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Snapchat Co-Founders Share $2.7 Billion Windfall

(Bloomberg) — Snap Inc.’s co-founders got richer by billions of dollars in just a few hours, after the company reported better-than-expected results as the coronavirus pandemic boosted usage of its app.Shares soared as much as 25% to $35.57 in late New York trading Tuesday after the owner of the popular Snapchat mobile app said sales jumped 52% to $678.7 million in the third quarter, with 249 million daily active users. The gains lifted the fortunes of Snap’s co-founders, Evan Spiegel and Bobby Murphy, by $1.3 billion and $1.4 billion, respectively, taking them to $6.9 billion and $7.2 billion, according to the Bloomberg Billionaires Index.Spiegel has pocketed over $200 million from Snap stock sales during 2020, benefiting from the record prices. The sales were made between January and September as part of a trading plan adopted by Spiegel, according to SEC filings. Snap shares have climbed 74% this year.Wealth accumulation in the tech world has been eye-popping during the pandemic as the shift of everything from work, shopping, schooling and entertainment online has boosted demand for digital services. Zoom Video Communication Inc.’s Eric Yuan added $6.6 billion to his net worth in just one day last month, and Amazon.com Inc.’s Jeff Bezos, the world’s richest person, saw his fortune swell by $75 billion in 2020 to $190 billion.Snap, whose Snapchat is used to send photos and videos that disappear within seconds, said its net loss narrowed to $200 million, or 14 cents a share. The company posted profit of 1 cent a share excluding some costs, beating the 5 cent loss that analysts predicted. If the positive advertising trends continue, fourth-quarter revenue may jump 47% to 50% from the same period last year, Snap added.(Updates with details of share sales in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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