Valuing Snap After the IPO Quiet Period (B)

Marco  Di Maggio; Benjamin C. Esty

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Supplement | HBS Case Collection | June 2018

Valuing Snap After the IPO Quiet Period (B)

by Marco Di Maggio and Benjamin C. Esty

Abstract

Analyzes Snap’s value and analyst recommendations following the events described in the (A) case.

Keywords: initial public offering; sell-side analysts; underwriters; investment banking; social network; discounted cash flow; cost of capital; conflicts of interest; venture capital; corporate governance; advertising; quiet period; Business Startups; Online Advertising; Initial Public Offering; Technology Networks; Valuation; Venture Capital; Forecasting and Prediction; Advertising Industry; Entertainment and Recreation Industry; Web Services Industry; United States; California;

Language: English

Format: Print

2 pages

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Citation:

Di Maggio, Marco, and Benjamin C. Esty. "Valuing Snap After the IPO Quiet Period (B)." Harvard Business School Supplement 218-096, June 2018.

About the Authors

Marco Di Maggio

Ogunlesi Family Associate Professor of Business Administration

Finance

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Benjamin C. Esty

Roy and Elizabeth Simmons Professor of Business Administration

Finance

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Teaching Note | HBS Case Collection | September 2019

iyzico: Fundraising in Emerging Markets (A) and (B)

Marco Di Maggio

Citation:
Di Maggio, Marco. "iyzico: Fundraising in Emerging Markets (A) and (B)." Harvard Business School Teaching Note 220-033, September 2019. View Details

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Case | HBS Case Collection | August 2019

BlueVine Capital: Growth Factors

Marco Di Maggio and Nathaniel Schwalb

The start-up BlueVine Capital Inc. (BlueVine) used data and technology to help finance small businesses via factoring and lines of credit. The case explains the small business financing market in mid-2010s, how CEO Eyal Lifshitz identified the opportunity for BlueVine, and how he built the company through its first five years of operations. Through the case, Lifshitz and his team discover insights about their small business customers that inspire them to change their product portfolio. In December 2018, Lifshitz must decide which new products to launch next.

Keywords: Business Startups; Small Business; Financing and Loans; Innovation Leadership; Financial Services Industry; Technology Industry;

Citation:
Di Maggio, Marco, and Nathaniel Schwalb. "BlueVine Capital: Growth Factors." Harvard Business School Case 220-006, August 2019. View Details

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Working Paper | HBS Working Paper Series | 2019

The Value of Intermediation in the Stock Market

Marco Di Maggio, Mark Egan and Francesco Franzoni

Brokers continue to play a critical role in intermediating institutional stock market transactions. More than half of all institutional investor order flow is still executed by high-touch (non-electronic) brokers. Despite the continued importance of brokers, we have limited information on what drives investors' choices among them. We develop and estimate an empirical model of broker choice that allows us to quantitatively examine each investors' responsiveness to execution costs and access to research and order flow information. Studying over 300 million institutional trades, we find that investor demand is relatively inelastic with respect to commissions and that investors are willing to pay a premium for access to top research analysts and order-flow information. There is substantial heterogeneity across investors. Relative to other investors, hedge funds tend to be more price insensitive, place less value on sell-side research, and place more value on order-flow information. Furthermore, using trader-level data, we find that investors are more likely to trade with traders who are located physically closer and are less likely to trade with traders that have misbehaved in the past. Lastly, we use our empirical model to investigate the unbundling of equity research and execution services related to the MiFID II regulations. While under-reporting for the average firm is relatively small (4%), we find that the bundling of execution and research allows some institutional investors to under-report management fees by up to 15%.

Keywords: financial intermediation; Institutional investors; research analysts; Financial Institutions; Investment; Financial Services Industry;

Citation:
Di Maggio, Marco, Mark Egan, and Francesco Franzoni. "The Value of Intermediation in the Stock Market." Harvard Business School Working Paper, No. 20-016, August 2019. View Details

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Valuing Snap After the IPO Quiet Period (B)

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