Shares of Snap Inc. (NYSE:SNAP) slumped again on Friday, closing about 2.75% lower and touching a new all-time low during afternoon trading hours. The struggling social media stock is now nearly 15% below its IPO price.
After closing at $14.89 per share on Thursday, Snap slipped as low as $14.34—a new all-time bottom—on Friday afternoon.
It’s been a light news week for Snap, which felt the full force of several critical analyst reports last week, but the stock has been heading lower regardless. In fact, one of the few major stories we saw from the company this week is probably a good thing for the company.
Earlier this week, we learned that Snap partnered with NBC News to produce a twice-daily headline news show, called “Stay Tuned,” for the Snapchat app. “Stay Tuned” began airing on Wednesday and is the first ever daily news show on Snapchat.
The show is supported by sponsorships and advertising, and NBC will reportedly share a portion of its ads revenue with Snap. Comcast (NASDAQ:CMCSA)-owned NBCUniversal invested $500 million in Snap during the company’s IPO.
Nevertheless, Snap shares lost about more than 5% of their value during the week. This weak momentum comes as investors are starting to eye the company’s post-IPO lockup expiration date.
When a company goes public, its employees are temporarily barred from selling their equity for a certain period of time. For Snap, this window is set to close on July 31, and that means new shares could flood the market and send the stock even lower.
Holding SNAP over the next few weeks will not be an activity that I recommend for the faint of heart. There is even more volatility on the horizon, and if you’re an investor that likes to avoid risk, this Zacks Rank #4 (Sell) stock is probably not your best bet.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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