Prof. Mike Wade discusses the Snapchat IPO
Despite Snap’s (the parent company of Snapchat) strong performance on the stock market following its IPO last week, serious questions linger about its future. Its $28 billion valuation can be credited to its large, demographically attractive user base and status as a disruptor in the social media space. However, investors seem to be wavering. Snap’s shares dropped below its post-IPO price on Monday and continued to fall on Tuesday. Five of seven analysts covering the company have released a ‘sell’ recommendation for the stock. Indeed, Snap will probably need to disrupt itself to survive.