Snap shares are skyrocketing on Thursday, trading up 5.86% at $US15.35 a piece, despite a lack of news from the company.
Investors maybe responding to comments made by Disney CEO Bob Iger at a Bank of America Merrill Lynch conference on Thursday.
Iger said that recent merger and acquisition activity would continue for Disney. Investors have cited Disney as one potential home for social media rival Twitter. As shares have floated near historic lows for Snap, investors could be hoping the company could also be in Disney’s crosshairs.
There have been previous reports of interest in Snap. Google offered to buy the company for as much as $US30 billion last year. Snap is valued at about $US12.41 billion at its current share price. Snap CEO Evan Spiegel and Alphabet’s Executive Chairman Eric Schmidt have a close relationship but Spiegel has thus far left any offers from Google on the table.
Facebook also reportedly offered to buy Snap several years ago but was turned down also.
Snap shares posted their first monthly gain in August after breaking out from the shadow of its lockup expirations, where company insiders were able to sell more than 1.2 billion shares for the first time.
Snap went public at $US17 per share and hit a high of more than $US27 a few days later before tumbling to a low of $US11.28. In a technical analysis of the company’s stock price, Business Insider suggested the charts pointed to shares hitting $US16 in the near futures after breaking out from their “double bottom” pattern.
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