This is the 6th week in a row the S&P500 and NASDAQ rose. In a close second, DJIA has just completed rising 4 weeks in a row. Driven by a positive reaction to Trump’s speech to Congress last Tuesday where he adopted a much more moderate tone, US stocks had a winning day, actually performing the best so far in 2017. This caused the Dow to close above 21,000 for the first time in history. Put in context, it has taken the DJIA 24 trading days to vault from 20,000 to 21,000. This is also a record being the fastest 1,000 point jump in US trading history.
Friday, March 3rd also saw Fed Reserve Chairwoman Janet Yellen signal that a March rate hike seemed appropriate. So, as it now stands it would appear that a rate hike in March seems very likely. This may mean traders hold off during the week as we wait for the FED’s March 14 -15 meeting.
The Snapchat IPO Story continues
Following Gavin Smith’s suggested policy that First Global add IPOs to the platform when possible, trading on Snapchat was brisk with many of our traders making significant wins. Let’s see if the trading continues today on the stock but there can be no doubt that the biggest move on the street last week was centred around the Snapchat (SNAP) launch. The IPO raised $3.4 billion dollars based on the $17/share price. There were 12 times more orders than shares offered in the IPO and everyone take note that the media conglomerate NBCUniversal took a $500M position in the company.
By the end of the first day’s trading Snap Inc was up 44%. This positive sentiment continued on Friday as trading caused the market cap to climb to £44 billion. By the end of the second day shares rose 59% with the company now valued at $36.5B.
Sources report earnings for Snapchat in 2015 - $58.1M, 2016 - $348.4M and an expected 2017 revenue of $804.5M.
Is the Snapchat valuation warranted?
With 158M users in the 13 – 34 age range and the high spending 18 – 24 year olds making up the largest segment, this makes Snapchat the most popular social network among U.S. teens. A golden opportunity for advertisers to reach a teenage target audience.
Bloomberg reported that Snapchat is getting 10B video views a day. Just to give some context, Facebook’s last reported video count was 8B daily views, this includes mobile and desktop traffic. Snapchat is currently mobile-only, so their market share is pretty impressive.
Register your free account.
To verify your account and start live trading to increase your bitcoin, Log in to the legacy site and go to the Account Settings tab to verify your account data. You can deposit your bitcoins on the Deposit tab. Then login to new professional trading platform.to start trading over 350 US, UK, Hong Kong and German stocks, ETFs, futures contracts and currencies on the FGC site.
Good luck traders.