Snap broke its five-day winning sreak on Monday, falling 3.10%.
The streak of gains was the largest in the company’s history as the stock rose 18.43% over the previous five sessions.
Snap’s winning streak came after the company’s most recent lockup period expired. The lockups were designed to prevent company insiders from flooding the market during the company’s initial public offering. Nearly 1.2 billion shares have been unlocked for trading over the last month, and the final 20 million shares will be unlocked on August 29.
Snap co-founders Evan Spiegel and Bobby Murphy have announced they would not be selling any shares over the next year, a move that instilled confidence in Facebook investors when Mark Zuckerberg made a similar announcement after Facebook’s IPO.
Snap was also boosted by positive numbers from its most recent original content endeavour. “Stay Tuned” is a short, twice-daily newscast made through a partnership with NBC. The show has reached 29 million users in the month since its launch, according to the company.
Snap closed Monday trading 20.47% below its March 1 IPO price of $US17.
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