Snap Inc’s pop in its trading debut Thursday made the company larger than many established corporations. Based on the opening price of $24, the Snapchat parent’s market capitalization — the total value of its outstanding shares — rose to $33 billion.
Snap is not yet profitable, and there are questions about whether its valuation is justified. None of the three analysts who had ratings on the stock on its first day advised investors to buy. “Investors in Snap will be exposed to an upstart facing aggressive competition from much larger companies, with a core user base that is not growing by much and which is only relatively elusive,” said Brian Wieser, an analyst at Pivotal Research, in a note.
