Facebook unveiled three new features Tuesday, including Facebook Camera Effects, Facebook Direct and Facebook Stories. The features allow Facebook users to add frames and filters to their photos, share disappearing videos with friends, and save stories that can also be shared — nothing unlike what Snapchat already offers its users.
Snap was trading at $23 Tuesday afternoon, down nearly 3.5 percent, after rising 5 percent on Monday to close near $24. Several Wall Street analysts initiated coverage on the stock Monday, which included a buy rating from Goldman Sachs.
Snap didn’t immediately respond to CNBC’s request for comment.
Shares of Facebook were up 0.6 percent Tuesday at around $141 per share.
Snapchat’s user growth began showing signs of slowing in the fourth quarter of 2016, according to its IPO filing, and some analysts believe Facebook-owned Instagram Stories played a role in the dropoff.
Including Tuesday’s losses, shares of Snap have fallen roughly 6 percent since the company’s IPO earlier this month. The stock closed its first day of trading up 44 percent at $24.48.
Disclosure: CNBC parent NBCUniversal is an investor in Snap.