Up after eMarketer report on Facebook teen use

Lucas Jackson | Reuters

Snap cofounders Evan Spiegel (C) and Bobby Murphy ring the opening bell of the New York Stock Exchange (NYSE) with NYSE Group President Thomas Farley shortly before the company’s IPO in New York, U.S., March 2, 2017.

Wall Street may finally be warming a bit to Snap.

On Tuesday, the stock price rose more than 6 percent — if Snap holds those gains, it will have ended in the green for five of the past six sessions.

The jump came amid a forecast that fewer teens would use Facebook this year, opting for Snapchat and Instagram (which is owned by Facebook) instead. Data from eMarketer, released this week, project 14.5 million consumers ages 12 to 17 will use Facebook this year, a 3.4 percent year-over-year decline — which would be a first for Facebook.

The data also suggest that this year Snapchat could overtake Instagram and Facebook itself in terms of total users in the coveted 12 to 24 age group.

Still, trading volume was light and choppy: About 27 million shares of Snap changed hands mid-afternoon Tuesday, below the 30-day average of about 33.5 million.

The new report comes amid the end of Snap’s so-called lockup period at the end of August. Although insiders are now allowed to sell their shares, many have opted to stay long the company, according to SEC filings and comments from executives.

History indicates that the end of August should lift pressure from Snap: LinkedIn, Twitter and Facebook all bottomed within a week of their lockup expiration, according to MKM derivatives strategist Jim Strugger.

The stock had a nasty selling streak for much of the summer, and shares are still down more than 28 percent over the past three months as two disappointing quarterly reports weighed on shares.

— CNBC’s Thomas Franck contributed to this report.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.