Snap Inc (NYSE:SNAP), the firm behind Snapchat, revealed that huge Chinese investment group and games maker Tencent Holdings Ltd now holds a 12% stake.
It comes after the former posted disappointing third quarter results last night after the bell.
Shares slumped as much as 17% as it revealed mush slower advertising revenue and user growth.
Daily active users rose 17% year-over-year to 178mln in the three months to end September, but dropped from the 173 million in the second quarter.
On average, analysts had expected 181.8 million users, while revenue, the bulk of which comes from advertisements, rose to $207.9 million from $128.2 million.
Analysts were expecting revenue of $236.9 million.
Broker behemoth JP Morgan also reportedly downgraded Snap to 'underweight' from 'neutral' with a price target of US$10.00 (down from $14.00).
Snap shares tanked on the day 14.625 to US$12.91.
Snap cofounders lose a combined $1 billion in hours after earnings miss https://t.co/THARPxrW6I pic.twitter.com/2qUpvR1wgr
— Forbes (@Forbes) 8 November 2017
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