AdvertisingSnapchat parent Snap Inc. is expected to make $127.5 million less ad revenue this year than previously forecasted, eMarketer said on Monday.
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The adjustment marks the second time eMarketer has slashed its revenue expectations for Snap this year; the firm's original 2017 US ad forecast of $800 million was lowered by $30 million in March due to higher than expected revenue sharing with publishing partners.
Now eMarketer expects Snap to make $774.1 million in worldwide ad revenue for 2017, down from its $900 million estimate earlier this year.
The report echoes some Wall Street analysts who have recently lowered their price targets on Snap's stock. J.P. Morgan's Doug Anmuth cut his price target by $2 last week after observing the company's rollout of self-serve ads.
eMarketer still expects strong growth from Snap over the next couple of years, with 2018 US ad revenue projected to overtake Twitter at $1.18 billion.
But Snap is still feeling the pressure from Facebook's Instagram, which eMarketer expects to reach $3 billion in US ad revenue this year and $6.84 billion in 2019.
The firm notes that although Snap has been aggressive in building out its two-year-old ad business, experimental ad products like sponsored 3D World Lenses have yet to convince marketers to fully jump on board.
(Disclosure: eMarketer and Business Insider are both owned by Axel Springer.)
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