Market Insider

Snap shares sink after Instagram presses assault on Snapchat with disappearing messages

CEO and co-founder of Snapchat Evan Spiegel
Getty Images

Snap shares sank Tuesday after Facebook-owned Instagram rolled out new features, including one that lets users send disappearing photos and videos.

Shares of parent company Snapchat closed down over 1 percent Tuesday, at $20.70 a share. The stock was down more than 6 percent in the past month.

On Tuesday, Instagram announced an update to improve the app's Direct messaging feature. Text conversations will now appear in the same thread as disappearing videos and photos. Self-destructing messages are a hallmark of Snap founder Evan Spiegel's application. Senders will also be notified if the viewer takes a screenshot, another Snapchat-like feature.

(Source: Instagram)

The update came as Facebook has been trying to steal Snapchat's thunder.

Earlier this year, Facebook unveiled clear ripoffs of Snapchat Filters, Snapchat Snaps and Snapchat Stories. The social media giant, which has some 1.86 billion users, has denied it took its camera ideas from Snapchat.

Snap 5-day chart

(Source: FactSet)

Disclsoure: CNBC parent NBCUniversal is an investor in Snap.