- The bearish stance may be a reaction to Snapchat's recent redesign, which has been criticized by analysts and celebrities alike.
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Young investors are selling Snap ahead of earnings (SNAP)
Investors are selling off Snapchat shares on the Robinhood app ahead of earnings, likely a result of the negative feelings around the Snapchat redesign.
Snapchat's redesign, unpopular among analysts and celebrities, may be causing investors on the Robinhood trading app to take a more cautious stance ahead of Tuesday's earnings.
Investors on Robinhood are selling shares 14% more than they're buying ahead of the company's first-quarter results, which are set to be released after the closing bell.
Older investors tended to take a more pessimistic stance in comparison to younger investors on the trading app. While investors over the age of 30 are selling shares 19% more than they're buying, those under the age of 30 are buying shares 5% more than they're selling, Robinhood's Lavinia Chirico told Business Insider in an email.
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"SNAP recently announced a Snapchat redesign which caused the stock to drop, and may have influenced negative investor sentiment," Chirico wrote.
The app's redesign has prompted criticism from influencer Kylie Jenner and other celebrities. Analysts at Citi and Raymond James also showed disapproval, downgrading the company, citing a jump in negative reviews after the redesign was rolled out.
Still Snap CEO Evan Spiegel has doubled down on the company's decision, saying he prefers the new version and that users will also come to like it with enough time. The company has, however, said it is looking into rolling back parts of the redesign.
Wall Street is expecting the camera company to lose an adjusted $0.16 a share on revenue of $244.93 million.
Snapchat is down 4% this year.
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