Oh snap! Snappers snap up the wrong Snap stock

Oh snap! Snappers snap up the wrong Snap stock
PHOTO: AFP

The early bird doesn't always catch the worm.

Especially not for a particular group of eager investors who invested in the wrong company.

Since popular photo-sharing app Snapchat officially filed for an IPO on Feb 3, a lesser known startup called SNAP Interactive Inc has surged 164 per cent, Bloomberg reported.

It was a costly case of mistaken identity.

SNAP Interactive Inc is a mobile dating app which goes by the ticker "STVI" on the New York Stock Exchange, while Snap Inc - the parent company of Snapchat - will trade as "SNAP".

Snap Inc is reportedly seeking to raise US$3 billion (S$4.25 billion) when it goes public in March with a possible valuation of US20 million to US$25 million.

This is not the first time investors have jumped on the wrong bandwagon.

In 2013, electronics retailer Tweeter Home Entertainment Group Inc. surged as much as 1,500 per cent after social media company Twitter Inc. filed for its IPO, Business Insider reported.

The once bankrupt retailer was listed as "TWTRQ" while Twitter trades as "TWTR".

 
debwong@sph.com.sg

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