Tech workers used to bank on riches from stock options. For Snap employees, it’s no certainty – California News

Tech workers used to bank on riches from stock options. For Snap employees, it’s no certainty – California News

The wave of house buying, start-up investing and increased extravagance expected from employees of Snap Inc. may be delayed.

During most of July, shares of Los Angeles’ biggest tech company not only fetched less than their initial offering price of $17, but also were cheaper than the $15.36 investors paid for them in the company’s final private financing.

The price slide has dampened employees’ desire to sell shares that they earned as compensation, according to wealth managers and other advisors.

They expect confidence among employees that Snap is worth at least slightly more than current prices to prevail over anxiety in the coming weeks. That’s brought down the chance of an imminent surge of cash into Los Angeles when employee-shareholders become free to sell around $4 billion worth of holdings for the first time Aug. 14.

The amount workers sell might be enough to fund grand family vacations abroad, but not home purchases or risky bets on starting their own tech ventures. Westside real estate agents said that they haven’t seen a big uptick in demand from Snap employees.

“There’s not a line of people looking to utilize this window to sell,” said Jordan Kahn, chief investment officer for Los Angeles firm HCR Wealth Advisors. “There are a lot of people who think at $13 and change, below the offering price, that’s not the best time to sell.”

A preview of what to expect later this month came Monday as an estimated 400 million shares held by early Snap investors became newly tradable, according to analysts. The amount of shares exchanging hands increased threefold Monday compared with the average daily trading over the last 30 days, but it was far…

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