Transcript for Snapchat IPO debuts with high expectations
Good morning everybody I'm on the not live in New York it's Thursday march 2 and 2017 has its very first pac. I PO and it's a big one. Our colleague Rebecca Dartmouth is down on the floor of the New York Stock Exchange in the middle of where all the action is going to be today to tell you everything you need to know. About how to get a piece of snap Chad Rebecca it did Mary Tommie Liddell not what we need to know about. Me like yeah it yet you're hearing I'm. The balance here at anything. Eight. Agassi all that it. This is the place right here where's pat at events. In three. It's. Yet. Bell ringing. He can we absolutely can we see them up there I think it's evidence being I think it's CTO is up there as well Bobbie Murphy and other government as well these. They are cheering and pumping their arms they have a lot of reasons to be happy today right Rebecca. Cleared. Up but these are people at meego for. Six year old who is being granted her now is. CEO at six years old this is a product that it advanced at Stanford. I. One billion people a day. And could be huge night you know this is one of the biggest tech IPOs that we seen. I'm asking a lot of people on here and now. It Witter. The question is which one is snapped back to eat at the quest go. Where is it going to be more like FaceBook which that this IPO is but it's earth. Hour. And it is more likely are we think it IPO is now that you. He had now Rebecca we know they set the share prices at seventeen dollars right. There had to raise potentially billions today how we know Wendell Leno rather how the stock is performing when it comes to an IPO how long does it take. Before we can evaluate. Speaking I you know they don't whole thing when the rest of the stock market. The here at New York Stock Exchange money you're riding open at pine Perry asked when stocks helping your opinion are not being with an eye out. It's a bit longer for that come to start reading in the reason it you've even seen people behind me. They hear all trying to figure out orders right now more than dock they're all putting together orders that according to. I and me story that at the bowling that all of that threatening I think it is worked out. That's when the company actually start reading we'd seen it happen. As late in the day at 111130. Closer to new and is probably what will start actually seeing this company three. And human rights so that. Star Alice add up right seventeen dollars and where snack snack right last night apple sent me the amount that main. And inside hires are willing to pay on this but that's right. Can get pushed up by inference by a lot of people wanting to own the stock and I hearings. That we might write it up as high as eighteen dollars fifty cent. Before its start treaty that morning before Iraq. I think the bottom line here and you active but that's happened at mercy. How can the average person well I did say that you. And by cat and by the way I am at my aunt apparently. I am not be financial planner I am not 35 I'm not keeping people ate investment advice but historically speaking. I the I'm they wine needs you inquiry they could be very volatile and it happier or thinking about their money and I hear it. The best strategy it but one that his historically worked. The back and paid out the vote. Is the a lot of them thinking is buying and 500 index it's putting your audience your company's world one day it went higher rate and letting it get there. And earn money over time because there are peaks and valley. All in the stock market in individuals not. And only time this strategy that he's not really happening I think if the put it into that higher array. While hiring hiring at your 401K. Let it sit there. So here's the other thing Rebecca for people who are looking act snapped. It's not just about how the company does today it in a positioning themselves for an IPO at this point in time. It's sort of set the tone for the rest of the tech market right a lot of yeah going to be looking to see how much appetite is there for other. It right through the number of big act companies right now that are watching it over here and he spotted by either all companies. That are not yet public. That are a row if this same elite in the air. Janet fit in where in their creation story their wrap this same point and that cat and now watch this today to see how you respond because they do have interest in going public and if the market respond positively that will very likely near the way for other tech act you have to start happening. I have to say in the backdrop of all of this they wouldn't ask for a better. Underlying stock market to go public it with the Dow yesterday hitting that when he 1000 milestone surpassing it for the first time ever. And stocks already this year up more than 5% it's certainly a positive environment in which to go public it. When you're public company and you're going public rather when you wanna go public at the company. It's including environment you want want that you worry you want that optimism. There's nothing worse that trying to you become a public company in an environment that's happening at that. Habitat for this stock whether this stock it's better that Rebecca will. Think I was hoping you could shed some light on that the