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Actionable news in SNAP: Snap Inc,

Can Snapchat snap back?

Is Facebook turning into Snapchat?

Snapchat is probably not the next Facebook.

The company generated enormous hype when it went public in March. But it continues to bleed red ink. User growth is slowing, an alarming sign for a social media platform that's relatively young. And Facebook itself keeps introducing me-too products.

Stock in Snapchat's parent company, Snap Inc. (SNAP), has fallen below the initial public offering price of $17. It dipped 8% more on Tuesday, to about $15.65, after Morgan Stanley downgraded the stock.

That's a worrisome sign: Morgan Stanley was an underwriter on the IPO. Companies can usually at least count on their bankers for support.

Snapchat's biggest problem may be how easy it is for Facebook to copy its most popular features and roll them out on the core Facebook platform, as well as other Facebook properties, like Instagram, WhatsApp and Messenger.

By contrast, when Facebook went public in 2012, its competitors were a fading MySpace and the all but forgotten Friendster. And Facebook was already making money.

The biggest worry investors had about Facebook was a lack of an...