Snap (SNAP) stock fell to a record low Tuesday, the fourth straight trading day of declines and approaching its IPO price of 17.
Snap stock ended the regular session down 2.4% to 20.58 on the stock market today. The stock hit a low of 20.32 earlier.
Snap held its initial public offering on March 1, selling 200 million shares at 17 each and raising $3.4 billion. It was the biggest IPO since Alibaba Group (BABA) in September 2014. Snap had a strong trading debut, with the stock jumping 44% on its first day of trading, and hit a record high of 29.44 the following day.
Snap is the owner of Snapchat, a mobile messaging platform that competes mainly against the Instagram program of Facebook (FB), both being photo- and video-sharing applications with special features.
On Tuesday, research firm eMarketer issued a report on the digital ad market and said it expects Snap ad revenue will rise 158% to $770 million in 2017. But that’s $30 million less than eMarketer previously projected, lowered due to higher-than-estimated revenue sharing with partners.
Digital ad spending in the U.S. will reach $83 billion this year, up 16% year over year, according to eMarketer’s latest forecast. It expects Google-operator Alphabet (GOOGL) and Facebook to increase their grip on the digital ad market.
EMarketer said Alphabet should account for 40.7% of U.S. digital ad revenue in 2017, more than double Facebook’s share. Facebook, however, soars in the display ad field, while Alphabet continues to dominate search. Google’s share of the search market is projected to to grow 16% to $28.55 billion this year. The search giant will claim roughly 78% of total U.S. search ad revenue this year, eMarketer estimates.
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As Google dominates search, Facebook rules display. The social network’s U.S. display business will jump 32% to $16.33 billion, capturing 39% of the U.S. display market and taking share away from Alphabet, Yahoo (YHOO) and Twitter (TWTR).
Also benefiting Facebook is Instagram, which will make up 20% of Facebook’s U.S. mobile revenue this year, up from 15% last year, said eMarketer. Facebook has been adding Snapchat-like functionality to its Instagram photo- and video-sharing service and WhatsApp messaging app.
Facebook shares fell 0.3% to 139.20 intraday. Alphabet rose 0.3% to 866.83, approaching a 867.10 buy point briefly surpassed on Monday.