In early March, Snap CEO Evan Spiegel received a hefty stock bonus worth about $750 million on completion of the company's initial public offering.
But on Wednesday, a poor reception for Snap's first earnings report wiped out more than that amount of his stake in the cmopany. Snap fell short of Wall Street expectations for revenue and user growth in the first quarter, sending its shares down $5.35, or roughly 23 percent, to $17.66 in after-hours trading. At that level, they're hovering just above their IPO price of $17.
Given the size of their stakes, any $5 drop in Snap's stock price will slash the value of their holdings by over $1 billion. Still, even if the shares drop to $17, their holdings will be worth more than $3.5 billion each.
Source: Bloomberg
Trader I. Ivanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.