It looks like the bad news for Snap Inc. (NYSE:$SNAP) continues. As the California-based company approaches their lockup expiration, Snap hit another record low on July 24, with shares falling as low as $14.02 in early action.
Snap’s lockup expiration is at the end of the month, and July 31 will be the first time company insiders are able to sell their shares after the IPO.
After the lockup expires, investors fear that a flood of new shares will force prices lower. JPMorgan predicts 1.2 billion more shares will be available for trading by the end of August.
On the other side of the equation, there are investors who are far less discouraged, and view the lockup expiration as a buying opportunity. In fact, Barclays has stated that the best time to buy will be immediately after the lockup expiration.
In addition, Stifel believes that Snap is not working towards research analyst aged people, and that Snap’s stock is artificially lower as investors simply do not understand the logistics of the app.
Over the course of the past year, Snap has been doing everything in its power to convince investors that it’s worth their time and money. The company has gone as far as adding new advertising channels, including the Snap Maps feature, and releasing a new ad platform that makes it easier for advertisers to purchase ads on the platform.
Since the company’s IPO, Snap shares have decreased 16.5%.
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