In its SEC filing, Snap notes that while it saw its base of daily active users grow by 7% in the second quarter of a year ago, "the growth in daily active users was relatively flat in the latter part of the quarter ended September 30, 2016".
The shares were set to begin trading Thursday under the symbol SNAP on the New York Stock Exchange.
Last year, Snap rebranded itself as a camera company, introducing sunglasses that connect with the app and show friends what the user is seeing.
That implies a multiple of about 21.4 times EMarketer's estimate for Snap's 2017 advertising sales.
With that continued IPO boom, Snap has avoided the curse of Facebook (FB, Tech30), but maybe not the curse of Twitter (TWTR, Tech30).
Snap co-founders Evan Spiegel and Bobby Murphy rang the opening bell at the New York Stock Exchange, which Snap is listed on. The year before Twitter's IPO, it lost $79 million, while Facebook made $1 billion.
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When they're first offered, IPO stock is priced to sell: The goal is to name a price that investors will find attractive (i.e., one that's "low" enough). It faces intense competition from larger rivals, such as Facebook Inc, as well as decelerating user growth. In addition to Instagram's massively popular Stories feature, WhatsApp, another Facebook-owned company, launched its own version of Stories last month. Timothy Sehn, Snap's vice president of engineering, is now worth at least $165.3 million on his 6.7 million shares in the company. However, the Los Angeles-based company incurred a $514.6 million loss for the year.
At the end of the Thursday, Spiegel was now worth more than $5.4billion, thanks to the more than 210 million shares he held onto and the 16 million he sold.
Other analysts are even more blunt about Snap. The six-year-old startup, beloved by millennials, is the biggest USA tech company to go public since Facebook, which was worth $104 billion at its 2012 IPO.
When you think about IPOs normally the only people that really make a lot of money is the owners of the company, investment firms, and banks.