With Lock-Up Expiration Looming, Snap Gets Excluded by a Major Index Provider Over Voting Rights
Tomorrow's the day when Snap (NYSE: SNAP) will see the first lock-up expiration associated with its IPO. That means that when shares begin trading next week, there will be an awful lot more of them to go around.
Specifically, we're talking about another 400 million shares held by CEO Evan Spiegel, CTO Robert Murphy, and early investor Lightspeed Ventures, according to JPMorgan analyst Doug Anmuth. There's another lock-up that expires in mid-August, which will free another 782 million shares that are held by other employees. And at the end of August, another batch (20 million shares) will be freed. Compare that to Snap's current float, which is approximately 188 million shares, and you'll see why investors should be concerned about all those shares hitting the market in short order, which could potentially push the stock even lower.
Image source: Snap.
Source: Fool.com
