Snap is spiraling after Morgan Stanley slashes its price target (SNAP)

Snap

Shares of Snap are hitting new lows Tuesday morning, after another bank — this time Morgan Stanley — cut its price target on the stock.

Snap's fallen to $16.26 in early trading, below its $17 IPO price and a new low.

The losses come as the drumbeat of pessimism from Wall Street grows louder. Several banks, including some of the deal's underwriters of the IPO have cut their price targets on the stock.

Morgan Stanley lowered its price target on Tuesday from $28 to $16, according to Bloomberg. Morgan Stanley was an underwriter of Snap's IPO. JPMorgan, another of Snap's underwriters, has been bearish on the stock since shortly after the company became public.

The cut comes a day after Credit Suisse recently lowered its price target from $30 to $25.

The slate of downgrades and downward stock price trend comes even as Snap is opening new advertising channels and releasing new features for users. Many of the banks have pointed to what they expect to be a disappointing second quarter earnings report, which is set to be released next month.