Investors are piling into Snap Inc. today (up over 7%) after hedge fund 13Fs over the weekend showed Appaloosa, Third Point, Soros, and Blackrock (among others) were all holders of the 'camera' company at the end of Q1...

Having dropped to as low as $17.07 (just 7c above the IPO price), the fact that these asset managers were holding the stock above $22 six weeks ago is apparently a reason to buy?

 

But they would not be the first to lose their IPO price if this epic buying scramble should fail today. As Statista's chart below illustrates, many tech companies that went public this decade fell below that symbolic mark sooner or later, the question being whether or not they are able to come back up. While Facebook did so in impressive fashion and is currently trading at nearly four times its former IPO price, many others have yet to recover and maybe never will.

Infographic: Falling Behind | Statista

You will find more statistics at Statista

Some analysts are already predicting a similar fate for Snap, which has yet to prove it is really worth its current market capitalization of more than $20 billion. Still far from profitable, the only thing that could justify the company’s lofty valuation would be explosive growth. Many investors had hoped for that to show in last week’s results, but as the numbers fell short of expectations, many jumped ship (and given the volumes, one wonders if the aforementioned 13F-holders were not among the dumpers who escaped at a profit over their IPO allocation).