Snap hit another record low on Monday with shares dipping as low as $US14.02 in early action.
Snap is approaching the expiration of its lockup period at the end of the month. July 31 will be the first time many company insiders will be able to sell their shares after the initial public offering.
Investors are worried a flood of new shares will push prices lower once the lockup expires. JPMorgan estimates 1.2 billion more shares will be available for trading for the first time by the end of August.
Some investors are less pessimistic, and see the lockup expiration as a buying opportunity. Barclays says the time to buy will be immediately after the lockup.
Additionally, Stifel says Snap is not aimed at research analyst aged people, and that its stock is artificially low because investors simply don’t understand the app.
The company has been doing its best to convince investors it’s worth their money. The company has released new advertising channels, including its Snap Maps feature, and has also released a new ad platform that could make it easier for advertisers to buy ads on the platform.
Snap shares have fallen 16.5% since their initial public offering.