Snap shares continue to sink with end of lock-up periods approaching

Snap Snap Inc, the parent company of photo messaging app Snapchat, has struggled since its IPO in March – seeing its stock sink below its $17 initial sale price – and is coming under mounting pressure as the expiry of lock-up periods creep up.

On the 31 July, insiders and employees will be able to sell shares in the company for the first time since the $3.4bn IPO. However, with that on the horizon, Snap saw its shares fall by as much as 1.7 per cent yesterday (21 July), reports Reuters.

The final day of the month will give early investors the opportunity to sell up to 400m shares, while employees will be allowed to sell another 782m on 14 August – just four days after Snap reports its, expected to be less-than-favourable, quarterly results. Overall, 97 per cent of Snap could be available on the stock market by the end of August. However, there remain questions about how many shares will actually become available on both days, according to JP Morgan analyst Doug Anmuth.