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Shares of Snap Inc. (SNAP - Free Report) dipped more than 5% to a new all-time low of $13.10 on Monday, the first trading period following the expiration of the struggling social media stock’s first post-IPO lockup.

However, shares quickly rebounded nearly as high as Friday’s close and were down just over 1% in late morning trading, signaling that today may not be as brutal for Snap as some investors expected.

The lockup technically expired on Saturday, meaning that a wave of early investors, employees, and insiders are finally eligible to sell shares this week. While we don’t know the exact number of new shares available, JPMorgan estimated that about 400 million shares would be freed up after this lockup phase.

Of course, just because a bunch of shareholders can now sell their stock doesn’t necessarily mean that they will. However, a simple concern about supply and demand—especially considering the new availability could drive down borrowing fees for short sellers—has caused investors to approach this expiration with caution.

This first lockup expiration won’t be the only test for Snap shares, as the company is set for another wave of shares to become available on August 14. Heading into Monday, Snap had slumped more than 22% over the past four weeks.

According to sources cited by CNBC, Snap held employee seminars and enlisted Stanford professors for wealth management classes ahead of its IPO earlier this year. Consistently slumping shares have been a major concern for Snap, so much so that CEO Evan Spiegel has reportedly been forced to instruct his employees not to focus on the company’s stock price.

Instead, Spiegel wants his workers to focus on making great products. Recently, we learned that Snap partnered with NBC News to produce a twice-daily headline news show, called “Stay Tuned,” for the Snapchat app.

The show is supported by sponsorships and advertising, and NBC will reportedly share a portion of its ads revenue with Snap. Comcast (CMCSA - Free Report) -owned NBCUniversal invested $500 million in Snap during the company’s IPO.

However, Snap’s advertising model is still relatively unproven, and the company will need to prove that it can continue to grow its user base and compete with likes of Facebook (FB - Free Report) and Twitter (TWTR - Free Report) . All-time lows have become a frequent occurrence for the company’s stock, so it’s been obvious that investors are not optimistic about Snap’s chances right now.

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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