Snap Inc’s third quarter loss shows similar trends between Snapchat, Twitter

Snap’s surprise disclosure Wednesday morning that Tencent Holdings, China’s biggest instant messaging company, had accumulated a 12 percent stake initially propped up shares. But the stock later fell as much as 20 percent after at least four analysts cut their ratings.

Snap has now fallen 25 percent since its March IPO, bringing its market capitalization to within $900 million of Twitter’s. Of course, Snap’s valuation is still richer. Twitter is projected to have about three times the revenue of Snap in 2017, and some investors are optimistic the younger company can make a turnaround, like Facebook Inc did in its early days as a public company. In its bid for being exclusive, Snapchat had launched Stories, which was overtaken by photo-sharing rival Instagram. Recently, they have also begun showing exclusive content of TV networks like NBC, to grow their user base.