Shares of Snap Inc. (SNAP) are slipping after Facebook (FB) announced similar features to Snapchat. This comes only a day after several Wall Street analysts initiated coverage of Snap with buy-equivalent ratings, changing the bearish tone around the stock since its IPO earlier this month.

FACEBOOK EPHEMERAL STORIES: Facebook's Product Manager Connor Hayes has announced in a blog post that the company is starting to roll out a new camera with effects and two additional ways to share the photos and videos that users take. Additionally, in the main Facebook app the company is introducing "Facebook Stories," which let users share multiple photos and videos as part of a visual collection atop News Feed. "Your friends can view photos or videos your story for 24 hours, and stories won't appear on your Timeline or in News Feed unless you post them there, too," Hayes stated. Commenting on the announcement, Casey Newton of The Verge said that today's rollout of ephemeral stories and messaging in Facebook's mobile apps is an "all-out assault on Snapchat."

TRY SNAP PRODUCTS ON FACEBOOK: Last Wednesday, Needham analyst Laura Martin had warned investors that Facebook was essentially using Snap as "an R&D facility" and duplicating the latter's most successful products. This could shave growth off of Snapchat's parent and reallocate it to Facebook, because brands are already set up to advertise on Facebook, while setting up to work Snap takes time and work, said the analyst, who pointed out that brands may try the equivalents of Snap's products on Facebook first and if they like them give the former money to reach its younger audience.

SNAP INITIATED WITH SEVERAL BUYS: Yesterday, several Wall Street analysts started coverage of Snap with buy-equivalent ratings, following what has been mostly bearish calls on Snapchat's parent since its IPO earlier this month. Among those bullish on the stock was William Blair analyst Ralph Schackart, who initiated Snap with an Outperform rating saying that many brands see it as a platform they need to be advertising on given the importance of reaching this younger demographic. However, the analyst acknowledged that the company operates in a "highly competitive market" with well-established players and competitors with larger user bases and more resources. Facebook, in particular, has demonstrated a willingness to roll out features on Facebook, Instagram, and Messenger that are similar to features Snap offers, he contended. Oppenheimer analyst Jason Helfstein started coverage of Snap with a Perform rating yesterday, on valuation. He noted that competitors will copy Snapchat's lenses, filters and video formats, but the network's unique social graph is "equally important to the user experience." Further, platforms already tainted by "over-friending" will always be "imperfect imitators," he argued. Today, Deutsche Bank joined its bullish peers and initiated Snap with a Buy rating and a $30 price target. Analyst Lloyd Walmsley told investors in a research note of his own that Snapchat's parent offers the "next great mobile ad business amidst a sea of investor skepticism." Additionally, he said that his firm's consumer survey suggests several key investor concerns are overblown.

PRICE ACTION: In morning trading, shares of Snap have dropped nearly 6% to $22.45, while Facebook's stock is up fractionally at $140.71 per share.