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COMING UP:Share Opener Variant 4

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Transcript

00:00:00
>>
NOISE]>>
Investors who haven't already been broken by a near 20% drop in shares of Snapchat parent Snap Inc since its March IPO could be in for some more pain starting Monday. Reuters correspondent Noel explains why.>> Insiders involved in the IPO, venture capitalists who are invested in Snap for the first time were allowed to sell their shares on a market, the first time since the IPO.
00:00:26
Then again on the 14th of August another wave of new shares will potentially hit the market when employees and senior executives at Snap are allowed to sell their shares for the first time since the IPO.>> That could translate to hundreds of millions of shares flooding the market for Wall Street stock that's seen its star already dimmed.
00:00:48
>> Investors in Snap saw the company at the time in March during the IPO as a company that was gonna really challenge Facebook and potentially become the new big social media platform. Since then, things haven't gone as well as planned by Snap. The company's first quarterly report in May met expectations, but still disappointed Wall Street on many levels the stock fell.
00:01:12
>> And there's fear out there that things may have gotten worse since then. While Snapchat is wildly popular with users under 30, by using Instagram to mimic many of Snapchat's features, Instagram parent Facebook may be stunting Snapchat's growth. Making matters even worse for investors, recent quarterly results from Facebook and Google show the two basically have a lock down on online ad dollars, leaving just crumbs for the likes of Snapchat, hardly enough to fund a public company still in its infancy.