Snap's IPO

Boom or Bust? Tech IPOs Can Go Either Way


The initial public offering of Snap, which will be priced after the U.S. stock market closes on Wednesday, is undoubtedly one of the most highly anticipated IPOs in recent years. Despite doubts about the company’s ability to ever turn a profit, it appears as if people are lining up to buy into the company behind the en vogue messaging app Snapchat.

While the IPO will make dozens of Snap insiders and early investors very rich overnight, those buying into the IPO are by no means guaranteed a similar windfall. As opposed to popular belief, tech IPOs can go either way. Companies such as Zynga, Groupon or Twitter are currently trading far below their IPO prices, leaving those who bought shares in their IPOs and held on to them with a hefty loss on their hands.

There are other examples as well, as our chart illustrates. After a nightmare start as a public company, Facebook successfully turned things around and IPO buyers who were patient enough not to lose faith have more than tripled their investment by now.

Infographic: Boom or Bust? Tech IPOs Can Go Either Way | Statista
Related Infographics
  • Snapchat
    Snap to Lose $2 Billion This Year?

    This chart shows analysts' predictions for Snap's revenue and net loss in 2017.

  • Financial Markets
    The Firms Backing the Largest Public Offerings in the U.S.

    This chart shows the underwriters of largest IPOs in the United States as of March 2017 (in billion U.S. dollars)

  • Venture capital
    The Startup Investments That Really Paid Off

    This chart shows the estimated return on selected recent startup investments.

  • Snapchat
    How Snap's IPO Pop Measures Up Historically

    This chart shows the stock price gains of internet companies on their first day of public trading.

  • Snapchat
    Snap Is More Valuable Than These Household Names

    This chart compares Snap's IPO valuation to the market capitalization of selected well-known U.S. companies.

You may also be interested in...
Infographic Newsletter

Statista offers daily infographics about trending topics covering Media and Society.

Download & Reference
You may also be interested in...
Who may use the "Chart of the Day"?
The Statista "Chart of the Day", made available under the Creative Commons License CC BY-ND 3.0, may be used and displayed without charge by all commercial and non-commercial websites. Use is, however, only permitted with proper attribution to Statista. When publishing one of these graphics, please include a backlink to the respective infographic URL.

Which topics are covered by the "Chart of the Day"?
The Statista "Chart of the Day" currently focuses on two sectors: "Media and Technology", updated daily and featuring the latest statistics from the media, internet, telecommunications and consumer electronics industries; and "Economy and Society", which current data from the United States and around the world relating to economic and political issues as well as sports and entertainment.

Can Statista create customized charts?
Absolutely! For information on tailor-made and sector-specific Charts of the Day, please contact Robin Hüdepohl