FIRST AIRED: March 2, 2017

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00:00:01
>> Snapping, the parent of snap chat looking to spine stock market gold. The IPO pricing at $17 a share ahead of it's Thursday market debut topping expectations and raising $3.4 billion in the most highly anticipated high-tech IPO, Since Alibaba. While there's sure to be a lot of smiling faces among early investors, new investors have reasons to be cautious.
00:00:24
Says Reuters Breaking Views Editor-In-Chief, Rob Cox, who couldn't help but get colorful.>> Well, I think the government's structure of Snap is vomitacious. I mean, it looks like rainbow barf, the kind of thing that you put on one of those videos
LAUGH] f
om Snap. You're buying into a company which you have absolutely no vote.
00:00:42
They now are saying we only have this stack that we're offering new public investor and it means you have no say in the company. You don't get to vote on our compensation, you don't get to vote on who the directors of the company are, if we do some big gigantic deal that dilute share holders, you still don't get a vote on it.
00:00:58
I mean this is something that's never before really been seen in the history of Wall Street.>> Others are also concerned. Routers learning that advisers to the SEC will next week will review snaps on presented shareholder structure and probe whether that leads to a lack of transparency. Then there's the issue of evaluation.
00:01:18
At $24 billion, it's the richest U.S. tech debut since Facebook went public almost five years ago. Snap is still losing money and subscriber growth isn't what it used to be.>> Look at their user growth, they've gone up to 158 million in the fourth quarter from the third quarter.
00:01:36
That's actually only a 3% growth rate from quarter to quarter. This is sort of the problem we saw with Twitter by the way, you saw growth but you saw growth rate slowing and I think given the kind of valuation they're putting on the company you gotta see more than a 3% sequential growth rate to really be excited by the stock.
00:01:52
>> Add to that what's become a modelled message instead of focusing on the Snapchat messaging app that made it famous, it's been selling itself as a wearable tech company, another thing making it difficult for investors to know how much the company is really worth, no matter how well the stock performs on day one.