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Snapchat launches IPO; closes 44% up on day one

Snapchat has debut its IPO on the New York Stock Exchange today, with a stock price of $17 per share, closing the day at $24.51, a 44% increase, reports TechCrunch. Overall, the company’s market cap is reportedly as high as $34 billion (fully diluted), higher than Twitter's $11.2 billion market cap, but lower than Facebook $350 billion market cap. Interestingly, Snapchat’s IPO somewhat resembles Twitter’s IPO launch, which launched at $26 per share, closing the day at $45 per share. However, over time Twitter's shares have since normalized with each share now worth about $15.8. Facebook on the other hand, had priced its IPO at $38 per share at launch, and is currently selling at $136.7. Note that last month Snapchat said that it planned to raise as much as $4 billion from the IPO with a market valuation of up to $25 billion, and said it would use the funding for acquisitions and other corporate purposes. It also plans to spend $2 billion with Alphabet over the next 5 years to use Google’s cloud computing services, on which it relies. As of Q4FY16, Snapchat claims to have 158 million Daily Active Users (DAU) worldwide, a growth of 48% year on year from 107 million DAUs in the same quarter last year. Of this, 68 million DAUs come from North America, 52 million from Europe and 39 million from the rest of the world. The company currently offers an image sharing app that auto-deletes photos after sometime, with other features…

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