Snapchat is still sliding

Snap Inc. shares were lower in premarket activity on Tuesday after falling below the debut price of $24 per share.

Snapchat's parent company fell 12% and closed at $23.77 on Monday as none of the analysts who initiated coverage of the stock were bullish. Out of eight, six rated "sell" and two rated "hold." Some analysts who are part of firms that worked on the initial public offering will not immediately be able to rate the stock.

The stock popped 44% on its first day of trading last Thursday after raising $3.4 billion in the IPO - the largest for a social network since Twitter. Its market value rose to $28.3 billion, surpassing companies like Macy's and American Airlines.

Analysts who are bearish on the stock argue that this valuation is too high for a company that has not yet turned a profit and is competing for ad spending with peers like Facebook.

Additionally, Snap was the first US company to list shares with non-voting rights. For this reason, a group of investors has approached stock index providers including S&P Dow Jones Indices, to prevent Snap from being part of their benchmarks, Reuters reported.

Short selling - used by traders to bet and profit on a stock's decline - may further pressure Snap shares.

Get the latest Snap stock price here.