Spiegel, chief executive of Snapchat
In December 21st, according to foreign media reports, although we do not think that this is an important watershed moment, but the interesting phenomenon still appears. The market value of the two big social media Snap and Twitter is now at the same level.
Although the shares of the two companies fluctuate slightly, the market value of Snap and Twitter is now around $18 billion 700 million. Although the market value is the same, it reflects the recent different trend of the two companies' popularity. This year, Twitter's share price has risen by about 50%, and Snap's share price has fallen by about 35% since the beginning of the year.
First look at Twitter's stock price trend over the past year.
Then it's Snap's stock price trend in the last year.
In fact, the two companies have the same market value, but they have different stories. The share price growth momentum of Twitter and Snap has been slow. But a few days ago, the upgrading of function and system has raised Twitter share price slightly. Investors are starting to look at Twitter in a totally new way. But Snap is quite different, and after a spectacular IPO, Snap's share price has plummeted. The recovery of later Snap shares is not so good, so the company needs to find a way to reverse the current situation.
Twitter struggled for most of the time this year, trying to speak out of his own ideas. Twitter is ready to make changes in products and solve the problem of abuse of accounts and harassment for many years (this problem has become particularly prominent this year). On Monday, Twitter said the new regulations are committed to violence and hate speech about cleaning, and improve the Wall Street Twitter stock rating also increased the confidence of investors, make Twitter a strong rise to the end of the 2017 attitude rather than limped to the end of the year. Twitter's share price hit the highest point earlier this week.
On the other hand, Snap has gone through a very bad time after IPO, because the stock price doesn't show Wall Street's confidence in IPO. Of course, it is normal for new listed companies to have sharp fluctuations in the early stages. After all, Twitter has been on the market for many years, and Snap is less than a year, and the overall situation is still more difficult.
The price is very important for a company, it shows the recent changes in the company, but also help the company for future employees to provide more generous compensation, help the company to attract more excellent talents, especially for Snap and Twitter such a product driven company. Of course, two companies may also express their focus on providing long-term value for shareholders instead of paying attention to stock price changes in the short run, but for investors, stock price is the most direct manifestation of a company's performance.