When Will Marketers Embrace Snap?

Another disconcerting news about the company was carried by Statista, quoting a report by Social Media Examiner, which suggested that advertiser adoption of Snapchat has been anemic.

Advertisers Yet To Lap Up In A Big Way

The report shows Snap ranks way below its other social media peers in garnering the interest of advertisers. Merely 7 percent of the advertisers seem to have used Snapchat in the first quarter of 2017.

This is a shoddy showing when compared to 94 percent for Facebook Inc (NASDAQ:FB), 68 percent for Twitter Inc (NYSE:TWTR), 56 percent for Microsoft Corporation (NASDAQ:MSFT)'s LinkedIn, 54 percent for Facebook's Instagram, 45 percent for Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG)'s YouTube and 30 percent for Pinterest.

Meanwhile, the Statista article said despite the clout Snapchat has with the millennials, there has been abounding speculation about whether the fundamentals justify the $20 billion valuation commanded by its parent Snap. Additionally, the competitive threat posed by Facebook was also highlighted.

Threatening A Break Below IPO Pricing

After its much-hyped IPO earlier this year, when it offered 200 million shares of its common stock at $17 apiece, Snap debuted on the Nasdaq on March 2.

The stock opened at $24, a 41-percent premium to the offer price, and touched a high of $26.05 and a low of $23.50 intraday before closing at $24.48, a 44-percent gain on the debut.

The $17 level has served as support for the stock even amid all these pessimism, although one cannot be sure how much of a support this level can offer unless Snapchat doubles up its efforts to improve its fundamentals.

At the time of writing, shares of Snap were up 3.41 percent at $17.58.