US Stock Movement | Snap (SNAP.US) Rises Over 6% as Hedge Fund Urges Bringing in External Capital for Specs, Potentially Unlocking Shareholder Value

Zhito Finance APP has learned that on Friday, Snap (SNAP.US) rose more than 6%, reporting $6.24. On the news front, hedge fund Blue Duck Capital Partners wants Snap Inc. to sell a partial stake in its Specs business to raise funds. Blue Duck Chief Investment Officer Alex Beinfeld recently said in a letter to Snap's board that Snap is "severely" undervalued and that raising funds for Specs would unlock considerable shareholder value. He said a financing centered on Specs would help support related spending without diluting Snap's share count and would preserve its cash flow. Not only that, it is expected to help the company lower the roughly $2,200 price of Specs. He believes that selling a 20% stake in the Specs subsidiary at a $5 billion valuation would raise $1 billion, enough to support the unit's spending for about two years.