2017.07.2023:23:00UTC+00Snap Pressured as Investors Eyes End of Lock-up Periods

Snap Inc. shares were pressured with the prospect of newly available shares on Wall Street, further weakening the support for the Snapchat app-owner.

The company's shares edged down by as much as 1.7 percent as analysts shift their attention on the expiry of share lock-up periods beginning the end of July, when insiders and employees will have the right to sell their Snap shares for the first time since its initial public offer in March.

Analysts see the impending availability of more Snap shares as a possible trading opportunity. But King Lip from Baker Avenue Asset Management recommends to avoid viewing Snap as a long-term investment.

Snap shares had been under pressure since its dramatic and market-hot debut in March. In the previous week, its stock slid below its initial sale price of $17 as investors grow more concerned regarding its slowing subscriber growth and increasing competition from Facebook.

MoffettNathanson slashed its price target from $11 to $9. Analyst Michael Nathanson also cautioned that he lock-up expiry will put pressure on Snap's shares and Snapchat was being peddled too pricey by some advertisers.