Snap Shares Are Down As Lockup Period Expires

Snap Shares Are Down As Lockup Period Expires

The 150 day lockup period is over for Snapchat – meaning that early investors and employees have the chance to sell up to 400 million shares.

The stock is now trading below its IPO, and given that they’ve been hammered over the past few weeks, it’s hard to determine where the bottom is.

Facebook has provided ample competition for Snap, copying many of Snapchat’s most popular features and adding them into their Instagram platform. This pressure, coupled with bad earnings, has created a situation where investors are starting to get worried. The stock is down 23% in the past month alone.

 

snapchat stock is down

 

It will be interesting to see what direction the company takes in the future. The company is betting big on location based advertising, in an effort to attract advertisers and raise revenues. Wall Street looks for big earnings early on when it comes to tech companies, in order to justify their high valuations. Only time will tell whether Snapchat can start to turn the corner on its losses.

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