Snap’s in Wall Street’s dog house today after a research report from Morgan Stanley, the lead underwriter of its IPO in March, downgraded the company’s stock to “equal weight” from “outperform.”

The share price is down more than 6.5% in mid-day trading after analyst Brian Nowak questioned Snap’s slower than expected development of ad products while “Instagram competition is increasing.”

He cut his 2017 revenue forecast by 6.9%, to $897 million.

That dropped the stock to about $15.90 a share.  It closed yesterday at $16.99, the first time it ended below the $17 IPO price.

CNBC’s Jim Cramer called the report an “obituary” adding that “if Facebook wants to smash Snap, it can do it…This is becoming one the great busts of 2017.”

Others also have soured on Snap. Nomura Instinet’s Anthony DiClemente said this morning that downloads of the company’s Snapchat app “have shown weakness throughout 2Q, declining by 22%, substantially slowing from the 6% growth in 1Q. As Snap’s growth has faltered, both YouTube and Instagram have now built a meaningful lead from an essential tie just three quarters ago.”

As often happens when a stock falls dramatically, several law firms filed class action lawsuits charging that Snap’s executives and financial reports misled investors by exaggerating its growth opportunities.