Snap’s IPO (March 2017) was the biggest tech debut since Facebook—but the stock immediately tanked and spent years struggling as Instagram copied every feature.
The IPO (March 2, 2017)
Priced: $17/share Opening: $24/share (41% pop) Valuation: $28 billion Raised: $3.4 billion
Age: Evan Spiegel (26) became youngest CEO of public company
The Red Flags
No voting rights: First major tech IPO with zero shareholder voting power (Spiegel and Bobby Murphy controlled everything)
Slowing growth: User growth decelerating
Instagram threat: Stories feature (copied from Snapchat, August 2016) already killing Snapchat’s growth
The Collapse
Peak: $27.09 (March 3, 2017)
Redesign disaster (2018): Controversial app redesign drove 1.2M petition signatures, Kylie Jenner tweet tanked stock 7% ($1.3B market cap) in one day
By 2018: Stock fell to $5 (down 80%)
2020: Recovered to $20s (TikTok threat actually helped Snap)
2023: Fluctuating $8-15 range
The Business Challenges
Spectacles failure: $350 camera sunglasses flopped (twice)
AR bet: Invested heavily in augmented reality, hasn’t paid off
Revenue struggles: Still unprofitable most quarters
Instagram/TikTok: Copied every Snapchat innovation (Stories, vertical video, filters, Spotlight)
What Worked
Gen Z loyalty: Teens still prefer Snapchat for close friends
Snap Map: Location sharing became popular
AR filters: Best-in-class AR lenses (brand partnerships)
Discover: Publisher content generated revenue
The Legacy
Cautionary tale: Being first doesn’t guarantee winning if you have no moat vs. Facebook
Innovation engine: Snapchat invented disappearing messages, Stories, AR filters, vertical video—everyone copied
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