Snap falls below $17 IPO price for the first time
Snap falls below $17 IPO price for the first time https://csuiteold.c-suitenetwork.com/wp-content/uploads/2017/07/snap-falls-below-17-ipo-price-for-the-first-time.jpg 930 620 C-Suite Network https://csuiteold.c-suitenetwork.com/wp-content/uploads/2017/07/snap-falls-below-17-ipo-price-for-the-first-time.jpg
Snap stock has fallen below its IPO price of $17 for the first time, roughly four months after the maker of Snapchat went public in March.
After briefly touching the $17 threshold in mid-June, Snap’s stock price fell to an all-time low of $16.99 at market close on Monday. That means all the investors who bought into the disappearing-message app company’s much-hyped stock market debut have officially lost money.
Most people who bought Snap stock, which opened its first trading day at $24 — soaring 41% out of the gate — have lost even more. An Uber driver who invested when shares hit $25 on Snap’s IPO day has lost 32% of his money. And Snap has shed more than $10 billion in stock market value in the meantime, with its market cap, which once topped $31 billion, now at about $20 billion.
Even as stocks of competing social media companies such as Facebook and Twitter rose Monday, shares of Snap tumbled more than 1%, as Wall Street fretted that some of its biggest shareholders will dump their stock en masse later this month.
While many of Snapchat’s IPO backers are currently prohibited from selling the stock during what’s known as a lock-up period, the expiration of those restrictions is less than three weeks away, on July 29. Even Snap’s bullish supporters are getting jittery about a potential stock plunge if those IPO shareholders decide to sell the first…
