Snapchat went public last week and it opened up around $24.73 and has since traded between $23.50 to $29.44 . It is one of the most anticipated IPOs in recent times.
I been asked a few times if I would be buying Snapchat stocks. My answer is ‘No’. I have a very simple reason for not buying it. Mainly it is a product I dont understand and find a use for. I normally tend to invest in what I know or what I understand and something that makes sense to me ! This doesn’t mean it is not a good investment ! It is just something I wont be investing in.
When Facebook had its IPO, I bought its shares on the day of the IPO. It went down to $19 before going up to over $90 . Again, I bought Facebook at that time because it was something I used and I had seen all kinds of people join and use Facebook. So it made sense to me at that time.
I only start looking at statements and research of a company if I understand it, since I dont for Snapchat I will not be doing any more further analysis on it.