Technology StocksSnap, Inc.

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To: Glenn Petersen who wrote (27)5/13/2017 1:26:46 PM
From: Intelim
   of 56
This was a matter of time. Snap can might become Twitter than Twitter itself did.

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From: Intelim5/27/2017 5:06:33 PM
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With Snapchat’s new 5-minute shows, it’s starting to look a lot like a TV network

Gotta try to stay relevant, amirite?

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From: Intelim5/30/2017 4:07:16 PM
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Why Snapchat Marketing Stinks Big Time

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From: Glenn Petersen6/9/2017 1:21:46 AM
1 Recommendation   of 56
Snap Is Year's Most-Shorted Tech IPO Before Lockup Ends

by Alex Barinka and Sarah Frier
June 8, 2017

-- Short interest in Snapchat parent rises to 28% of free float

-- Facebook faced half as much shorting at same point after IPO

Snap Inc. is the most-shorted tech initial public offering of the year, with a growing number of traders betting the stock will fall.

Investors are skeptical that the company, which owns the Snapchat photo-sharing app, can grow quickly enough to justify its valuation -- now at about $22 billion -- given aggressive competition from Facebook Inc., which has been copying some of Snapchat’s features. That’s helped drive short interest in Snap up to 28 percent of the free float, or shares available to be traded publicly, according to data from Markit Group Ltd. The increase comes before the first lockup expiration on the shares -- on July 30 -- when certain stakeholders and executives will be free to unload their positions for the first time since the March 1 IPO.

The stock fell 3.6 percent to $18.85 at Thursday’s close in New York. Earlier, the shares dropped as much as 7.1 percent for the biggest intraday decline since May 11, the day after Snap’s earnings report showed the company missed user growth and sales estimates. The shares sold for $17 apiece when the company went public in March.

“It looks like short sellers are positioning themselves for a dramatic selloff in Snap’s stock price after the lockups expire,” Anthony DiClemente, an analyst at Nomura Instinet, wrote in a research note on Wednesday.

An investor successfully shorts a stock by borrowing a number of shares from a broker, paying the broker a stock-loan fee and interest for the loan, and then selling the shares at the current share price. If the stock price declines, the investor then buys the same amount of stock at the lower price, returns the shares to the broker and pockets the difference.

DiClemente noted that there are more than $1 billion in Snap shares sold short, and with so few shares left to borrow, the cost to finance short positions has risen to 37 percent, compared with a 1 percent fee in May. The harder it is for brokers to get their hands on shares available to be lent out, the more the stock-loan fee typically increases.

Though the shares were up about 11 percent since the IPO at Thursday’s close, the percentage of Snapchat sold short as of Wednesday was about double Facebook’s short interest at the same point -- 68 completed trading days -- after it debuted as a public company. At the time, Facebook was facing serious doubts about its ability to make money from mobile advertising, causing the stock to lose half its value in the first six months of trading.

Facebook has since recovered as it mastered mobile ads, and as revenue has surged its stock has more than quadrupled since the IPO. Twitter Inc., which went public in 2013, had short interest of 40 percent at the same number of days after its IPO, and its shares remain about 32 percent below their initial price.

Snap’s stock has the highest short interest of the 14 technology and communications companies that have listed in the U.S. this year. It’s trailed by Carvana Co., at 22 percent of its free float, and Yext Inc. at 19 percent, according to Markit.

While investors can use short interest and options trading as a hedge to mitigate risk on long positions, Snap’s trading is overwhelmingly bearish. The top nine most-owned options are all puts -- or contracts that can be exercised if the stock falls below the exercise price.

The January 2018 $15 put options, with an exercise price 23 percent below Wednesday’s $19.56 close, had the highest open interest, which is the number of contracts outstanding, according to data compiled by Bloomberg.

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From: Sr K6/17/2017 8:54:59 AM
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on the Russell rebalance following the close June 23:

Tech to see bump in growth weighting in Russell rejig



One widely-followed stock that will not be joining a Russell index yet is Snap Inc. Due to the company's unusual share structure, Russell is withholding a decision until after the rebalance until an analysis and comment period from the investment community is completed.

