Homepage / Technology / Snap is falling again as markets worry about Evan Spiegel's power to steamroll shareholders
Jogue Por Dinheiro Actual Em Cassino Onlin Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals


Snap is falling again as markets worry about Evan Spiegel's power to steamroll shareholders

Snap‘s stock is boxed into a corner, and CEO Evan Spiegel’s quest to hoard control of his company may be a factor.

Shares fell more than 2.5 percent on Tuesday morning after the S&P 500 made an unexpected change that will prevent Snap from joining the index. The conflict centers on the co-founders’ decision to make “all stockholder decisions.”

S&P Dow Jones Indices said it will bar stocks that issue multiple classes of shares, effectively excluding Snap, which offers no voting rights to common shares. The move prevents Snap from being included in most major S&P indices. The new policy, however, does not apply to existing components of the S&P 500, including some of the world’s most valuable public companies like, Facebook, Alphabet and Berkshire Hathaway.

“Companies with multiple share class structures tend to have corporate governance structures that treat different shareholder classes unequally with respect to voting rights and other governance issues,” the index provider said in a statement.

By foregoing an S&P 500 listing, Snap could miss out on a growing pool of wealth, as more investors opt for index funds over active fund managers. It also means that Snap will be excluded from one of the most popular benchmarks that the financial community uses to compare its returns to the market.

“It has always been a poor idea for tech companies to maintain control this way,” said Duncan Davidson of Bullpen Capital. “The value of being in the index is much higher today than previously because so much capital is passively invested in ETFs that follow indexes. A stock like SNAP should be in the index due to its market cap,” he said.

Despite the bad timing, Snap — parent of disappearing-photo app Snapchat — has acknowledged the risks of its unusual share setup. In its prospectus, Snap warned: “We are not aware of any other company that has completed an initial public offering of non-voting stock on a U.S. stock exchange. We therefore cannot predict the impact our capital structure and the concentrated control by our founders may have on our stock price or our business.”

But its founders’ white-knuckled grip on voting rights is far from Snap’s only challenge at the moment.

The company’s lockup period is coming to an end, with potential to flood the market with up to 400 million shares owned by early insiders and employees. Snap’s first-quarter financial results showed fewer users and less revenue than analysts expected, amid a steep net loss.

A tumbling share price — it’s fallen nearly 40 percent over the past 3 months — has left the stock at all-time lows this week. And analysts, even from banks that underwrote the IPO, have questioned Snap’s competitive edge against Facebook (which, by the way, also has a unique share structure).

That leaves little to keep shares steady, at least until the company reports earnings this month. Wall Street will watch whether Snap’s “well-telegraphed” user growth is slowing, or actually flattening out, said Jason Helfstein of Oppenheimer internet equity research.

“The question is, ‘Have consensus expectations come down enough?” Helfstein said on “Squawk Alley” on Monday. “We think they could beat. Maybe not by a lot, but they can actually come ahead of the headline beat.”

— CNBC’s Thomas Franck and Reuters contributed to this report.

Source: Tech CNBC
Snap is falling again as markets worry about Evan Spiegel's power to steamroll shareholders

Comments are closed.