Snap employees will soon be able to sell their stock. Here’s what that means for Snap’s stock price. - Recode

Another facet of Snap's ephemeral value proposition

"Typically, the end of a lock-up period means that lots of investors, and especially early employees, rush to sell the stock. Many of them have been waiting years to turn their stock awards into actual cash. It’s also usually a milestone that some long-term, vested employees use as a reason to leave the company, which is certainly a possibility with Snap. That’s a bigger issue in the long run than a dip in the stock price.

Regardless, there will soon be a whole lot of Snap stock eligible to trade on the public market. Citi Research projects that the lock-up’s expiration will free up 949 million new shares for trading, significantly more than the current float, which is 230 million shares, according to Snap’s S-1."

Snap employees will soon be able to sell their stock. Here’s what that means for Snap’s stock price. - Recode