Millennials, considered to be between the ages of 14 and 35, might be a more hyped demographic that any in decades.
The generation has helped to power one of the largest and most eagerly awaited debuts in stock market, making its founders billionaires.
Investors are attracted to Snapchat’s hold on users that fall into the Millennials category. That group checks its app on average over 18 times daily. That has caused them to step up to the plate in Snap’s initial public offering helping to push the parent company of Snapchat up to a value of close to $24 billion.
The IPO places Snap as the most valuable technology company based in the U.S. to go public in five years, when Facebook launched its IPO.
It might also be a start of another wave of technology startups that are currently valued at over $1 billion and expected to go public over the upcoming five years.
The offering price by Snap was set Wednesday at $17 per share, one dollar higher than was in the first pricing range.
This pricing came as the stock market soared to another record high thanks to expectations of cuts in taxes, looser regulations and an increase in interest rates under the new White House administration.
Shares of social media giants Twitter and Facebook were up on the day Wednesday.
Those buying the offering of Snap did so even with warning signs being flashed by some about the company, which is California based. In 2016, the company lost over $500 million.
It explosion growth in users also appears as if it has hit a bump in the road. A decision also upset some larger investors as the shares will not have any voting rights, leaving full control in the hands of the founders of the company, who will retain power for many years even after they leave Snap.
However, when Snap starts trading Thursday on the New York Stock Exchange with the ticker SNAP, it will command a high valuation multiple that will be richer than Facebook, which last year earned over $10 billion.
The question going forward is if Snap will end up being as mighty as Facebook or will turn out like the embattled Twitter.
Much has riding on the offering by Snap including expectations it would lift the market in newer stocks. With its IPO, Snap has now moved ahead of the other tech stocks.
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