Snap reveals Tencent takes 12% stake as earnings disappoint

It comes after the former posted disappointing third quarter results last night after the bell. Shares of Snap fell as much as 22 percent in after-market trading from its closing price of $15.12, following the earnings report.

Snap also had to write off about $39 million (£29 million) in unsold Spectacles, its camera-equipped glasses that let users take photos and videos without firing up the mobile app from a phone. But on Tuesday, Snap said it was taking a almost $40 million writedown for excess inventory of the product after misjudging demand.

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For Tencent, despite the problems, Snap still represents a major opportunity to sink its teeth into a service that has very little overlap with its current business, and a lot of potential promise if Snap can fix some of its issues. The shares were sold at an average price of $14.59, for a total transaction of $5,836,000.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 2,533,598 shares of company stock worth $35,540,362.

Hedge funds have recently modified their holdings of the company. The company has disappointed investors each quarter since it floated on the New York Stock Exchange in March. Finally, Dubuque Bank & Trust Co. acquired a new position in Snap in the 2nd quarter valued at $137,000.

The Chinese internet giant Tencent has taken a 10pc stake in Snapchat's parent company Snap, a welcome vote of confidence after the messaging app's disastrous results this week.

Details on the redesign are sparse, but there's no doubting the announcement by Snapchat is a big deal in the tech world and in the race for social media superiority in general. This could help boost Snapchat's number of new users which is ideal for the company in the long term.