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00:00:01
>> A rousing welcome for Snap Inc Thursday on the New York Stock Exchange after launching the most highly anticipated new tech offering out of the US since Facebook. Shares jumping as high as 50% in their much sought after debut, at one point, taking the market value of Snapchat's parent to more than $30 billion creating tech's latest multi-billionaires, at least on paper, including the company's 26 year old CEO, Evan Spiegel.
00:00:28
Reuters' breaking new Editor-in-Chief, Robert Cox, says he understands why investors are as googly-eyed as one of Snapchat's selfie filters.>> The bull case for Snap is pretty clear. These guys could be the next Facebook, or the next Google. People see them as a third pull in dominating the internet.
00:00:46
Secondly, there's potential for growth here. I mean, you've got 158 million users, they use it 18 times a day, revenue has gone up seven fold in 2016.>> But Cox warns, investors are turning a blind eye to red flags that could hurt them in the long run.>> Shouldn't even call it a share.
00:01:06
It's not really a share because you don't actually get to share much. You have a claim to the losses of a company that is this sort of new definition of totalitarian capitalism. You get no vote. The company dilutes the heck out of you.>> And there are others sounding the alarm.
00:01:24
At least one analyst slapping a sell rating on the stock reminding investors of spectacular post IPO flops like Twitter, Groupon, Zynga, and Fitbit. But others say, Snap shares are likely to benefit from the current Wall Street buying frenzy fueled, in part, by President Trump's pro growth plans. And Snap's success could pave the way for other companies eager to go public.