Chinese internet giant Tencent has taken a ten percent share in Snap (NYSE:SNAP), with the announcement coming just a day after the company reported a disappointing set of earnings for the third quarter.
The Chinese company have taken a roughly 10 percent stake in Snapchat parent Snap, according to documents released on Wednesday from the Securities and Exchange Commission, furthering their already large investment in the company.
The news will come as a welcome show of confidence in Snapchat, after the social media app shocked analysts with a poor set of figures for the third quarter. Revenue came in at $207.9 million, lower than the $236.9 million expected, with daily active users also well beneath the expected figure of 181.8 million.
Average revenue per user also disappointed, at $1.17 instead of $1.30 expected. The company also posted a net loss of $443.2 million, furthering speculation that the company has been grossly overvalued since its IPO in March.
Snap shares fell over 11 percent in pre-market trading.