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Snapcrap? Snapchat’s IPO Dips Below $17 IPO Price

David Bosley

We previously speculated that Snapchat might be in for a rough 2017, and it’s starting to look more and more like the writing is on the wall. Since reaching the high-water mark in early March, stock prices experienced significant ups and down. But now they’re down… way down.

On July 10th, Snap Inc. [NYSE: SNAP] fell to a low of $16.95 before closing at $16.99. Sources tell CNBC that the IPO was 12 times oversubscribed, and with insiders gaining the ability to start selling their shares at the end of the month, there’s reason for concern.

“While we were hoping for Snap to exhibit a more comfortable growth path, we are reminded that nascent companies sometimes grow in fits and starts, as we decrease our [average revenue per user] assumptions for 2Q17 and beyond as the self-service platform for advertisers saw a delayed launch in June,” Credit Suisse analyst Stephen Ju wrote according to The Street.

If history has shown us anything, trouble is on the horizon. In the 30 days leading up to their lockup expirations, Facebook, Twitter, and LinkedIn fell by an average 24%, and Snapchat is expected to follow suit.

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