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 FB, 68 percent for Twitter Inc TWTR, 56 percent for Microsoft Corporation MSFT's LinkedIn, 54 percent for Facebook's Instagram, 45 percent for Alphabet Inc GOOGL 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.