According to regulatory filings posted late Friday, Loeb's Third Point LLC sold off its stake of 2.25 million shares, worth $50.7 million. Third Point purchased the shares in the first quarter of 2017.
David Tepper, another famed hedge fund manager, also dumped his stake in Snap during the second quarter, according to filings released on Monday afternoon. Tepper's fund sold off all 100,000 of its shares, worth $2.25 million. The billionaire investor bought shares of Snap at the time of its IPO in March, saying he liked Snapchat's huge appeal among millennials and teens.
Snap went public to great fanfare in March, completing the largest U.S.-listed technology offering since Alibaba Group Holding Ltd. (BABA - Get Report) in 2014 with a valuation of $33 billion. Since then, Snap's shares have lost more than half of their value. The stock fell below its $17 IPO price in July and the Snapchat parent company has failed to meet Wall Street's expectations for the past two quarters.
Shares of Snap closed higher by 6.5% to $12.60 on Monday. The stock has stumbled 48% so far this year, however.
While Third Point ditched its stake in Snap, the firm increased its position in Snap's foremost rival, Facebook Inc. (FB - Get Report) . Third Point raised its stake by 500,000 shares during the quarter, bringing its holding in the tech giant to 3.5 million shares, worth roughly $528 million. Elsewhere, Third Point sold off its shares of Salesforce.com Inc. (CRM - Get Report) after purchasing a stake one quarter earlier. The firm also exited its stake in Qualcomm Inc. (QCOM - Get Report) and reinitiated its stake in Alibaba.
Facebook has successfully integrated many of Snapchat's core features across nearly all its properties, including Instagram, WhatsApp and Messenger. The moves continue to make a dent in Snap's user growth, revenue and ad business, which has heightened investors' concerns about its ability to live up to Wall Street's lofty expectations. Instagram Stories recently said it reached 250 million daily active users, while Snapchat is trailing it with 167 million daily users.
Third Point has a long-standing record of delivering strong returns to investors, with total returns for the year at 10.7%, according to Reuters. By comparison, the S&P 500 returned a total of 9.4% in 2016. Loeb has launched several proxy campaigns in the U.S. to drive share-price improvements, most recently at Nestlé SA (NSRGY) . In May, Loeb called for changes to Dow Chemical Co. (DOW) and DuPont Co.'s (DD - Get Report) post-merger plan, suggesting it break up into six companies instead of three.
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