Today’s news might be a breath of fresh air for Snap (NYSE:$SNAP) shareholders. On August 14, the California-based company’s stock rebounded from a record low. Why? It can all be traced back to big investors who have been reporting their latest stakes in the social media company and as numerous employees have now become eligible to sell their shares.
In morning trade, Snap shares were up 5.2% at $12.44 after dropping as much as 4.7% to $11.28 shortly after the market opened, which is their lowest point since debuting back in March. As of 10:17 a.m. pacific time, Snap shares are up 7.19% at $12.68 a share.
Starting today, Snap employees are allowed, for the first time, to sell their stock after the IPO. This has the potential to increase the supply of Snap shares in the stock market as well as increase their volatility.
It’s worth mentioning that Monday is also the last day for hedge funds and other institutional investors to disclose their quarter-end holdings of U.S. equities.
All in all, this might not be enough to convince those that are interested in social media investing to put all their eggs in Snap’s basket, but it is nice to see that the stock is fighting for its life.
Featured Image: twitter
