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Morning Report: Continuing our exploration of 2017’s tech IPO crop, let’s talk about Snap’s recent declines and how they are rapidly pushing it closer to Twitter-landia.

On July 11, Snap underwriter Morgan Stanley cut its view of the company, lowering its price target in the process. The scale of the downgrade was staggering. For context, :

Shares of the social media company closed 8.95 percent lower at $15.47 a share after the call. A [Morgan Stanley] team lead by analyst Brian Nowak downgraded the stock to equal weight from overweight and slashed their price target to $16 from $28.

As you can see, Morgan Stanley wasn’t prescient to forecast that Snap’s shares would struggle in the market at the time, as it already was. Instead, the company was anti-prescient before by greatly overestimating where Snap’s shares would trade previously. This was correction, not prognostication.

Regardless, the change from $28 to $16 is over 42 percent. That’s steep.

But Snap has continued to dip, trading under the $15 mark today. That fact brings up two quick points that keep buzzing around the back of my head:

1. Snap’s looks increasingly odd. The firm was worth $19.3 billion (post-money), after raising $1.8 billion at a $17.5 billion pre-money valuation. Back then its revenue was in the generating revenue in . Snap, now worth $17.47 billion (so close to its prior pre-money valuation!), puts up revenue numbers north of one hundred million each quarter. Thus we see, again, the gap ‘twixt private and public valuations at play.
2. And will Twitter’s market cap eventually surpass Snap’s? The gap :

That chart tracks the 鈭喡爁rom Twitter’s market cap up compared to Snap’s, so at zero the firms are equally valued. The trend, I posit, isn’t hard to grok.

But now in earnings season are we. So all bets are off regarding when parity could be reached, as both Twitter and Snap both have historical precedent for wild post-earnings trading swings.

For now, what was once unthinkable, that Snap could stumble and Twitter could rise — ! — is slowly working on coming to pass. What an odd year.

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