Snap Inc (SNAP)

[junkyard dog]

More Evidence that Young Investors Loved Snap’s IPO
TD Ameritrade saw transaction revenue jump as new clients bought Snap shares.

Avi Salzman
April 19, 2017 4:33 p.m. ET
The Snap Inc. initial public offering last month drew lots of buzz, and new customers for online brokers.
The Snap Inc. initial public offering last month drew lots of buzz, and new customers for online brokers. Photo: to come

Snapchat’s initial public offering is making the stock market cool again, encouraging young people to open new online brokerage accounts, according to the CEO of TD Ameritrade.
In a conference call following TD Ameritrade’s earnings and an interview with Business Insider, Ameritrade executives said Snap Inc., Snapchat’s parent company, provided a big boost to the company’s first-quarter results. Trades per day jumped to a record 517,000 and total revenue rose to $904 million, above the $884 million that analysts had expected.

On Ameritrade’s conference call, CFO Steve Boyle credited the Snap IPO with helping spur the revenue increase, calling it a “mega IPO.”

Snap, the parent company of Snapchat, started trading on March 2, rising 44% in its first day. More than 200 million Snap shares were traded, about 10% of the total volume on the New York Stock Exchange.

“Snap was good for us in a lot of ways,” Boyle said. “We saw a strong trading, we saw a lot of clients that opened new accounts that Snap was their first trade.”

CEO Tim Hockey told Business Insider that he’d heard of a 16-year-old opening an account to buy into Snap Inc., the parent company of Snapchat.

“People buy what they know, and younger people know social media,” Hockey said.

Unfortunately for Ameritrade, big tech IPOs have been rare lately, so the company may be waiting a while for its next big bump.

Big Picture: The excitement over Snap Inc. helped TD Ameritrade draw in new customers in the last quarter.


http://www.barrons.com/articles/more-evidence-that-young-investors-loved-snaps-ipo-1492634024