Morgan Stanley, the firm that helped Snapchat’s parent company go public, has downgraded the stock. CNBC describes the move as “particularly insulting” as well as creating an “awkward appearance.” Shares for the newly public company have fallen dramatically, trading at $16.01 this morning. In another blow, the stock fell below its IPO price of $17 a share yesterday.
Add it all up, and things are not looking good for Evan Spiegel’s company. Since it went public, the stock has consistently underperformed. “SNAP‘s ad product is not evolving/improving as quickly as we expected and Instagram competition is increasing,” writes Morgan Stanley analyst Brian Nowak in his note.