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 closed the day down around $22 per share, 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 closed Tuesday up 1 percent, nearing $142.
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.
"All of this is obviously bad news for Snap," MCAM-International, which maintains an archive of documents related to patents, trademarks, copyrights and other intangible assets from more than 100 countries, told CNBC in a statement on Tuesday.
The group added: "We don't see a real path for Snap to [successfully] sue Facebook for patent infringement. Most of the technology that [Snapchat] relies on is fairly standard at this point and easy to work around. ... we don't see a lot of hope for an aggressive litigation strategy."
Including Tuesday's losses, shares of Snap have fallen roughly 7 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.
— CNBC's George Manessis contributed to this report.