Estimates for Snap's ad revenue have been cut, and its stock is diving

Reuters

Snap cofounders Evan Spiegel (center) and Bobby Murphy (right) at during the company's initial public offering on March 2.

Snapchat maker Snap Inc. is still expected to exponentially grow its ad revenue in 2017, but not quite as much as originally expected.

A new report from eMarketer on Tuesday slashed Snap's ad revenue projections from $800 million to $770 million, a $30 million decrease. The reason for the cut, according to eMarketer, is due to "higher-than-estimated" revenue sharing with publishing partners in Snapchat's Discover section.

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Snap's stock has continued to fall since its IPO debut at $24.48 on March 2, with shares hitting their post-debut low at around $20.62 on Tuesday.

The company's publishing partners, which include the likes of BuzzFeed and Vice, produce original content for Snapchat every day in exchange for sharing revenue from ads placed between their content. In its recent IPO paperwork, Snap disclosed that it paid these publishers $58 million in 2016, up from $10 million in 2015.

While eMarketer's predictions would still mean a 158% increase in ad revenue for Snap, the research firm noted that "Snapchat's ad business, which is made up entirely of mobile display, is still small."

Snap is predicted to account for 1.3% of the US mobile ad market in 2017, and grow to 2.7% by 2019. By comparison, eMarketer expects Facebook to control 25% of the US mobile ad market this year, while Google is expected to wield 32%.

Get the latest Snap stock price here.