"We need to look at it because there is a potentially a trend for these types of offerings, particularly technology companies," said Mat Lystra, senior research analyst at FTSE Russell in Seattle.

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From: Glenn Petersen7/10/2017 4:25:59 PM
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Snap closes below $17 IPO price amid fears insiders will dump shares

  • The IPO was 12 times oversubscribed, sources told CNBC in March.
  • But shares have tumbled from their March 3 high.
  • At the end of the month, insiders can begin selling their shares.
Anita Balakrishnan | @MsABalakrishnan
10 Mins Ago

Lucas Jackson | Reuters
Snap cofounders Evan Spiegel (R) and Bobby Murphy walk to ring the opening bell of the New York Stock Exchange shortly before the company's IPO in New York, March 2, 2017.

Shares of Snap fell below their IPO price on Monday, just ahead of a crucial period for the social media stock.

Snap shares dipped to a low of $16.95, closing at $16.99, just below the $17 price of the March public offering.

The IPO was 12 times oversubscribed at the time, sources told CNBC. But since then, shares have tumbled from their March 3 high of $29.44.

Snap, which makes ephemeral messaging app Snapchat, is about to see the end of its lock-up period. When that period hits at the end of the month, insiders can begin selling their shares.

Facebook, Twitter and LinkedIn fell an average of 24 percent in the 30 days ahead of their lockup expirations, according to MKM Partners. Snap shares have fallen nearly 19 percent in the past three months, and about 6 percent over the past month.

— CNBC's Evelyn Cheng contributed to this report.

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From: Glenn Petersen7/15/2017 9:18:46 AM
1 Recommendation   of 56
Snap had acquisition talks with AdRoll and is actively shopping for ad tech startups

Alexei Oreskovic and Alex Heath
Business Insider
July 14, 2017

Snap Chief Strategy Officer Imran Khan is responsible for growing the company's fledgling ad business.Reuters

Snapchat is shopping for ad tech companies to help bolster its appeal to marketers, a process that led the company to have acquisition talks with AdRoll, Business Insider has learned.

Snapchat's main targets are startups in the marketing tech and ad tech sectors, as the social network owned by parent company Snap Inc. seeks to grow its ad business and allay investor concerns that have punished its stock price.

"They're looking for some business, or a set of businesses, that can help them demonstrate the efficacy of their ads," a person familiar with the matter told BI. Snap acquired Placed for reportedly over $200 million in June to give it access to third-party measurement on tracking real-world purchases and store visits.

Discussions with San Francisco-based AdRoll began shortly before Snap's March IPO and continued after. Although there were multiple meetings between the two companies, an offer price was never put on the table and AdRoll is currently in more serious discussions with several other bidders, the person said.

A Snap spokesperson declined to comment for this story. AdRoll didn't respond to multiple requests for comment on Friday.

AdRoll has raised roughly $91 million in venture capital funding to date and claims to be the most widely-used independent programmatic advertising platform, with more than 35,000 customers. The company is borderline profitable and on pace to do over $300 million in revenue this year, another person familiar with its business said.

Feeling the pressureBuying AdRoll would give Snap a deeper foothold in ad targeting and campaign management along with e-commerce expertise, a third ad industry insider told BI.

"Snapchat buying AdRoll would be somewhat analogous to Google buying DoubleClick," the person said, referencing Google's blockbuster $3.1 billion purchase from 2007 that signaled its push into online advertising beyond its own scope.

Although incredibly popular with younger users, Snap is under pressure to convince advertisers that its ads can deliver, especially compared to proven rivals like Facebook and Google.

Snap's stock sank below its $17 initial public offering price this week, as a series of Wall Street analysts downgraded the stock due to Snap's slower-than-expected growth and fierce competition from Facebook-owned Instagram.

