{"id":7810,"date":"2017-08-02T05:11:23","date_gmt":"2017-08-02T05:11:23","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/snap-hits-record-low-after-getting-rejected-from-the-sp-500.html"},"modified":"2017-08-02T05:11:23","modified_gmt":"2017-08-02T05:11:23","slug":"snap-hits-record-low-after-getting-rejected-from-the-sp-500","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/snap-hits-record-low-after-getting-rejected-from-the-sp-500.html","title":{"rendered":"Snap hits record low after getting rejected from the S&P 500"},"content":{"rendered":"


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Snap shares fell 4% and closed at a record low on Tuesday at $13.10, but it wasn\u2019t just because of the dreaded lockup expiration, which allowed\u00a0some insiders<\/a>\u00a0to finally sell shares.<\/p>\n

Snap faced another devastating\u00a0blow when it was revealed that the company won\u2019t make it into the SP 500, a popular stock market index. The way Snap has divided up its classes of stock have made it ineligible under the new rules, which state \u201cthe SP Composite 1500 and its component indices will no longer add companies with multiple share class structures.\u201d\u00a0<\/a>It\u2019s also ineligible for the FTSE Russell, a major British index because Snap\u2019s public investors don\u2019t have voting rights.<\/p>\n

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First FTSE Russell and now SPDJI. This is a big deal. Turns out there is a limit to anti-democratic stewardship. https:\/\/t.co\/UpczzKzmnG<\/a><\/p>\n

\u2014 Downtown Josh Brown (@ReformedBroker) August 1, 2017<\/a><\/p>\n<\/blockquote>\n

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This is bad news for Snap because a lot of people are investing in overall indices instead of individual stocks. \u201cIt can be a reasonably big source of demand for some of these companies,\u201d said Sam Angus, a partner at Fenwick West.<\/p>\n

The last thing Snap needs right now is more bad news. After pricing its IPO at $17 per share in early March and seeing an initial bump in the stock market, it has mostly been in steep decline ever since. Tuesday\u2019s closing price was less than half of the $27.09 we saw on March 3.<\/p>\n

Snap had a disappointing first quarter earnings results, so there\u2019s extra pressure for it to outperform when it reports next week. Plus, many employees will not be eligible to sell shares until later this month at the next lockup expiration. If enough of them exercise their options, it will send the stock further in decline.<\/p>\n

But some analysts think that the lockup fears have been overblown and that a lot of employees won\u2019t sell shares yet. Plus, for many employees who joined in 2015 or later, their shares are underwater <\/a>and so it wouldn\u2019t make sense for them to sell yet.<\/p>\n

The big question for Snap is whether it will be able to maintain user growth. \u00a0Instagram copied its \u201cstories\u201d feature last year, which seemed to be a big blow to its service.<\/p>\n

Yet Snap has proven to be innovative and could continue to do so. From disappearing messages to stories to AR-enhanced \u201clenses,\u201d the company continues to have new ideas. Perhaps Snap is working on something that will be the next big thing.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/wxK5T39ox-o\/<\/p>","protected":false},"excerpt":{"rendered":"

Snap shares fell 4% and closed at a record low on Tuesday at $13.10, but it wasn\u2019t just because of the dreaded lockup expiration, which allowed\u00a0some insiders\u00a0to finally sell shares. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[10,7,14,15,6,12,11],"class_list":["post-7810","post","type-post","status-publish","format-standard","hentry","category-latest-update","tag-computer-news","tag-downloads","tag-microsoft-download-news","tag-networking-updates","tag-technology-update","tag-wordpress-plugin-download","tag-wordpress-theme-download"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t