BOSTON (Reuters) - Fidelity Investments disclosed on Wednesday it boosted its stake in free mobile messaging app Snapchat in February, despite recent concerns the company is struggling to gain traction with advertisers.
Fidelity mutual funds, which have become one of the largest investors in pre-IPO companies, reported holding larger stakes in Snapchat in monthly holdings updates disclosed on Wednesday. Fidelity funds invested more money in Snapchat as part of an extension of the company's original Series F funding round.
Snapchat is the maker of a free mobile app that lets users send videos and messages that disappear in seconds. There has been concern that Snapchat's estimated valuation, which has topped $16 billion, is not justified because of its uneven revenue stream.
(The story was refiled to show increase in Snapchat's estimated value largely came from more shares being acquired)
(Reporting By Tim McLaughlin)