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  • June 2018 (Revised April 2021)
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Valuing Snap After the IPO Quiet Period (A)

By: Marco Di Maggio, Benjamin C. Esty and Gregory Saldutte
  • Format:Print
  • | Language:English
  • | Pages:16
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Abstract

Snap, the disappearing message app, went public at $17 per share on March 2, 2017, making its two 20-something founders the youngest self-made billionaires in the country. Over the next three weeks, 14 analysts made investment recommendations on Snap: two with buy recommendations, six with holds, and six with sells. When the “IPO quiet period” expired three weeks later, 16 more analysts—who worked at firms that were underwriters for the IPO—issued recommendations: 10 with buy and six with hold, with price targets ranging from $21 to $31 compared to a market price of $23. Elizabeth Kemp, the portfolio manager of a long-only technology fund at Sand Hill Road Capital, had bought 500,000 shares at the IPO price and had to decide whether to harvest her gain or to double down and buy more shares.

Keywords

Sell-side Analysts; Underwriters; Investment Banking; Social Network; Discounted Cash Flow; Cost Of Capital; Conflicts Of Interest; Corporate Governance; Advertising; Quiet Period; "DCF Valuation,"; Business Startups; Digital Marketing; Initial Public Offering; Information Infrastructure; Valuation; Venture Capital; Forecasting and Prediction; Social Media; Advertising Industry; Entertainment and Recreation Industry; Web Services Industry; United States; California

Citation

Di Maggio, Marco, Benjamin C. Esty, and Gregory Saldutte. "Valuing Snap After the IPO Quiet Period (A)." Harvard Business School Case 218-095, June 2018. (Revised April 2021.)
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About The Authors

Marco Di Maggio

Finance
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Benjamin C. Esty

Finance
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Related Work

    • June 2018
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    Valuing Snap After the IPO Quiet Period (B)

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    • June 2018
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    Valuing Snap After the IPO Quiet Period (C)

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    • June 2018 (Revised April 2021)
    • Faculty Research

    Valuing Snap After the IPO Quiet Period

    By: Benjamin C. Esty, Marco Di Maggio and Greg Saldutte
    • June 2018 (Revised October 2018)
    • Faculty Research

    Valuing Snap After the IPO Quiet Period (A), (B), and (C)

    By: Marco Di Maggio and Benjamin C. Esty
    • June 2018 (Revised April 2021)
    • Faculty Research

    Valuing Snap After the IPO Quiet Period (A)

    By: Marco Di Maggio, Benjamin C. Esty and Gregory Saldutte
Related Work
  • Valuing Snap After the IPO Quiet Period (B) By: Marco Di Maggio and Benjamin C. Esty
  • Valuing Snap After the IPO Quiet Period (C) By: Marco Di Maggio, Benjamin C. Esty and Gregory Saldutte
  • Valuing Snap After the IPO Quiet Period By: Benjamin C. Esty, Marco Di Maggio and Greg Saldutte
  • Valuing Snap After the IPO Quiet Period (A), (B), and (C) By: Marco Di Maggio and Benjamin C. Esty
  • Valuing Snap After the IPO Quiet Period (A) By: Marco Di Maggio, Benjamin C. Esty and Gregory Saldutte
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