Snap Is a $5 Stock, and Its Co-Founder Is Selling
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Bobby Murphy, co-founder and chief technology officer of Snap (NYSE:SNAP | SNAP Price Prediction), sold 2,000,000 Class A shares on Friday, November 6, 2026, at a weighted average price of $4.9915. He sold 2,000,000 more on Monday, November 9, at $5.0244.
The two sessions raised $20.03 million, per a Form 4 the SEC accepted at 9:00 p.m. ET on November 10. He also gave 1,195,937 shares to charity on November 9.
Every sale ran under a Rule 10b5-1 plan, a prearranged schedule that removes the insider from picking dates. He adopted it on November 11, 2025, and amended it on February 11, 2026.
Snap fell 14.02% on November 5 after third-quarter results and closed at $4.96 on November 6. It finished Wednesday, November 11, at $5.34 on 35.2 million shares, above both of Murphy’s average sale prices.
With shares down 33.83% year to date, a scheduled founder sale likely adds little to what the earnings report already showed.
After the transactions, he reports 33,390,514 Class A shares held directly and 9,963,581 through trusts and entities, for 43,354,095 in total.
The filing covers Class A stock only. His main stake and voting control sit in other share classes, so the sale says nothing about his control of the company.
A Selling Calendar That Ignores Price
In 2026, he sold 2,000,000 shares in early February at $5.31, 4,000,000 in mid-May at $5.36, 343,945 in late May, and 4,000,000 in early August at $5.40.
Including November, that totals roughly 14.3 million shares and about $75.7 million. In 2025, he sold 1,000,000 shares a quarter at prices from $7.80 to $9.04.
He sold larger blocks as the price fell, so the plan drives the trades.
Scheduled sales carry less signal than discretionary open-market sales for that reason. They still add supply while Snap finishes its buyback in the fourth quarter of 2026.
Profits Rose While North American Users Fell
Third-quarter revenue rose 14% to $1.722 billion, slightly missing consensus expectations near $1.73 billion. Net income was $56 million against a $104 million loss a year earlier, and adjusted EBITDA, a cash-profit measure, rose 110% to $383 million.
Free cash flow reached $164 million. Daily active users grew 4% to 495 million, missing expectations near 499 million.
In North America, daily users fell 6% to 92 million.
Can Cash Flow Rerate a Five-Dollar Stock?
At about $7.89 billion in market value, Snap trades at 18 times free cash flow. The stock is down 39.04% over one year, within a 52-week range of $3.81 to $9.13.
Its 2026 closing low was $3.93 on March 27. Fourth-quarter revenue guidance of about $1.95 billion to $1.99 billion roughly matches consensus, so guidance offers no upside to estimates.
What Snap Must Show in Its Fourth-Quarter Report
Murphy’s sales follow a calendar set in 2025, and the company behind them now makes a profit and free cash flow at a price far below its $8.07 close for 2025.
That case depends on North America, where losing high-value users caps ad growth. Snap has not announced its fourth-quarter report date. Revenue at the $1.99 billion top of guidance and North American daily users at or above 92 million would support that case, while another decline in North America would weaken it.
Keep an eye on Murphy’s next Form 4. A routine plan sale would carry little information, but an amended or ended plan would be a significant change.
Contact [email protected] for any questions or corrections.
Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
