Founded by three Stanford University students, Snap Inc.’s (SNAP) SnapChat, has become one of the most popular social media platforms in the world, with 178 million daily users. Snapchat took social media by storm with photos deleting after a few of seconds sending them to a friend. Despite a weak earnings report, Snap made headlines as,Tencent, a leading Chinese internet company that also owns popular social media chat app WeChat, upped its investment in the company by 12%, aquriring 145.8 million shares.
Snap went public on March 2, 2017, with an initial offering of $17 per share, however, all has not been well since. The company found it tough to increase its user base rapidly as well generate advertising revenue. Going against a stiff competition from the likes of Facebook, the company reported losses and investors have begun to give up, reflecting a sharp drop in its share price. Its latest earnings report has been disappointing where it reported $824.9 million revenue for 2017 revenue against $404 million the year before. Net loss for the year widened to nearly $3.4 billion, with almost 7.5% of that coming from stock-based compensation expense.
Here’s a look into the main people affected by Snap. Inc’s recent troubles, the top three individual shareholders.
Robert (“Bobby”) Murphy
One of the youngest billionaires on the planet (with a net worth of $2.9B), the 29 year old Bobby Murphy conceived of his photo-sharing app with Kappa Sigma fraternity mate Evan Spiegel. Murphy and Spiegel turned that idea into a global phenomenon, and Murphy has served as the Chief Technology Officer since the inception of the company. As of last SEC filing dated March 2017, Murphy is the top shareholder in Snap stock, holding 91.3 million shares.
The public face of Snap, Evan Spiegel has gained a reputation as a disruptor in the tech industry, most well-known for turning down Mark Zuckerberg’s offer to buy Snapchat for $3 billion. At 27 years old, Spiegel shares many similarities with frenemy Zuckerberg: A former college friend who wants credit or the company, a becoming a billionaire (with a net worth of $3.4B) in his early 20s, and a “move fast and break things” approach to product iteration. Spiegel is the second largest individual shareholder in Snap, with 85 million shares to his name.
Joining Snap in early 2015, the 39-year old Imran Khan is the resident grown up in the Snap house. Khan made headlines a few years before his move to Snap when he organized Alibaba Corp’s (BABA) IPO in 2014, and he had a plan to bring the same strategy to Snap’s public outing. He has served as the Chief Strategy Officer for Snap since joining the company, and has amassed a large pool of Snap stock for himself, making him the third largest shareholder with 10.2 million shares.