If you are thinking about making a technology investment, you should know that Snap Inc. (NYSE:$SNAP), an American technology company, saw their shares drop by 6% today as of 12:00 pm EDT. The shares of the California-based company dropped following the release of a research note by Anthony DiClemente, who is a Nomura Instient analyst.
Based on data from SensorTower, DiClemente stated that iOS downloads for Snapchat dropped by 40% through the first two months of Q2. Meanwhile, Facebook’s Instagram downloads have skyrocketed over the same time period. This, of course, has clear negative connotations for Snap’s daily active user growth. Plus, analysts are wary of the company’s ability to advance monetization growth “in the near term.” If that wasn’t enough, there is also an approaching lock-up expiration for August, which is when employees and investors will be eligible to unload shares.
Before the initial public offering, Snap Inc. had tried to gather agreements from investors who hold around 50 million shares. They wanted these investors to agree to separate lock-up agreements, which would require them to hold shares for one full year. There is evidence to suggest that Snap was unable to secure those commitments from investors. For those interested, the IPO lock-up expires on July 29, 2017.
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