Snap Inc., the company behind the popular teen video sharing app Snapchat, debuted on Wall Street earlier this month. But, the company’s shares have just hit a record low.
Snapchat is expected to grow in 2017 rapidly but by not as much as the company originally expected.
eMarketer released a report on Tuesday and cut the company’s projected revenue by $30 billion to $770 million from an estimated $800 million. eMarketer argued that the cut was due to “higher-than-estimated” revenue sharing with publishing partners located in Snapchat’s Discover section. Snpachat has partnered with media companies including BuzzFeed and Vice to produce original content for the app in exchange for ad revenue placed with their content. In the initial public offering paperwork, Snap revealed that the company would pay the publishers $58 million in 2016, which was an increase of $48 million in 2015.
eMarketer forecasts Snap would still earn a 158% growth in ad revenue in 2017. Also, Snap is predicted to account for 1.3% of the total mobile advertising market in 2017 and is expected to more than double in two years. Meanwhile, eMarketer points out Facebook is projected to control 25% of the entire mobile advertising industry and Google will control 32% of the market share.
That said, it is important to note that the company’s stock has quickly fallen since the company went public on March 2nd. Snap inc’s stock price dropped from $24.48 to an all-time low of $20.50 on Tuesday.