Snap stock hits lowest level since IPO after paltry earnings

NEW YORK (AP) — Shares of Snap Inc have fallen 14 per cent after the parent company of Snapchat reported paltry earnings.

The stock hit its lowest level Friday since the company went public in March.

Adding to the uncertainty, employees will be able to sell their stock tomorrow, when a lockup period that follows the company’s initial public offering expires.

An earlier lockup expired in July, but tomorrow, more shares will be eligible for sale.

Snap’s shares fell $1.94 to close Friday at $11.83.

That’s well below the company’s $17 IPO price. And it’s less than half of the $24.48 that the stock closed at on its first trading day.

Snap CEO Evan Spiegel said Thursday that neither he nor co-founder Bobby Murphy plan to sell any stock.

The Snap Inc logo appears on a screen above a trading post on the floor of the New York Stock Exchange. - AP
The Snap Inc logo appears on a screen above a trading post on the floor of the New York Stock Exchange. – AP