Snap. Crackle. POP: Lessons learned during the Snap Inc IPO

Founders, entrepreneurs, presidents, CEO’s and shareholders are constantly seeding crops in order to obtain a good harvest. Somehow in different scales and in different contexts (economically, intellectually, artistically, socially, spiritually) we are constantly doing the same.

Last week we witnessed one of the most fascinating acts of the capitalism system, which is the initial public offering of shares (IPO) of Snap Inc.

In the capitalism system, either the companies are growing or are shrinking, stagnation is a state difficult to find.

Like going from the childhood to the adulthood, sometimes the process of companies growing too fast is quite painful. Therefore, taking the decision to become a public company is a serious business.

The founders and leaders of Snap Inc took the decision to make their company public, hence they performed the first big test and launched their IPO successfully on March the 1^st, 2017.

They placed 200 million of shares of non-voting class A common stock at US$17.00 each share during the initial public offering on March 1^st.

Immediately after the IPO, the market started to react accordingly making predictions about the different potential scenarios and charts for the $SNAP stock debut the next day on the NYSE.

On March the Second, the Snap stock debuted on the NYSE at US $24 per share, although in our particular case, we were able to access at $25.05 / 11:45 am.

So here our first lesson learned, for such a big event like an IPO, it is highly advisable to be fully redundant and have available two teams, each one with two internet providers and two different computers in order to split your stock investment position in two. Chances are, one of your teams will be able eventually to obtain a better deal. Additionally you are mitigating the risk using this strategy.

Then you should be fully aware of the short term players, the cherry pickers which will try to get a super-fast profit in the short term, once the stock reach the peak. So it is very important to watch carefully the market reaction during this stage.

Although the market was pretty much even in regards of the bulls/bears distribution rate during the post-IPO stage, Snap was surrounded by seasoned underwriters that manage the situation in the proper way.  Hence, the Snap stock delivered very well and pass another hard test during the Friday AH (After Hours) after the closing bell, finishing at $27.30 per share for the delight of the long runners.

Likewise, we decided to hold on the Snap stock for the weekend, moreover we are setting up a long term strategy in regards of Snap stock, since we have been experiencing some paternalistic feelings towards the stock due the refreshing young Snap leadership team that we consider is very important and healthy for the technological ecosystem and the economy, especially for the tech companies that will follow the path Snap is marking.

We really hope and wish, the new Lighthouse (a.k.a Snap Inc) is signaling a vibrant and colorful horizon in 2017.

So, let´s Snap, Crackle, POP and Cheers!