Snap Inc's stock surged 8.08% during intraday trading on Tuesday, following reports that activist investor Irenic has built a significant position in the social media company.

Bloomberg News reported that Irenic's economic interest in Snap's Class A shares is around 2.5%, indicating a substantial stake by the activist firm. The involvement of an activist investor often signals potential strategic changes or value-unlocking initiatives that can boost investor confidence and drive share prices higher.

The news of Irenic's stake building comes amid broader market attention on social media platforms, but it was this specific development that appeared to catalyze the sharp price movement for Snap during the trading session.