Snap short interest, or bets that shares will decline, has increased by more than 65 percent in the latest two-week reporting period ended May 31, Sanderson said.
Similarly, short interest increased in Facebook, Twitter and LinkedIn in the two weeks ahead of their lockup expirations, according to the report:
Facebook — 43 percent increase in short interest.
LinkedIn — 29 percent increase in short interest.
Twitter — 7 percent increase in short interest, following rise of 112 percent four months ahead of the lockup expiration.
That said, declines around the lockup expiration could mark a turning point for Snap.
Facebook and Twitter shares began climbing the day after their lockup expirations, while LinkedIn reached a low the week after, according to Sanderson.
Previous MKM analysis of Snap showed that big social media stocks like Facebook and Twitter fell an average of 14 percent one day after their first public earnings report.
That report proved accurate as Snap shares plunged 21 percent on May 11, after the firm reported its first post-IPO earnings. Snap posted first-quarter net losses of $2.2 billion, due primarily to $2 billion spent on stock-based compensation expenses after its March 2 initial public offering. Quarterly revenue of $150 million missed expectations by $8 million.
— CNBC’s Anita Balakrishnan contributed to this report.