Shares of Snap Inc, the parent company of Snapchat, continues to rise on its second day of trading. Snapchat’s IPO on Thursday saw a 44% increase in price amid heavy volume. On Friday, NBC announced that they invested $500 million into the young Los Angeles startup. Snapchat provides a social network based on ephemeral messaging services. Pictures and texts shared through Snapchat disappear after 24 hours.
Snapchat's 'Stories' feature allows users to share video clips and pictures to everyone in their network: ephemeral Facebook with the levity of Twitter. It's popular among young professionals who want to share fun moments among friends, and sometimes family. Unlike Facebook, there aren’t 'likes' or comments to a post. Snapchat’s popularity and its “newsfeed-equivalent” interface allows fitting advertising placements, which has yet to experience significant prominence.
Snap Inc has yet to make a profit, and some believed that it was overvalued pre-IPO; however, the market and the general consensus is now otherwise. Snap’s first product outside of its namesake software is a pair of spectacles, which was nothing more than a camcorder attached to a pair of glasses. It’s current financials are tempered, but the company has an active user base, including myself.