Looks like a typical Wall Street pump-and-dump $cheme:
"Snap earnings lag amid $2.2 billion loss" by Katie Benner New York Times May 11, 2017
Just two months into its life as a public company, Snap is struggling.
Not only did Snap record a $2.2 billion loss for the first quarter, but its revenue was lighter than expected and its user growth decelerated.
The results mark a bumpy start for Snap after its much-hyped initial public offering in March. Since then, the company has been buffeted by competition from Facebook and comparisons to Twitter, the social media service that has suffered from anemic user growth....
(Blog editor snaps fingers)
"Snap IPO could signal thaw for tech companies on deck" by Curt Woodward Globe Staff March 02, 2017
Promising private companies can still raise investment cash in the face of a cold IPO market. Private equity firms started 2017 with an estimated $500 billion on hand to invest in software companies alone, according to research by Boston investment bank Bulger Partners.
But IPOs are vital for venture capitalists to cash in on their investments in startups and pass the profits back to the pension funds and other institutions that invest in their funds.
And if they don't profit? Your pensions and endowments are out, 'eh?
With all due respect, private equity and venture capital (Oscar was co-founded by Joshua Kushner, the brother of Jared Kushner, son-in-law of Donald Trump?) are ruining this country as they impoverish Americans.
The Snap IPO is particularly welcome for Cambridge-based venture firm General Catalyst, which invested in the startup in 2013, shortly after deciding to open a West Coast office. Hemant Taneja, who led the firm’s investment, said Snap’s strong debut was a reflection of “the investor appetite for more tech IPOs.”
Wasn't there some sort of scandal involving them and the governor?
“Hopefully, that is encouraging for these companies that have the opportunity to go public,” he said. “There are a lot of companies out there that have the size and scale to go public and operate as public companies today.”
But one strong IPO, even for a closely watched company, doesn’t mean everything is suddenly rosy in the land of startups. Ben Bajarin, a tech industry analyst at Creative Strategies Inc., said there is significant worry among Silicon Valley entrepreneurs that growth expectations may be too high for tech companies.
He pointed to the example of Twitter Inc., which has seen its share price plummet amid stagnating user growth.
That's because it's for elites only.
“I think we’re going to need to see both institutional and midsize investors who pull a lot of weight to have a more realistic expectation about tech IPOs, and not think everything is the next Facebook,” he said....
Related: Silicon Valley high school makes $24 million from Snap IPO
Then the reali$m kicked in:
"Snap shares plummeting days after its successful IPO" by Jonnelle Marte Washington Post March 08, 2017
WASHINGTON — Snap, the parent company of the popular social-media app Snapchat, had a blissfully smooth IPO process that exceeded expectations.
But it turns out some of the company’s new investors may be as fleeting as the messages that users share on the app.
Less than a week after the company celebrated its first day of trading on the New York Stock Exchange, the stock is down sharply. After falling as much as 12 percent during the day, Snap shares closed down by about 10 percent Tuesday. At $21 a share, the company marked two straight days of losses and landed below the $24 it closed at on its first day of trading. The losses may be a sign that some investors are having doubts about the company’s long-term potential, stock analysts say.
‘‘A stock like this is going to be incredibly volatile because there’s so little information about the company’s track record and it’s difficult to extrapolate to the future,’’ said Brian Wieser, a senior analyst at Pivotal Research Group.
Snapchat, which was launched in 2011 by Stanford University students, set itself apart from other social apps by specializing in ephemeral messaging. The messages or ‘‘snaps’’ that users send disappear within minutes or hours and are animated by splashy filters that give users doe eyes, bunny ears, and funny voices. The company also has partnerships with media companies, including the Washington Post, who use the platform to share videos and articles.
"For hedge funds, the news is getting worse. Investors pulled an estimated $25.2 billion from hedge funds last month, the biggest monthly redemption since February 2009, according to an eVestment report. The withdrawals were the second straight for the beleaguered industry, which saw $23.5 billion pulled in June. They bring total outflows this year to $55.9 billion, driven by “mediocre” performance after a number of funds lost money last year, according to Wednesday’s report. “Unless these pressures recede, 2016 will be the third year on record with net annual outflows, and the first since the outflows in 2008 and 2009 — a result of the global financial crisis,” eVestment said. Hedge funds, which charge some of the highest fees in the money-management business, have faced mounting criticism from clients over steep costs and performance that mostly hasn’t kept pace with stock markets since the financial crisis."
Twitter jumps after co-founder says company has to consider a takeover
WhatsApp to begin sharing data with Facebook
Did you $ee who were the underwriters? Ju$t mocking us all, I gue$$.
"After a euphoric public market debut, Snap Inc. shares dropped for the first time in three days after analysts began weighing in with their thoughts on the company’s true valuation. The parent company of disappearing-photo app maker Snapchat priced shares in its initial public offering last Wednesday and they surged 44 percent on the first day of trading. On Friday the stock climbed a further 11 percent. By Monday, five of the seven analysts who cover the company had a “sell” rating on it...."
It is exactly what I $aid it was.