Valuing Snap After the IPO Quiet Period (C)
Synopsis
"Elizabeth Kemp decided to sell half of her Snap shares on Tuesday, March 28 following the expiration of the quiet period and the 5% price increase on Monday, March 27. She held the remaining 250,000 shares for several months as Snap’s stock price fell from $22.00 to $17.00 (see Exhibit 1). Much of this decline occurred on May 11 when Snap reported its first quarterly results as a public company. The company reported lower than expected growth in the number of DAU; revenue of $150 million versus an expected $158 million; and a loss of $2.2 billion due to a charge of $2 billion for stock-based incentive compensation.1 Snap’s price fell $4.93 (21%) that day from $22.98 to $18.05."
- Copyright:
- 2018 President and Fellows of Harvard College
Book Details
- Book Quality:
- ISBN-13:
- Publisher:
- Harvard Business School Publishing
- Date of Addition:
- 2018-12-19T17:57:22Z
- Language:
- English
- Categories:
- Usage Restrictions:
- This is a copyrighted book.