Millenial investors follow their hearts to lap up Snap shares
Millenial investors have pounced on the initial public offering of Snapchat's stock with young adults disproportionately represented among those buying and selling during a tumultuous few days of early trading for the technology business.
Since debuting last week, shares surged by more than 70% above the initial offer price within two days before an equally dramatic decline by a quarter in the period since.
Emotive decision making by many investors may be fueling these ups and downs according to Reuters which found many are piling in due to their affection for the brand rather than any realistic expectation of making a quick buck.
Amongst those following their hearts first and heads second was Kaleana Markley, a 29-year-old human resources consultant in San Francisco, who remarked: "Snap just felt like the IPO of my time and seeing where Facebook and Amazon are now, I really think Snap has the potential to grow (like them).
“There are a lot of companies I don't know or recognize, but Snap, I use the product, and know everyone - my friends, my co-workers, even my parents - uses it.”
More battle hardened investors have remained far more cautious, despite Snap’s value surpassing $25bn, pointing out that it has struggled to generate profits and posted disappointing user growth.