Market Insider

Snap Interactive shares briefly popped ahead of Snap's IPO

Paltalk screen image
Source: Paltalk

There may have been some confusion here.

Shares of tech company Snap Interactive, whose market cap totals just $51 million, surged more than 17 percent Thursday ahead of social media company Snap's initial public offering.

The stock later erased those gains after Snap opened for trading, closing the day down more than 4 percent.

Snap Interactive, traded under the ticker symbol "STVI," develops social networking and dating applications, according to its website. For example, Snap Interactive created online video chat community Tinychat and a video chat app called Paltalk.

This is not the first time this has happened.

Back in February, when Snap detailed its IPO plans, shares of New York-based Snap Interactive surged to highs above $20.

"As a policy, we don't speculate on stock price," Snap Interactive CFO Judy Krandel told CNBC in a phone interview. "We're all in the social media space," she added, referring to the excitement surrounding Snap's public debut. "But we are a new story."

STVI three-month performance

Source: FactSet

Disclosure: NBCUniversal is an investor in Snap.