Snapchat Stocks to Face Big Hurdles on Wall Street Before Becoming the Next Facebook or Google [VIDEO]

Snapchat Stocks to Face Big Hurdles on Wall Street Before Becoming the Next Facebook or Google [VIDEO]

Charles Lim

Snap, the parent company of the highly popular Snapchat app, is currently not doing so well in the stock market as it has been experiencing some big dips over the past few days. The company did enjoy a big jump after the initial public offering (IPO) was launched, but it has since then dropped to 11 percent below its $24 opening price.

The company likely wants to follow in the footsteps of other big name tech companies, such as Google and Facebook, but it still does have a lot of hurdles to overcome to achieve this goal. Snap, which has labeled itself as a Camera company, is planning a lot of big things, but it first has to attract investors before that happens.

Joining the Big Indexes

Being included in big indexes, such as the MSCI USA and the S&P 500 index, is perhaps one of the easiest ways for Snap to be recognized by investors. Joining these groups also includes big benefits in boosting the stock. Back in 2013, Facebook experienced a massive 31 percent boost just a few months after it was added to the S&P 500.

Unfortunately for Snap, there is now a group of representatives from institutional investors who are lobbying to bar Snap from joining several major stock indexes. This could spell disaster for the company, which does badly need the tailwind boost from the big groups.

Snapchat and Future Products

Snap hasn't really outlined their plans for growth and how they see themselves in the coming years. While the company has expressed their interest in going into the drone market, no other plans have been outlined regarding any future products. Older users and aging fund managers also see the company's product, particularly the Snapchat app, as somewhat juvenile.

The company's CEO, Evan Spiegel, has also not yet outlined any sort of strategy for the company now that has finally gone public. Successful social media and tech startup companies are a dime a dozen, but it has yet to be seen if Snap will be following the footsteps of other failed IPOs, including Fitbit, GoPro, and Twitter, among others.

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