SAN FRANCISCO May 15 Snap Inc jumped 8
percent on Monday and was on track for its third strongest day
since the social media company's initial public offering,
boosted by filings showing several institutional investors had
owned its shares.
Leading investment firms Fidelity and BlackRock Inc
owned Snap shares at the end of March, regulatory filings
showed, providing a fresh vote of confidence for the Snapchat
parent company. Its stock had plummeted 23 percent late on
Wednesday after its debut quarterly earnings report disappointed
Snap's high valuation, lack of profitability and slowing
user growth have made it a controversial stock on Wall Street
since its IPO on March 1, which was the hottest technology
offering since Facebook's in 2012.
Snap's stock is valued at 44 times the company's expected
sales for the next 12 months, according to Thomson Reuters data.
By comparison, Facebook trades at 14 times expected
sales, and Alphabet is at 7 times expected sales.
Among investors who late on Friday reported owning shares of
Snap at the end of March were Daniel Loeb's Third Point and
Daniel Och's Och-Ziff Capital Management.
Snap's stock was last up 7.75 percent at $20.62. It remains
up 22 percent from its $17 IPO price but down 23 percent from
its highest closing price on March 3.
(Reporting by Noel Randewich; Editing by Meredith Mazzilli)