California high school makes $24M in Snapchat IPO

Brendan Mc Dermid | Reuters

IPO shares of Snap Inc. jumped on the New York Stock Exchange from $17 to $24.48 in the company's debut on Thursday.

In its IPO filing, Snap, the creators of Snapchat, defined itself as a "camera company" and after the release of its Spectacles, the company is now reportedly taking aim at drones. Facebook Inc.'s listing was plagued by trading errors with the shares barely gaining on its first day before falling 31 percent in the first year.

Nicole Bullock, the United States equities correspondent for the Financial Times, people were excited about the float because there had been a drought of big tech companies listing for the last few years. That's exciting, but might mean a lot more people need to practice their flying skills first. Grow through partnering. Grow. "They must continue to evolve - through their own knowledge and through acquisitions". To make money, Snap will have to boost its revenue per user, but ad buyers tell DiClemente that the company's ad products are hard for small and midsize companies to use, and "Snap's targeting capabilities are not almost as sophisticated as those of Facebook".

"The usage trends are largely the result of a shift in the primary use case of Snapchat", forecasting analyst Jaimie Chung said in a statement.

For starters, being a public company is very different from being a Silicon Valley startup and, with that, comes a certain set of expectations. Nevertheless, it looks like there's still some air left in the social media bubble. The photo-sharing site released a new tool previous year called Instagram Stories that lets photos and videos disappear from the site after 24 hours. Initial investors who were part of Snap's recruiting drive over the past few weeks posed a laundry list of questions and concerns to executives of the five-year-old company about the stock's potential, to sink or swim.

All eyes would be on Snap CEO Evan Spiegel right now-if anyone could find him.

Gartner analyst Brian Blau sees Snap continuing that focus. "It's clear that visual media is one of the most important communications mediums today".