2017.07.1021:16:00UTC+00Snap Shares Slide Below IPO Price

For the first time since its market debut, Snap Inc. shares fell below their IPO price of $17, indicating declining investor confidence in the company's growth potential as it struggles against stronger competition.

The stock slid as low as $16.95 in afternoon trading, before ending 1.1 percent lower at $16.99 on the NYSE. The company launched the hottest U.S. tech listing in March in years.

The social media company received a price target cut from Credit Suisse analysts. Its price range was lowered from $30 percent to $25 percent, but they maintained their “outperform" grade. The analysts said they anticipate the firm's shares to be volatile in the short term as over 700 million shares will be potentially released from their locked-up period later this month.

The Snapchat messaging app is a popular app among the younger generations, but majority on Wall Street has been doubtful of the company's high valuation and slumping user growth.

Snap's shares has fallen 42.4 percent from its record high of $29.44 hit during its second day of trading.