Snap’s stock lockup expired over the weekend, which meant Monday was the first full day that most early shareholders were legally allowed to trade the company’s stock on the New York Stock Exchange.
Many thought that Snap’s stock would tank as people rushed to cash out some of their shares. It didn’t. Despite a higher trade volume than any day since May, the stock fell just 1 percent and was up ever so slightly in after-hours trading.
There are a couple possible explanations here:
- Snap’s stock is near an all-time low. No one wants to sell at the bottom.
- Even though the lockup expired, Snap’s current employees couldn’t really sell on Monday. Snap reports earnings next week, and employees are in a pre-earnings blackout period, which means that even though they are finally allowed to sell, they’re not actually allowed to sell. A lot more shares will most likely be eligible for trading beginning Aug. 14.
Snap’s stock closed Monday at $13.67, down 43 percent since its $24 trading price on its IPO day in March.
This article originally appeared on Recode.net.