"We have been wrong about Snap's ability to innovate and improve its ad product this year (improving scalability, targeting, measurability, etc.) and user monetization as it works to move beyond 'experimental' ad budgets into larger branded and direct response ad allocations," Morgan Stanley analyst Brian Nowak wrote in a note to clients earlier this week.

Although Snap's talks with AdRoll have not gotten serious enough to progress to an offer, Snap is actively looking at other firms in the broad and increasingly overlapping field of advertising and marketing technology. Another name that has been bandied about as being on Snap's radar is Segment, a customer data tracking tool for marketers, although it could not be learned if the two companies have had deal talks.

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From: da_cheif™8/1/2017 3:26:11 PM
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Message 31011253

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From: Glenn Petersen8/3/2017 10:16:01 PM
   of 56
Insiders say Google was interested in buying Snap for at least $30 billion last year

Alex Heath
Business Insider
August v3, 2017

Snap CEO Evan Spiegel. Reuters

We keep hearing that Google floated an offer of at least $30 billion to buy Snap in early 2016.

Three people, including people inside and close to the company, separately confirmed they had heard the chatter and price tag, with one calling it an "open secret" among Snap's upper ranks and certain tech industry circles.

Business Insider first heard the rumor of Google's $30 billion-plus interest in Snap last year and heard further tales of the discussions from more insiders over the past several days.

It's unclear how formal the discussions these insiders say happened may have been, but Snap and Google have long been close. Informal discussions between companies are frequent in the tech world, especially surrounding major events, like an initial public offering or a large round of fundraising.

Google's initial offer would have been discussed just before Snap raised its Series F round of private funding in May 2016, valuing the company at $20 billion. CapitalG, the growth equity fund managed by Google's parent company, Alphabet, ended up quietly participating in the round.

One person said Google and Snap also had discussions about a potential buyout just ahead of Snap's IPO in March, and that an offer in the ballpark of $30 billion had been on the table since the IPO.

Chatter that Snap passed up a chance to sell to Google for at least twice its current value could be especially painful for investors and employees grappling with the company's sinking stock. Snap's shares are trading at around $12.50, and it has a market cap of roughly $14 billion, well below the $24 billion valuation at which it priced its IPO.

When asked for comment, a Snap representative told Business Insider that as far as formal discussions go, "these rumors are false." Google declined to comment.

One possible motivation behind the rumors is that people are hoping Snap will get acquired. But the rumors have persisted for months, and they're being talked about as fact both inside and outside the company by lots of people in a position to know.

Why a deal between Snap and Google would make sense

Alphabet Executive Chairman Eric Schmidt. REUTERS/Rebecca Naden

The two companies are already close. Sources say there is mutual respect between each side's leadership, and Alphabet's executive chairman, Eric Schmidt, is an early adviser to Snap CEO Evan Spiegel. Snap is one of the largest customers of Google Cloud and uses Google's suite of apps internally.

Google has always wanted to own a hot social network and has tried several times with products like Google Plus and Google Buzz. In 2013, it was rumored that Google had tried to grab Snapchat for $4 billion as Spiegel turned down an offer from Facebook CEO Mark Zuckerberg.

Joining forces with Google could also help Snap better monetize its platform — Google is raking in the vast majority of all digital ad money — and it could be a good way for Spiegel to stick it to Zuckerberg, with whom he has had a rocky relationship.

And here's why a deal may not work

27-year-old Spiegel would ultimately decide whether to sell Snap, and people close to the company say he's fiercely independent and has shown no serious interest in selling. He is widely considered to be a visionary, contrarian CEO who values running his company in Southern California, outside of the Silicon Valley bubble where Alphabet is headquartered.

It's also unclear how Spiegel and his roughly 2,500 employees would integrate into Google or Alphabet. Spiegel doesn't strike us as the kind of executive who would like reporting to a boss.

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From: Sr K8/4/2017 10:37:32 PM
   of 56

Google is developing technology to let publishers create visual-oriented media content along the lines of Snapchat’s “Discover,” upping the ante in a race among tech giants to dominate news dissemination on smartphones.

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