Daily Mail

Investors set to ditch Snapchat

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SOCIAL media firm snapchat will face fresh pressure this week as many of its early investors are given the opportunit­y to sell off their holdings for the first time.

a lock-up period which has prevented shareholde­rs who backed snapchat at its IPO from cashing in their stake will expire saturday, 150 days after its flotation on the Us market valued the firm at £18.5bn. With shares in its parent app - snap - falling below their £13.10 float price in recent weeks, many of these early investors will have already lost money.

since listing, the photo messaging app has struggled against pressure from rival Facebook, which has been busy introducin­g similar features on its own social media sites.

When snap revealed its maiden results as a listed company in May, the firm’s shares sank by 23pc in just 45 minutes after it reported slowing user growth and first quarter losses of £1.7bn on sales of just £115m.

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