| SAN FRANCISCO, March 8
SAN FRANCISCO, March 8 Shares of Snap Inc
rebounded on Wednesday following a steep selloff while
an initial rush to short sell the stock appeared to be slowing.
The owner of the Snapchat messaging app had fallen sharply
in the previous two sessions as investors focused on its lofty
valuation following a $3.4 billion public listing last week that
was the hottest technology offering in three years.
Shares of Snap, which has warned it may never be profitable,
rose 3.6 percent to $22.21.
Traders betting against Snap on Wednesday added less than
$50 million in new short sales of its stock, a slower pace than
the day before, when initial short bets jumped to $300 million,
according to S3 Partners, a financial analytics firm.
Short sellers borrow and then sell stocks they think will
fall in value, hoping to profit by buying the stock back more
cheaply later on and then returning it to its owner.
Reflecting a higher supply of Snap's shares and potentially
less demand, the interest rates brokers charged to lend the
shares declined to around 15 percent from as much as 40 percent
on Tuesday, said S3 Partners Managing Director of Research Ihor
Snap has been a roller-coaster ride for traders, surging 59
percent in its first two days of trading, and falling 18 percent
Billionaire investor David Tepper, whose views on markets
and stocks are closely watched by other money managers, told
CNBC on Wednesday he bought shares of Snap in the IPO, sold
some, and would buy again if the price dropped.
(Reporting by Noel Randewich; Editing by Meredith Mazzilli)