BOSTON, March 8 Billionaire investor David
Tepper, whose views on markets and stocks are closely watched by
other money managers, said on Wednesday he bought shares of Snap
Inc in its initial public offering, sold some, and
would buy again if the price dropped.
"We bought it on the new deal. I like the company. My
youngest daughter loves it. Anyone between 12 and 25 loves it,"
Tepper, who runs Appaloosa Management, said about the Snapchat
owner in an interview on CNBC. But Tepper said he already sold
some shares as the price marched higher. "I don't own every
share we bought."
The highly anticipated $3.4 billion offering was the biggest
U.S. technology IPO since Alibaba Group Holding Inc in
The owner of the messaging app popular with millennials
priced its offering at $17 a share last week, higher than the
expected range despite concerns about the loss-making company's
slowing user growth. It closed the first day of trading with a
44 percent gain at $24.48.
Shares have since retreated, however, closing on Tuesday at
$21.40 after analysts gave the company a lukewarm reception.
There has been considerable speculation about which
investors in Snap's IPO would hold shares for the long term. The
company said last week it expected investors buying up to a
quarter of the shares in the IPO to agree not to sell them for a
Tepper said he told Snap's bankers that he would not keep
holding the shares at any price.
"If it gets into high 20s, I'm going to have to sell it. I
can't love stocks at every price." He said that if the price
moved above $31 a share, for example, he would have sold all of
Yet at a lower price, he said he might be tempted to buy
Snap shares again.
"If it goes back down and I think it has the same prospects,
I will buy more," he said.
He called it a "valuation thing" and other investors
appeared to respond to his fundamental confidence in the
company. While shares were lower in pre-market trading on
Wednesday, Tepper's comments gave them a small boost.
(Reporting by Svea Herbst-Bayliss; Editing by Meredith