Shares of Snap Inc. (SNAP) - Get Report fell 9% Tuesday, making new 52-week lows. As investors worried on Monday about whether Snap stock would hold its IPO price of $17, shares have found themselves down even further Tuesday, now below $16.

The culprit could be the "very devastating" downgrade from Morgan Stanley. Although the analysts only assigned a price target of $16 and lowered their rating to equal-weight, the explanations packed a punch, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, noted on CNBC's "Mad Dash" segment.

Ad products are trailing the analyst's expectations and competition is increasing. Advertisers do not appear to be generating a high-enough return on investment with the Snap platform, while Facebook's (FB) - Get Report Instagram platform appears to be doing betting.

"The ROI may not be there for advertisers. That's very damning and it's what started the long decline of Twitter," Cramer explained.

Facebook is so intense, as CEO Mark Zuckerberg looks to squash any and all of its competition. This led Cramer to say he felt bad for Snap on Monday and he reiterated that sentiment again on Tuesday.

Additionally on Monday, Cramer highlighted the enormous stock lockup expiration set to take place throughout the summer, which could also weigh on Snap stock.

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At the time of publication, Jim Cramer's Action Alerts PLUS had a long position in Facebook.