recognize, but Snap, I use the product, and know everyone – my friends, my co-workers, even my parents – uses it.”
Although some more experienced investors have avoided loss-making Snap, millennials were not alone in their hunger for shares of the company, which now has a market value of more than $25 billion.
Many sophisticated institutional money managers were also intent on getting a piece of the hottest tech IPO in years, despite concerns about the company’s slowing user growth and lack of voting rights for new shareholders.
Snap declined to comment on trading in its shares.
INFLATED LEVELS?
Companies with especially enthusiastic customer bases, such as action-camera maker GoPro Inc <GPRO.O>, social games company Zynga Inc <ZNGA.O> and English soccer club Manchester United Plc <MANU.N>, have in the past attracted fans to dabble in their IPOs.
But the wildly popular Snapchat – with an average of about 158 million daily active users – appears to be taking the enthusiasm to another level, some analysts and brokers said.
Originally posted 2017-03-13 15:17:55.
