How to Buy Snapchat Stock

Want to claim 6 FREE stocks? Head over to Webull to get started.

Once Facebook spearheaded the social media movement at the beginning of the century, companies like Snapchat (SNAP) quickly sprouted up to fill the value voids left by the behemoth.

Snap is an American camera and social media company founded in 2011 by Evan Spiegel and Bobby Murphy. Snap is based in Santa Monica, California and has three products that drive revenue: Snapchat, Spectacles and Bitmoji.

Buy Snapchat Stock

The social media company made its debut on the New York Stock Exchange in March 2017. Since its initial public offering at $17, the company’s market capitalization has risen to $90B, or around $60 per share.

Snapchat at a glance

Although most people forget the company’s original name “Picaboo,” Snapchat created a user experience through “Snaps,” which consist of either photos or short videos. Unique to Snapchat, the videos, photos, and messages disappear after being viewed. The company provided value to users who wanted a way to have more casual and simplified interactions than applications like Facebook, Instagram, or various messenger apps.

Snapchat has gone through some interesting changes and events over the years:

  • Video sharing functionality was added in late December 2012.
  • A security flaw led to the hacking of 4.6 million users’ names and phone numbers in 2013-2014.
  • Snapchat turned down an offer from Facebook in late 2013.
  • In 2016, the company rebranded itself Snap, Inc.

History of Snapchat

If you had invested at the IPO price of $17, your investment would have quickly shot up as high as $29.44.

Since its initial public offering at $17, the company’s market capitalization has risen to $90B, or around $60 per share.

Why purchase Snapchat stock?

Pros of purchasing Snapchat stock:

  • The company lacks similar competition, that is, outside of Instagram stories
  • Snapchat maintains a strong position of assets in 2021 to cover its current negative cash flows

Cons of purchasing Snapchat stock:

  • Although Facebook proved that the monetization of social media is possible, Snapchat still faces skepticism from many potential advertisers.
  • Snapchat currently relies heavily on advertising dollars, which make up a vast majority of its revenue.

How to purchase SNAP

Most major brokerage firms that trade securities will provide you with the ability to purchase Snapchat’s stock. Some basic ideas on how to acquire the stock:

  1. Decide how much you’d like to invest.

    If you’re an investor, you expect your capital will increase in value, given enough time, with the full knowledge that it’s possible to lose capital as well. Research and determine the risks associated with Snapchat and your own risk tolerance before you decide on an appropriate investment amount.

  2. Find a suitable broker.

    If you’re unsure of the specific steps to purchase a stock, most brokerages will lend support, along with educational videos to demonstrate how to purchase SNAP stock.

  3. Purchase SNAP.

    Once you’re set on a broker, follow the instructions to enter a purchase order for the number of shares you wish to purchase. You can find out more about the types of orders here.

Best Online Stock Brokers

get started securely through Webull’s website
Best For
Intermediate Traders and Investors
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Intuitive trading platform with technical and fundamental analysis tools
  • Does not support trading in mutual funds, bonds or OTC stocks
get started securely through Moomoo’s website
Best For
Active Traders
1 Minute Review

Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.

Get started right away by downloading Moomoo to your phone, tablet or another mobile device.

Best For
  • Cost-conscious traders
  • Active and Advanced traders
  • Over 8,000 different stocks that can be sold short
  • Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
  • No minimum deposit to open an account.
  • No chat support
get started securely through Interactive Broker’s website
Best For
GlobalAnalyst Product
1 Minute Review

This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.

Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.

Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.

Best For
  • Price earnings growth valuations
  • Easily evaluate investment opportunities
get started securely through CenterPoint Securities’s website
Best For
Momentum traders
1 Minute Review

CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.

Best For
  • Intermediate to Advanced traders
  • High-volume traders
  • Momentum traders
  • Short sellers
  • Unrivaled access to short inventory
  • Flexible order routing for improved executions
  • Discounts for active traders
  • Advanced platform with fast executions
  • Reliable customer service
  • Not designed for beginner or low-volume traders

Future outlook

As is often the case with newly listed companies, Snapchat still remains a risky investment in the eyes of most analysts. The company currently grows at an exceptional rate, but has yet to temper its costs with growth.

If the company turns profitable like Facebook, the current share prices are a bargain. Time will ultimately tell whether Snapchat lives up to expectations.

Final thoughts

Snapchat’s price reflects what investors expect of the company. In order to justify the current share price, many individuals expect Snapchat to turn a profit at some point.

What you have to decide for yourself is if that’s true and when its value increase will be realized.