Summary: With over 750 million active monthly users, Snapchat (NYSE: SNAP) is one of the biggest players in the social media landscape. A convenient and secure way to buy its stock is through a reputable brokerage platform like eToro.
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About Snapchat
Snapchat is Snap Inc.’s popular multimedia messaging app that allows users to send photos and videos that disappear after being viewed. Developed in 2011 by Evan Spiegel, Bobby Murphy, and Reggie Brown, the app quickly gained a massive user base, particularly among younger generations.
Over the years, Snap Inc. has continued to innovate and expand its offerings, including the introduction of Snap Spectacles and various advertising opportunities on the platform. As of the beginning of 2024, Snapchat has over 750 million active monthly users, making it a significant player in the social media landscape.
Snapchat IPO
Snap Inc.’s initial public offering (IPO) in 2017 was a significant event in the world of finance. When Snap Inc. went public, it offered shares of its stock to investors for the first time. The stock is currently available on the New York Stock Exchange (NYSE) under the ticker symbol, SNAP.
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How to buy Snapchat stock: Step-by-step
Now, let’s explore the steps you need to follow to buy SNAP stock.
Step 1: Choose a brokerage
Before you can buy Snapchat stock, you’ll need to open a brokerage account. A brokerage account is an online platform that allows you to buy and sell stocks and other investments. Once you’ve chosen a brokerage, you’ll need to complete their account setup process, which typically involves providing personal information and funding your account.
Our go-to brokerage for buying SNAP stock is eToro. Besides its 30 million registered trading accounts, eToro also holds licenses from reputable regulatory bodies like FinCEN and offers several solid features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
If you’re interested in investing in other social network and messaging apps, you can consider the following options:
Step 2: Fund your account
After you’ve opened your brokerage account, you’ll need to deposit funds into it. This money will be used to purchase Snapchat stock when you place an order. You can fund your account by linking it to your bank account.
Step 3: Place your order
With your brokerage account funded, you’re ready to buy SNAP stock. Here’s how to place an order:
- Log in to your brokerage account: Use your username and password to access your brokerage account;
- Search for SNAP stock: Use the search or ticker symbol function to find Snapchat’s stock. The ticker symbol for Snap Inc. is SNAP;
- Select the number of shares: Decide how many shares of SNAP stock you want to buy. You can specify the quantity in your order;
- Choose order type: You can place different types of orders, including market orders (buying at the current market price) or limit orders (specifying the maximum price you’re willing to pay). Select the type that suits your strategy;
- Review and confirm: Double-check your order details, including the number of shares and order type, and then confirm your purchase;
- Monitor your investment: After your order is executed, you can monitor your Snapchat investment in your brokerage account. Keep an eye on how the stock performs and consider your long-term investment goals.
SNAP stock price today
Pros and cons of buying Snapchat stock
Pros
- Growth potential: Snapchat has a large and engaged user base, which can translate into potential revenue growth;
- Innovation: Snap Inc. continues to introduce new features and products, which may attract advertisers and users;
- Young demographic: Snapchat’s audience is primarily younger, making it appealing to advertisers targeting this demographic;
- Diversification: Adding SNAP stock to your portfolio can help diversify your investments beyond traditional assets like bonds and mutual funds.
Cons
- Volatility: Like many tech stocks, SNAP can be volatile, which means its price can fluctuate significantly in the short term;
- Competition: Snapchat faces stiff competition from other social media platforms, which could impact its user base and revenue growth;
- Advertising dependency: A significant portion of Snapchat’s revenue comes from advertising, making it vulnerable to shifts in the advertising industry;
- No dividends: As of my last knowledge update, Snap Inc. did not pay dividends, so you won’t receive regular income from holding SNAP stock.
Common mistakes to avoid when buying stocks
Before you invest in Snapchat or any other stock, it’s essential to be aware of common mistakes investors often make. Avoiding these pitfalls can help you make more informed investment decisions:
- Lack of research: Don’t invest in a stock without researching the company, its financials, and its competitive position;
- Overtrading: Avoid constantly buying and selling stocks, as frequent trading can lead to higher fees and taxes;
- Ignoring diversification: Don’t put all your money into a single stock or asset class. Diversify your portfolio to spread risk;
- Emotional trading: Avoid making impulsive decisions based on fear or greed. Stick to your long-term investment strategy;
- Not having a plan: Define your investment goals and create a clear plan for achieving them. Reevaluate and adjust your plan as needed.
Note
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Snapchat stock
Is Snapchat a profitable company?
Snapchat has reported both profitable and unprofitable quarters in its history. Its profitability can vary, so it’s essential to monitor its financial performance.
Can I buy Snapchat stock through a mobile app?
Yes, many brokerages offer mobile apps that allow you to buy and sell stocks, including Snapchat, through your smartphone or tablet.
What is the minimum amount of money I need to start investing in SNAP stock?
The minimum investment amount can vary by brokerage, but you can typically start with as little as $1 to $100 or more.
Are there any fees associated with buying Snapchat stock?
Brokerages may charge fees for buying and selling stocks, but some offer commission-free trading. Be sure to check your brokerage’s fee structure.
Is Snapchat a good long-term investment?
The long-term potential of Snapchat as an investment depends on various factors, including its ability to maintain and grow its user base and generate revenue. Consider your investment goals and risk tolerance before investing.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
