Snap Inc.’s CEO Evan Spiegel announced on Thursday that he nor the company’s other co-founder Bobby Murphy, have no intentions of selling shares of the stock this year.
Snap Inc. is the parent company of Snapchat which both men are responsible for co-finding.
“Given the amount of speculation around the lock-up expiration, I feel it is important to note that Bobby and I will not sell any of our shares this year,” Spiegel said on a call with analysts.
“We believe deeply in the long-term success of Snap.”
Shares of Snap sank 17% in extended trading after the company’s latest quarterly results didn’t meet Wall Street’s views.
The company’s daily active users as well as its revenue were below what analysts had been expecting. For the quarter, daily active users hit 173 million but this was short of the 175.2 million expected. Revenue at $1.05 per user was also below the $1.07 expected. It was however an increase from the 50 cents reported a year earlier.
James Gellert, CEO of RapidRatings, a company that analyzes the financial health of companies, remarked, “That in and of itself doesn’t create support for Snap, but it should reduce the people who are inclined to flee based on the performance.”
Shares of Snap debuted at $24 back in March.
Disclaimer: We have no position in Snap Inc. (NYSE: SNAP) and have not been compensated for this article.