Cramer: Snap's Downgrade Is A Preemptive 'Obituary'

Snap Inc SNAP's stock traded below the $17 mark for the first time ever Monday. On Tuesday, it traded below the $16 mark in reaction to a harsh downgrade by analysts at Morgan Stanley.

Snap's downgrade by a firm that helped it go public is not only embarrassing, it can also be seen as an "obituary," at least according to CNBC's Jim Cramer. The analysts are merely doing their job in analyzing Snap's outlook and calling it how they see it: Current expectations aren't living up to prior expectations, and it wasn't their intention for the research report to come out as an "obituary."

Investors also made it clear which side they are on as Snap's stock price is "broken" from the "very devastating downgrade."

Naturally, Cramer agrees with the downgrade and but believes Snap's woes are almost entirely due to Facebook Inc FB's Instagram app. The other concerns cited by the analysts in the downgrade amount to "window dressing."

Facebook's co-founder and CEO Mark Zuckerberg continues his relentless attack against Snap, Cramer continued. He is, in fact, going after them in a way that is "unimaginable" at one of if not Snap's most vulnerable periods as advertisers struggle to justify their ad spend and the company is even giving away Sponsored Lenses for free.

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