NEW YORK: Instant messaging service Snapchat surged in its debut trade Thursday, jumping more than 40 percent from the level set in the initial public offering Wednesday night.
Snap Inc., trading under the ticker “SNAP” on the New York Stock Exchange, was up about 45.4 percent to $24.72 near 1630 GMT, shortly after logging its first trades. The company’s IPO raised $3.4 billion with a price of $17 a share.
The disappearing-picture service is the largest US tech firm to make a market debut since Facebook in 2012, and its arrival has been seen by some supporters as an opportunity akin to that social network giant.
More than 158 million daily active users create 2.5 billion “snaps” each day in 20 different languages, generating an expected $936 million in revenues in 2017, according to a report from venture equity firm Goodwater Capital
“Snapchat is well-positioned to scale rapidly and take market share in the $652 billion global advertising market,” the report said.
But others are skeptical about the service, pointing to the example of Twitter, which has seen only modest increases in its user base since its 2013 IPO, and now trades well below its offering price.
Lou Kerner, manager of the Social Internet Fund and a partner in the venture investment firm Flight VC, said he is avoiding the offering, concerned that Snapchat’s user engagement may have peaked already.
Snap’s IPO filing left out details about historical trends for user metrics, he said — typically not a good sign.
“We know all products have life cycles — you can look at Twitter for a lesson,” he added.
Snapchat jumps more than 40% in debut trade on Wall Street
Snapchat jumps more than 40% in debut trade on Wall Street
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
