Let’s talk about Snap, the business behind Snapchat and those bizarre Spectacles. The company went public today and shares closed for the day 44 percent higher than its pricing at the open. The IPO is the largest ever for a Los Angeles-based company and Snap currently enjoys a market cap almost three times as large as Twitter. (When the market closed today, Snap’s stock was at $24.48 with a market cap of $28.33 billion.)
Where the five-year old company goes from here, however, is unclear. There is widespread lack of confidence in Snap among financial analysts and investors, and the company faces serious challenges. User growth has declined sharply following Facebook’s all-out assault on Snapchat’s core features, which have been cloned to great success on Instagram Stories and more recently on WhatsApp in a new feature called Status.
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