Snap post-IPO lockup period has ended, letting early investors to sell shares as the Snapchat parent struggles vs. Facebook competition. Meanwhile, Tesla investors will weigh in on Model 3 pricing and features, with earnings due on Wednesday. Otherwise, Wall Street will be looking forward to Apple earnings on Tuesday.
Early investors in Snap will get a chance to sell hundreds of millions of shares on Monday, as a “lock up period” ends for the March IPO. More shares will be eligible by the end of August.
Snap fell more than 2% in premarket trading on the stock market today.
Snap’s stock has plunged 22% in July so far, hitting record lows in part due to lock-up fears. But more broadly, the Snapchat operator faces serious questions about user growth and long-term profitability due to Facebook competition. Facebook has successfully cloned many popular Snapchat features, notably via Instagram Stories.
Since Snap’s March 1 IPO, Facebook has added $101.5 billion to its market cap, bringing its total to just under $500 billion. That $101.5 billion gain is more than six times Snap’s current overall valuation of $16.3 billion.
Snap will release second-quarter financials on Aug. 10.
Tesla handed over the keys to 30 initial Model 3 customers. Tesla also finally unveiled pricing and features for the entry-level luxury sedan, as well as a look inside.
Tesla’s base price is $35,000, and it comes with a battery range of 220 miles. At $44,000, you can get a Model 3 with a 310-mile range.
The Model 3 has an extremely minimalist interior, with a 15-inch, horizontal monitor serving traditional dashboard functions.
CEO Elon Musk conceded Friday night that Tesla faces at least “six months of production hell” to ramp up the Model 3 from quasi-handmade to mass production. Tesla shares tumbled in early July on concerns about Model 3 production as well as lower-than-expected second-quarter deliveries of the current Model S and Model X.
Tesla shares rose 2% last week, but found resistance at their 50-day moving average. Tesla edged up 0.3% in premarket trading.
Tesla will release second-quarter financials on Wednesday after the market close.
Not many companies are reporting on Monday, but earnings season heats up again on Tuesday, with Apple set to release fiscal third quarter results.
Apple is in a flat base with a buy point of 156.75. Shares fell 0.7% to 149.50 on Friday, closing slightly above their 50-day moving average after dropping below that key support level for a second straight session.
Apple rose 0.3% to about 150 in premarket action.
But Apple investors, like Tesla’s will be looking ahead for statements or hints about whether the next iPhone will be delayed past September, and by how much.