nature this IPO is that they are selling non voting shares. Which is a cattle bit unusual right which means people can I share is basically saying we trust this company's gonna grow but we're not gonna have a say in its direction. So traditionally speaking if you're a shareholder in the company you can vote on the point is that the company may have a say it ain't. You don't happen and that's that basically saying if you help us by by guards stopped. You don't get the have a say in what we knew going for. And here's the other thing that fascinates me about tech IPOs in particular the whole market seems to be built on experimentation. And being able to remain nimble and responsive to the market in your user's needs. When you go pump Blake. You are suddenly kind of constraining yourself right as a whole new set of regulations and rules that Evan Spiegel and body Murphy in the leadership now have to adhere to so. How how are people looking at that when they're evaluating that the company. Companies snapped that in particular and I think really all tech companies. Our Victoria's Secret and you're a private company you don't have any public shareholders you can be notoriously secretive. What's your public company have to start produce. Don't seem happy here with the worked well something called it. Technically means. You're telling the world exactly how your finances are. At exactly company here's your adding and what things are working in the business and what we're in the business that can add. Later somebody might say well then why would he spoke with in the first it's actually fit that a lot of company that's themselves can we build. Ultimately the reason it's now and the public eye with his pupil first stop. Here's the ambassadors who are hoping to get something for their position people who started out in snapped cat in the very early days. Probably were around when fat cat turned down the three billion dollar offer. Facebook love you here is back and they are hoping to get something back there to get a return on in math it. Air is the reason that's also there appointees wanna go public and that is the reason that can you think with that. In IPOs that cat raises about 3.4. Dollars. And they won't use that money went back in the company's future to try to make the company grow but the bottom line here on you pointed out. We're gonna know more about this company now that we average did eat more because they are public and one thing we learned. Through the company when they when they released their rings. A public is that in the last year up between 2015 and 26 teen. Beer revenues clearance sales rose 600%. To more and more million dollars but ultimately even if they made 400 million. L they eat lots. 550. Million dollars overall the big thing for this company going forward is and they start to actually make money. And they start sit sit sit still profits Wall Street won't want to see that this company is hurting something eventually. But they also have a 161 million users and that's very valuable to hide the block. Every right to the question is now and they monetize those users somehow I turned them into money they've also. I think it'd they they're advertising business grew enormously detained when he fifteen and 26 teams when it comes to content companies is something. A lot of people look at that the skies interestingly bill themselves as that camera company right they are much more they do social media and contents. But they're deliberately thing that we're at camera company and will build. Off that. Yet this coming aipac to Paris with her about. Runs re. Very famous journalist in silicon out. And see that look I think I'll bounce whenever they want it all and felt. Beat they're calling themselves the camera company have blocked differentiate they don't want to BE. This social network which is what beast that was considered when they went public. But I think this has to do with how the product is used anybody who uses snap that I'm a big. You think that and I know I'm that you're you're familiar with that that is well we open up next that. The first thing you've seen. Is that camera button it's that little round button in the middle of this screen this thing that this company. Will likely do in the future with cameras involved augmented re out. Potentially. Virtual reality so I think that's. Why they're calling themselves the company right now but it because you think about all the filters and all the things that you view with that cat right now. It's all because the camera that your evil that you go. That's so true that if they're true we're gonna. Follow you for the rest of the day to see how this goes on Rebecca Jarvis Bolivar and where you guys and of course are reporting right here. At ABC and everything he got a big interview coming up as well right. There. Explain all this activity behind me and the buff I scenes of what's going on right now. With the snap cat IPO as the company gets ready to treat at the public company for the first. Big day down there on the stock exchange Rebecca Jarvis is covering it all for ABC news thanks to her thanks to you for watching it right here for the latest live streams happening around the world. And right here for all of us here it now. I'm on in the past.
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