Snapchat IPO

Reddit co-founder says he's bullish on Snap IPO due to their dream engagement numbers

Reddit co-founder 'very bullish on Snap'

Hours before the Snap IPO begins trading, Reddit co-founder Alexis Ohanian said Thursday he's "very bullish" on the stock.

But he added that the Snapchat parent still needs to figure out the business side.

There's "a lot of interest" in the photo and video messaging and sharing app that appeals to a younger crowd, he said on CNBC's "Squawk Box." Snapchat has engagement numbers that many companies would only dream of, he added.

A typical daily average user of Snapchat visits the app more than 18 times a day for about 20 to 30 minutes of total activity. With the astounding 158 million people that use Snapchat, there are more than 2.5 billion snaps a day. According to Snapchat, the average user age ranges from 18 to 34 years old.

Ohanian said, "I'd be long on Snap" which calls itself a camera company. But he said he did not buy into the IPO.

In the biggest tech offering since Alibaba in 2014, Snap priced at $17 per share on Wednesday night, at a valuation of nearly $24 billion.

Shares are set to start trading on the New York Stock Exchange Thursday morning under the ticker symbol SNAP.

Besides being a tech entrepreneur, Ohanian is the fiance of tennis star Serena Williams. But he said he had never picked up a racket and never watched tennis before meeting Williams.