Snap Inc. (NYSE:SNAP) fell more than 6 percent on Tuesday after Morgan Stanley analysts downgraded the social media company, citing concerns over the increasing competition.

Morgan Stanley analyst Brian Nowak downgraded the stock to equal weight from overweight and cut its price target to $16 from $28. Morgan Stanley is one of the underwriters for Snap’s IPO.

Snap’s shares fell as much as 6.47 percent to $15.91. This is the first time it fell below its initial public offering price of $17.

Analysts is worried about Snapchat’s ability to monetize its advertising business as well as the huge competitions from Facebook and Instagram.

"SNAP's ad product is not evolving/improving as quickly as we expected and Instagram competition is increasing," Nowak said in a note to investors. "We have been wrong about SNAP's ability to innovate and improve its ad product this year (improving scalability, targeting, measurability, etc.) and user monetization as it works to move beyond 'experimental' ad budgets into larger branded and direct response ad allocations."

In May, snapchat reported its first earnings report that fell short of analysts’ estimates, sending the stock down more than 20 percent on that day. Although the revenue of Snapchat jumped from $38.8 million to $150 million year-over-year, the company reported a loss of $2.31 a share.