Snapchat pops in Wall Street debut for messaging app

March 03, 2017 09:01

Snapchat owner Snap Inc rode a wave of euphoria in its Wall Street debut today as investors sent shares of the popular messaging app soaring.

In midday trade, Snap jumped 47 per cent to $25.06 in its market debut after raising USD 3.4 billion, in the richest US tech company listing since Facebook in 2012.

The California startup known for its disappearing messages priced its offering Wednesday at $17 to give it a market value of $24 billion, which would rise even further with the jump in its share price.

Analysts have been mixed on the future of Snap, amid debate on whether it can mimic the success of Facebook or end up in the tech junkyard.

Debra Williamson of the research firm eMarketer said Snapchat inspires the same kind excitement as Facebook in its early stages.

"This is a company that is fundamentally changing communication," she said.

"This makes Snapchat as exciting a property as Facebook when it launched. And it has a lock on the youth market which is critically important for new technologies."

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