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.
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.
Disclsoure: CNBC parent NBCUniversal is an investor in Snap.