Snapchat IPO

This week the social media company Snapchat had it's IPO and it resulted in the founders making an easy 272 million each. The co-founders of the company, Evan Spiegel and Bobby Murphy, sold only a portion of their shares though which means they really benefitted from the initial 10% increase in share value. The duo kept a majority of their shares and they are now valued around $3.2 Billion. It is officially now considered the largest IPO since 2014, the same year that Facebook made its Initial Public Offering. With this new milestone many Snapchat employees will most likely leave the company either to start new companies or possibly even retire since it is no longer a start up. Silicon Valley and business is a very unique atmosphere, many people are not looking to work for big corporations but rather small start ups which have huge upside potential as well as a very relaxed atmosphere. Going forward Snapchat must shift it's position to making sure that they can maintain the top talent since they already have it. Also now that they are a publicly traded company they should begin looking for new revenue streams. Currently the app does not support ads and doesn't require a membership so look for a correction after the initial jump in sales price. Wall Street has always had a problem valuing these larger tech stocks and I am expecting a similar situation to Facebook, not like twitter.