SAN DIEGO, May 11, 2017 /PRNewswire/ -- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by Snap Inc. (NYSE: SNAP) and certain of its officers. Snap operates as a camera company. It offers Snapchat, a camera application that helps people to communicate through short videos and images.
On March 2, 2017, Snap's stock traded as high as $26.05, the same day the Company sold 200 million shares of stock in its initial public stock offering (the "IPO"), raising $3.4 billion in new capital. Since the IPO, Snap's stock has imploded, reaching a high of $29.44 on March 3, 2017, to below $18.00 in pre-market trading on May 11, 2017.
On May 10, 2017, after the market closed, Snap released the first earnings report as a public company and revealed a massive quarterly loss of $2.2 billion. Snap realized an enormous amount of stock-based compensation to employees which accounted for nearly $2 billion of that total. However, even after subtracting stock-based compensation, Snap still lost more money than expected in the first quarter. The Company reported an adjusted EBITDA loss of $188.2 million, more than its revenue total and higher than the average analyst estimate of $180.7 million loss. Snap's Q1 revenue was $149.6 million lower than the $158 million analyst consensus estimate.
Specifically, Johnson & Weaver's investigation seeks to determine whether investors were misled regarding certain statements the Company made about business metrics and financial prospects.
If you are a Snap shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP