Snap shares are down 0.49% on Tuesday, the first trading day after the company posted its first month of gains.
August was the first month in which Snap shares closed higher at the end of the month than at the beginning, tacking on 5.3%.
The company finally was finally able to move out from the shadow of its lockup expirations, where 1.2 billion shares held by company insiders became available for the first time. Investors had worried the newly-unlocked shares would flood the market and drive down prices.
During the recent Hurricane Harvey storm that rocked Texas and Louisiana, Snap’s new “Snap Maps” feature showed its use beyond simple updates from friends. Users were able to watch first-hand accounts of the historic flooding and journalists were able to do some fact checking using the service. A report from the Washington Post said Snap Maps went from being “kind of creepy to really useful.”
Additionally, Snap’s self-service advertising platform is also expected to grow quickly. It was announced last quarter and some analysts, like Mark Mahaney of RBC Capital Markets, said the ad platform will be a big part of the company’s ability to attract new advertisers to the platform.
Snap shares are still 16.29% below their $17 initial public offering price.
- Markets Insider