Shares of Snap Inc. continued their fall in trading Tuesday to close down about 10 percent.
Trading volume was down by more than half from its average. The company’s stock closed Tuesday at $21.44 for a recent market capitalization of $24.8 billion.
The Dow, Nasdaq and S&P 500 all closed down Tuesday.
Snap’s initial public offering priced its shares last Wednesday at $17, with the company beginning trading on Thursday when its stock popped to end the day up 44 percent; they continued their climb Friday. Monday marked the first decline in the stock price when shares closed down 12 percent for the day.
The company that aims to revolutionize the camera generates almost all of its revenue from advertising, according to Snap’s prospectus. Revenue for the 2016 calendar year totaled $404.5 million, up from $58.7 million in 2015. Still, Snap’s net loss in 2016 totaled $514.6 million, widened from $372.9 million in the year-ago period.
Instagram, with some 600 million users, sought to play catch-up to Snapchat’s growth with its own host of app enhancements last year, some of them similar to its competitor. Among those was a feed rank to bring the most relevant content to the top of a user’s feed in hopes of increasing engagement. There was also Instagram Stories and ephemeral messaging. The photo-sharing site had seen some of its users turned off by the overly edited and glossy posts to Instagram, along with the migration of many advertisers to the app, all of which helped chip away at the app’s social currency in the minds of some. Adding a video component to capture more candid moments now allows Instagram to essentially have two channels whereby people can post content, one for those perfect shots and another for the perhaps more mundane moments captured by quick videos.