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.