“One of the non-fundamental reasons driving the stock is that many millennials purchased Snap shares at inflated levels due to their preference for the product,” said Shebly Seyrafi, managing director at FBN Securities. “That is, not due to a real understanding of the number or valuation.”
Snapchat’s users, mostly in the 18-34 age range coveted by advertisers, spend an average of 25 to 30 minutes on the app and visit it more than 18 times a day, according to the company, making it more visited than any other social media platform.
“Snap is tapping into the pride of ownership (for millennials) which we don’t see often in the stock market,” said Dan Schatt, chief commercial officer at Stockpile.
Snap’s IPO gave Stockpile its biggest single day since it launched in 2015, nearly 10 times the service’s daily average in transaction and sales.
“Snap is offering the comfort of buying something that you know so well, understand and use it every day, which is what these young investors want,” said Schatt, whose teenaged daughter and son also bought Snap shares with his approval on Stockpile.
Originally posted 2017-03-13 15:17:55.
