Snap made its long-awaited public trading debut on Thursday, and, for a company that isn’t sure when it will be profitable, didn’t flop at all. The Snapchat maker saw its shares jump from an IPO price of $US17 to more than $US24 by the end of the day, a 44% leap that made the it more valuable than the likes of Target, Kellogg, and CBS. It continued to rally on Friday.
So what does all of this mean for Snap’s long-term prospects? Well, as this chart from Statista shows, not too much. While some eventual tech giants have had huge openings, others have opened to less fanfare. Notably, Twitter’s 72% pop didn’t quite lead to a healthy business, while Facebook’s shaky first day didn’t stopped it from carving a path of destruction.
Snap has entered into a hungry market, but to justify its hot start, it will still have to prove it can keep the users and revenue flowing in — and that it can stop Facebook from cutting it off at the knees.