Snap’s much-anticipated IPO has generated a great deal of enthusiasm in the tech and financial communities, as well as here in Los Angeles, the company’s home town.

It is one of the largest tech IPOs in recent memory, and the company is one of the only viable challengers to Facebook’s social media dominance.

Indeed, it is the largest U.S. tech IPO since Facebook’s.

Now that Snap is a public company, not only will it have to live up to its valuation, but it will also have to continue to drive user growth, engagement, and revenue.After two days of trading, Snap Inc. now sits at $27 a share, up 59 percent from its $17 IPO price on Thursday morning, with a market cap of more than $31 billion.

With the debate on Wall Street officially underway, investors must decide where they sit on the bull and bear sides of this equation.

Just this week, Atlantic Equities research analyst James Cordwell downgraded Snap to “neutral”, citing facts like Snap’s average revenue per user is less than 15 percent of Facebook’s, and that the limited amount of user data Snapchat has compared with Facebook could restrict its potential among direct-response advertisers.As a social media messaging app reliant upon capturing an increasing percentage of advertising budgets for growth, Snap could face some inherent barriers going forward, particularly if it has hopes of competing with the likes of Facebook or Google for a portion of those advertising dollars.Commentators will point to TV ad budgets as being squarely in Snap’s crosshairs as it hunts for more revenue.

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