Snap had a 150-day lock-up period, which means employees and other insiders will be able to start selling shares on July 31. Some investors are concerned that too many people will try to sell their stock at once and that it will bring the share price down further.
The company reported its first earnings in May and disappointed investors. Its next quarterly results are set to be unveiled in August and could make a significant impact on the stock price.
Snap isn’t the only new public company that has had a volatile ride in recent weeks. Blue Apron debuted late last month and also is trading beneath its IPO price.
July is expected to be a slow month for tech IPOs.