A few things different from Facebook and Twitter IPOs:
- Snap, Inc. did not have a readily available secondary market prior to IPO so company was able to capitalize on its IPO price (the pop).
- Snap’s standard vesting schedule is backloaded (+10% after 1st year, +20% after 2nd year, +30% after 3rd year, etc.), so employees have less incentive to leave before IPO gains are realized. Many early Facebook employees left for greener pastures.
- The Market is red hot. Assuming the Market does not crash by end of 2017 (which is a big if), then Snap will fare better than Facebook or Twitter did in their debut.
Also, that’s a bold headline as others have pointed out. Take a position, but own it. If you’re wrong in 6 months or at the end of 2017, remember to go back and acknowledge it.