Suffice it to say, many financial traders are discovering Snail (NASDAQ:SNAL) stock for the first time today. The company is going from obscurity to fame, with SNAL stock jumping 50% or more this morning. Furthermore, investors are buzzing about Snail’s recently disclosed share buyback program.
If you’ve never heard of Snail, you’re not alone. So, let’s delve into the essentials of this California-headquartered technology company.
To put it simply, Snail produces “interactive digital entertainment,” which mostly means video games. These games can be played on personal computers (PCs), game consoles or mobile devices.
Snail has been around since 2009, but it’s still a tiny company with a market capitalization of around $130 million. Also, the company just enacted its initial public offering ( ) a few days ago, with a starting share price of $5.
As it turns out, Snail may have been an early mover in developing games for the metaverse. Snail Games founder and Chairman Shi Hai claims that the company was “one of the first companies to develop 3D online games in China.”
What’s Moving SNAL Stock Today?
However, today’s financial traders aren’t particularly concerned about Snail’s metaverse connection. Rather, they’re focused on a decision made by the company’s board of directors.
Here’s the lowdown. According to a press release, Snail’s board just authorized a large-scale share repurchase program. Under this program, Snail may repurchase up to $5 million worth of the company’s outstanding Class A common stock.
If you’re hoping for specific dates in this announcement, you’ll probably be disappointed. Snail said the following:
“The repurchase program will go into effect when Snail begins the share repurchase, and the program does not have a fixed expiration date.”
Still, investors seem to be quite pleased with the buyback disclosure. Some 17 million shares have traded hands as of this writing. SNAL stock is currently up almost 50% in value.
Clearly, the announcement is boosting stakeholder confidence. Now, it’s only a question of whether these astounding share-price gains will hold over the coming days.
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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.