Shares of Snap surged Monday, tracking for its third-best day ever, as traders gained confidence from filings showing big hedge funds bought the Snapchat parent in the first quarter.
Dan Loeb's Third Point bought 2.25 million shares of the stock, while David Tepper's Appaloosa bought 100,000 shares, according to required 13F SEC filings released Friday. Moore Capital bought 1.33 million shares of the Snapchat parent, according to a Monday filing.
To be sure, the filings are 45 days old, and it is possible these managers have already sold.
Snap shares closed 8.36 percent higher in their best day since March 3, when the stock jumped 11 percent on its second day as a public company. Trade volume Monday in the stock was 69.2 million, about three-and-a-half times the 30-day average of 19.5 million shares.
Snap performance since IPO
Despite their staleness, Friday's filings indicated to some that if top hedge-fund managers bought the social media app's stock, the first earnings report might not be as bad as feared.
Snap shares plunged 21.45 percent Thursday after the company's first earnings report as a public company showed a net loss of $2.2 billion and a disappointing 166 million daily active users.
Analysis from stock trading app Robinhood last week also showed that investors age 30 and younger sold more Snap shares than bought over the last several weeks.
Other hedge funds are scheduled to release documentation on first-quarter holdings later on Monday, the deadline for 13F filings.
— CNBC's Gina Francolla and Chris Hayes contributed to this report.
Disclosure: CNBC parent NBCUniversal is an investor in Snap.