SnapchatFAGS Slide To New Lows On S&P Decision to Exclude Companies Who Issue Multiple Class Shares

It’s about time those fucking losers at the S&P did something to push back against the mountebanks who keep splitting up share classes to fleece investors from retaining power via voting rights. This, of course, is a consequence of activist shareholders, aka asshole hedge fund managers fucking with companies, and has little to do with you losers trading from Mom’s cellar.

Source: CNBC

S&P Dow Jones Indices said it will bar stocks that issue multiple classes of shares, effectively excluding Snap, which offers no voting rights to common shares. The move prevents Snap from being included in most major S&P indexes. The new policy, however, does not apply to existing components of the S&P 500, including some of the world’s most valuable public companies like Facebook, Alphabet and Berkshire Hathaway.

“Companies with multiple share class structures tend to have corporate governance structures that treat different shareholder classes unequally with respect to voting rights and other governance issues,” the index provider said in a statement.

“It has always been a poor idea for tech companies to maintain control this way,” said Duncan Davidson of Bullpen Capital. “The value of being in the index is much higher today than previously because so much capital is passively invested in ETFs that follow indexes. A stock like SNAP should be in the index due to its market cap,” he said.

Shares of SNAP hit a new low today — which is both degrading and unfortunate for loyal ‘stake holders.’

Even with the 40% drop in the most overvalued IPO in history, Snapchat is still trading at 30x sales.

I did warn you.