Snap shares rise on second day of trading

The share price rocketed 44% higher when trading began Thursday.

Snapchat’s parent company Snap is working on a new hardware product, which happens to be a drone. The company sold 200 million shares to investors to raise $3.4 billion in its successful initial public offering (IPO). At that price, Snap has a market value of about $24 billion. Venice residents and business owners are upset with Snap’s growth in the community, complaining that the company behind Snapchat has gobbled up once vibrant shopping and restaurant locations and converted them into boring office space.

And, if that’s not enough, he’s entitled to receive another 36.8 million shares over the next three years as a “CEO Award” for taking the company public, according to Snap’s IPO filing.

That will reportedly give Snap a market value of almost $24 billion, making it the largest USA tech IPO since Facebook. It’s just a bummer that Snap seems like it’s doomed, since it lost over half a billion dollars previous year. Snap’s first-day pop was bigger than those for Facebook (FB), Alibaba (BABA) and Alphabet’s (GOOGL).

Snap’s IPO order book was more than 10 times oversubscribed and could have allowed the company to price its shares at as much as $19 a share.

“Investors can’t have the same level of confidence that they would in other companies”, said Alan Brett, head of corporate governance ratings research at MSCI Inc.in London. In addition to Instagram’s massively popular Stories feature, WhatsApp, another Facebook-owned company, launched its own version of Stories last month. Snap’s new drone experiment gives us a sneak peak in to the innovations that the company could come up with in the future.

Launched in 2011, Snapchat now has 158 million daily users. Snap Inc.is enabling frictionless engagement experiences by meeting users’ needs on the channels they’re already using, which is something many brands and retailers are still trying to figure out.

She said all her friends were obsessed with it. Many users enjoy transforming images with what Snapchat calls its “lenses”. This makes it the largest U.S. IPO in the Tech sphere since Facebook.