Today was the day of the long awaited Snapchat IPO. It was one of the most anticipated Tech IPO’s since FaceBook. Shares were set to the hit the market at $17 but that quickly changed. SNAP opened up at $23.71 and hovered around $24-$25 the entire trading day.

Like many excited young investors I could not wait for the market to open so I could purchase shares of one of the fastest growing social media platforms. As the market opened I realized that the SNAP price was not moving. It took a couple hours for trading to finally begin.

I set a limit order for $19 a share not knowing that it was going to open at $23.71. After seeing the price open well above what I wanted to spend for SNAP, I resisted the urge to put in a market order and will be waiting for a more attractive entry point.

I think that there is money to be made on this hot tech stock in the short term. Since SNAP was a private company before IPO, there is not much to go off of in terms of research. That is the risk you take when buying into an IPO.

The problem I have with SNAP is with its advertising . The way their advertising is set up makes it so easy to click out of an ad. The reason advertising is such a big deal is because thats where SNAP makes most of its money. If you have used Snapchat then you know what I am talking about. It simply takes a tap of the finger anywhere on the screen to completely end the advertisement. I don’t think that is going to be very good for conversion rates.

Most online ads pop up and are on the screen for a couple seconds. You are forced to quickly scan the ad to find the exit button. YouTube, for example, either makes you watch the whole ad or makes you wait five seconds before you can skip it.

If I was advertising for a large company I would not spend my advertising dollars on something so easy to disregard. It is unknown how SNAP will do after more information on how the company makes its money comes out.

Waiting until the hype wears off might be the best strategy for gauging what price to enter SNAP. I personally am going to wait a couple weeks to see how things pan out and will keep Zinser Times updated on this topic if anything changes.