Following Its Blockbuster IPO, Snap Now Faces Some Growing Pains - The Street
Wall Street is still seemingly abuzz with excitement after Snap made its blockbuster debut on the New York Stock Exchange on Thursday, marking the first tech IPO to go public this year.
With a market cap of more than $30 billion, Snap is now more valuable than Twitter and Viacom, and isn’t far behind eBay and Tesla Motors. The company now has about $2.3 billion in cash to use for acquisitions, new hires, product development or whatever else it chooses to do.
Snap has hired a number account executives — employees who manage and seek out brand partnerships and other business opportunities — leading up to its IPO. The company is also seeking to hire more than a dozen ad-related positions ranging from sales operations associates and marketing managers to product managers.
Snap said in its S-1 filing that it generates “substantially all” of its revenue from advertising, so these hires may show that it’s trying to beef up its advertising reach. It’s a smart move, considering that it will be competing to grab dollars from ad juggernauts like Facebook and Google, who currently maintain a stranglehold on the digital advertising market, said Michael Dzik, an advisor at Triton Research, which helps investors navigate companies preparing for an IPO.
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