SNAP Interactive’s shares have skyrocketed after eager investors confused the company with Snapchat.
It was announced last week that Snap Inc. (the parent company of Snapchat) had filed for an IPO worth a whopping $3bn.
However, some over-eager investors seem to have shelled out in the wrong company, buying shares in SNAP Interactive, a public dating company founded in 2005 that runs flagship brand FirstMet.com.
As a result, SNAP Interactive’s shares soared by 164% in the four days following Snap Inc’s filing for IPO, almost doubling the price of the company’s shares.
SNAP Interactive’s stock is under the ticker “STVI”, whereas Snapchat’s will be “SNAP” when the company does IPO.
This follows the news that SNAP Interactive filed a lawsuit against Snap Inc last October, arguing the company’s use of the “same or virtually same” name was a trademark infringement and caused confusion between the two companies.
Snap Interactive also said it was being “irreparably harmed by the Defendant’s use of the SNAP INC. trade name or confusingly similar variations thereof to refer to its business and to sell and advertise its own products and services.”
Read more about the lawsuit here.