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Snap taps its IPO price as it continues to crash
2014年01月10日
Update: It happened! Snap fell down to its IPO price (for a few seconds) of $17 per share after its continued steady march south over the past several weeks. The company is now barely holding just above its IPO price.
Snap’s last earnings report resulted in a disaster, and while the company still managed to stay above $20 for an extended period of time, a string of bad days for the market — and likely increased skepticism for the company’s future among the rest of the bundle of growth stocks — is putting increased pressure on its price. There have been a slew of smaller IPOs since Snap as more and more companies try to get out the gate, but especially for non-traditional ad-driven companies (looking at Pinterest, for example), it may affect the future of the so-called IPO window being “open .”
We’re going to get another heat check on investor appetite in the next few weeks with Blue Apron, which filed to go public earlier this month. Like Snap, Blue Apron — a meal delivery service that’s as much a consumer service as it is a complex logistical operation — showed a growing business while logging a major loss in the most recent quarter. But Blue Apron also showed it at least has the capability of being profitable, with a $3 million profit in the first quarter last year.
This major decline might not be something that’s wrong on an absolute basis, since $17 is the price that Snap selected as a company going public. But these prices are set to raise as much money as they can while ensuring a “pop” of around 20% or more, making sure investors have an opportunity to lock in some gains. So, for the most part, we can call Snap’s IPO a “success” given its pop, even though the company’s shares have come crashing down to earth. It’s not great for the rest of the people that got into Snap, and it certainly isn’t good for the perception of the company as a potential growth stock like the traditional FANG (Facebook, Amazon, Netflix and Google) bundle.
There are some implications for Snap’s stock decline — namely, a lower stock price can make it harder to attract talent because compensation packages tied to those prices start to become less valuable. Snap faces competition from other networks like Facebook, which is increasingly copying Snap’s portfolio of features and products. Imitation is the sincerest form of flattery, but for a company that is trying to pitch to advertisers that it’s a unique prospect with high engagement, having a massive company with resources and a known ad product can make life increasingly difficult Dedicated Private Cloud.
The stock continuing to tumble further below $17 is, of course, a Very Bad Sign — both for Snap and companies trying to offer new kinds of advertising pitches beyond Facebook and Google. But it did make a quick rebound after hitting $17 for a very brief moment in time. The market in general has had a bad few days, so we’ll see how this kind of behavior lasts.
Snap’s last earnings report resulted in a disaster, and while the company still managed to stay above $20 for an extended period of time, a string of bad days for the market — and likely increased skepticism for the company’s future among the rest of the bundle of growth stocks — is putting increased pressure on its price. There have been a slew of smaller IPOs since Snap as more and more companies try to get out the gate, but especially for non-traditional ad-driven companies (looking at Pinterest, for example), it may affect the future of the so-called IPO window being “open .”
We’re going to get another heat check on investor appetite in the next few weeks with Blue Apron, which filed to go public earlier this month. Like Snap, Blue Apron — a meal delivery service that’s as much a consumer service as it is a complex logistical operation — showed a growing business while logging a major loss in the most recent quarter. But Blue Apron also showed it at least has the capability of being profitable, with a $3 million profit in the first quarter last year.
This major decline might not be something that’s wrong on an absolute basis, since $17 is the price that Snap selected as a company going public. But these prices are set to raise as much money as they can while ensuring a “pop” of around 20% or more, making sure investors have an opportunity to lock in some gains. So, for the most part, we can call Snap’s IPO a “success” given its pop, even though the company’s shares have come crashing down to earth. It’s not great for the rest of the people that got into Snap, and it certainly isn’t good for the perception of the company as a potential growth stock like the traditional FANG (Facebook, Amazon, Netflix and Google) bundle.
There are some implications for Snap’s stock decline — namely, a lower stock price can make it harder to attract talent because compensation packages tied to those prices start to become less valuable. Snap faces competition from other networks like Facebook, which is increasingly copying Snap’s portfolio of features and products. Imitation is the sincerest form of flattery, but for a company that is trying to pitch to advertisers that it’s a unique prospect with high engagement, having a massive company with resources and a known ad product can make life increasingly difficult Dedicated Private Cloud.
The stock continuing to tumble further below $17 is, of course, a Very Bad Sign — both for Snap and companies trying to offer new kinds of advertising pitches beyond Facebook and Google. But it did make a quick rebound after hitting $17 for a very brief moment in time. The market in general has had a bad few days, so we’ll see how this kind of behavior lasts.
Posted by mbrella at
16:33
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Restaurant Uses Food That Was Headed to the Trash
2014年01月09日
rub and stub restaurantA restaurant in Copenhagen is giving new life to food that supermarkets have dubbed unworthy. According to BBC News embroidery logo, Rub & Stub eatery only serves food that grocery stores refuse to put on shelves based on expired sell-by dates, imperfections, and overstocking cloud. All proceeds from Rub & Stub go to charity and most of the staff is made up of volunteers. Only the project manager and head chef are paid by the funding nonprofit company Retro. Freeganism, a lifestyle choice in which people eat and use wasted products, has gained popularity in recent years, but this may be the first-ever full service restaurant that sources its food from what would otherwise go to the trash.
Would you eat at Rub & Stub CCIBA?
Posted by mbrella at
16:38
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Sour Patch Kids Gum to Hit the Market
2014年01月08日
sour patch kids gum
Christmas has come early for Sour Patch Kids fans , in the form of sweet and sour gum. According to Brand Eating, Sour Patch Kids and Stride have teamed up to created a new line of gum based on the popular candy Next Generation Firewall. Redberry and Lime are the only flavors offered for now, but here's to hoping that lemon and orange will roll out in the future book hotel hong kong! The gum is set to hit stores in January for $1.29 a pack.
Posted by mbrella at
17:37
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