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Snap shares seesaw after analyst says Facebook chases Snapchat's innovation

A stuffed ghost rests on a trader's screen above the floor of the New York Stock Exchange after Snap listed its IPO in New York, March 2, 2017.
Lucas Jackson | Reuters
A stuffed ghost rests on a trader's screen above the floor of the New York Stock Exchange after Snap listed its IPO in New York, March 2, 2017.

Snap shares seesawed Wednesday after a Jefferies analyst said Facebook, experiencing a slump in engagement, will chase Snapchat's innovation.

The parent company behind Snapchat was down about 1 percent intraday Wednesday, a day after Facebook unveiled new features similar to Snapchat. The stock later closed the day up 1.5 percent.

On Tuesday, investment firm Jefferies reiterated its "buy" rating on Snap stock, saying the company continues to beat Facebook in newness.

"We see the roll out of clone features in Instagram and now core Facebook as a sign that Snap is creating the best and most engaging tool sets," said Brian Fitzgerald, equity analyst at Jefferies.

Fitzgerald said Snap will continue to innovate and sees the company's sunglasses — Snapchat Spectacles — as an example of its willingness to think outside the box to drive the user experience.

Snap's stock is up about half a percent over the past week.

Snap 5-day chart

Source: FactSet.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.