Snap Stock Slips as Lockup Ends

As expected, shares of Snap sank this morning after some early investors were offered their first opportunity to sell their stock since the company went public in March.

Shares fell 5%, but mostly recovered after curious outsiders bought up stock at the discount. However, shares remain well below the company’s IPO price.

Snap, which has struggled to maintain growth in a saturated market, reports its earnings for the second time as a public firm on August 10. Two days after that, the remaining locked-up shares will be released, allowing employees to sell their stock.

Brian White, an analyst at Drexel Hamilton, says Snap is likely to drop again when the lock-up period fully ends—which may present a buying opportunity for some.

Snap’s primary rival is Facebook, whose portfolio of extremely popular apps—which includes WhatsApp and Instagram—have been pumping out Snapchat-like features.