Snapchat Is the Latest IPO to Hit the Market and Its Created a Lot of Buzz

This company has been around for awhile and as of today is a publically traded company. With price surging over 40% right out of the gate, many people are excited. Snapchat is a mobile phone app that allows you to post short 10-second clips or photos and send them to your friends or post them as a story. The short clips, if sent directly to a friend or friends, will be deleted immediately after. The other option is posting to your story, which that will stay up for 24 hours, and then being deleted after. There are many people that are worried the stock wont do well, but I just want to give you an overview of the situation that lies ahead. 

Published over a year ago
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Reviewed by Rifka Kats

Snapchat is being compared to Twitter in that it may not be all that it is cracked up to be. Sure the company has been around for a long time, but that does not mean it will be around for years to come. With Instagram, they introduced a similar feature of where you can post a video or photo as a story and people can view it for 24 hours. The future of the company certainly has a lot in store as this could be a very competitive road, but the fact they allow people to gain an insight into the lives of others is certainly a plus because as we all know, people always want to know what’s going on.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include SPDR SP income statement, its balance sheet, and the statement of cash flows. Potential SPDR SP investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although SPDR SP investors may use each financial statement separately, they are all related. The changes in SPDR SP's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SPDR SP's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of SPDR SP fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of SPDR SP performance into the future periods or doing a reasonable stock valuation. The intrinsic value of SPDR SP shares is the value that is considered the true value of the share. If the intrinsic value of SPDR is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares SPDR SP. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of SPDR SP earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. SPDR SP dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. SPDR one year expected dividend income is about USD1.51 per share.
Investing in stocks that pay dividends, such as etf of SPDR SP 500, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in SPDR SP must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for SPDR SP. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Going after SPDR Financials

Risks

Taking a look at some of the risks that lay ahead, the first is just the shear competition factor. Consumers are always on the lookout for the next latest and greatest, which means Snapchat could fade away as quickly as it came onto the scene. Another risk to keep in mind is that the stock just came out and there certainly is going to be a lot of price movement and volatility. If you are looking to invest, this certainly could be a risk because there’s so much noise that it may take a few days or weeks for price to really discover where it wants to go. Lastly, Instagram and these other companies are adding parts of Snapchat that could cause the company to lose market share which will drive down the stock price.

Conclusion

It certainly is way to early to tell how the stock price is going to do, but the fact it went public shows they have strong convictions that it can be successful. Right now, I would be waiting on the sidelines and seeing how everything shakes out. If after it settles you have questions, consult an investing professional as this person could help you decide if now is the right time or if you should stay away and stick to more established brands.

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