After Snapchat went public the buzz quickly faded – but now it’s coming back. This is what you predicted before Snapchat went public.
After Snapchat went public, initially the stock was up – way up. However, the buzz faded in a second as analysts recommended against buying Snapchat shares: they were doubting whether the app compete with other social networks and become profitable, writes Business Insider in this article.
Now, tide is turning and analysts are once again recommending the purchase of Snapchat shares.
Snapchat is ‘an innovation leader in arguably the single fastest advertising medium today’, Jefferies analyst Brian Fitzgerald told Business Insider. An analyst at RBC Capital Market says: ‘We believe that if it sustains its current level of innovation, it can sustain premium growth for a long time and scale to profitability.’
What Did You Think?
Before Snapchat went public, we asked our students at the Erasmus University campus what they predicted about Snapchats IPO. This is what they said:
‘I’m afraid that, because there are no companies similar to Snapchat, they don’t know exactly what their shares should be worth. And so the stock value could decrease in a short space of time.’
‘I think it’s good. It shows that new tech companies like this can also join the "old school" stock market. It’s not just sending funny videos with rabbit ears, but it has really become a marketing tool’
‘I wouldn’t invest though. I mean, it’s just an app, at the end of the day. Right?’
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