Investing.com – Shares of Snap Inc (NYSE:SNAP) continued to tumble on Tuesday, after digital marketing firm eMarket said Snap Inc’s Snapchat ad revenue will be $30 million lighter in 2017 due to higher than expected revenue sharing with its advertising partners.
Shares of snap extended losses in afternoon trade, falling more than 3% to $20.39 by 14:49 EDT.
Snapchat’s 2017 advertising revenue is predicted to rise to $770 million in 2017, up 157% from last year, but is below eMarket’s previous forecast of $800 million in September.
A large chuck of Snap’s revenue comes from advertisers seeking to leverage the social media company’s popularity with Millennials.
Snap’s tumble on Tuesday, reflected the negative sentiment in the broader market, as the three main U.S. indexes traded lower, after oil prices slid for a seventh straight session and heaped pressure on U.S. equities ahead of Federal Reserve's interest rate decision on Wednesday.
U.S. crude oil prices hit a three-month low, after the Organization of the Petroleum Exporting Countries’ latest monthly report revealed that Saudi Arabian crude oil production rose to 10.011 million barrels a day, up from 9.748 million in January while the report also forecast a rise in production from non-OPEC members in 2017.
Meanwhile, upbeat US economic data had a muted effect on U.S. equities.
The Labor Department said on Tuesday that its producer price index for final demand increased 0.3 percent last month after rising 0.6 percent in January. Economists had forecast a 0.1 percent rise.
The Dow Jones Industrial Average traded 0.22% lower at 20,834. The S&P 500 shed 0.48% and the Nasdaq Composite lost 0.43% lower at 5,850.