New York — It only took six months and a basket of disguises for Wall Street to love Snap again. Snap has seen a dramatic recovery over the past several months, with shares more than tripling off a record low in December to trade at their highest level in more than a year.

While there have been a number of tailwinds supporting the social-media company, one key ingredient behind the turnaround is this: it now allows users to “swap faces” with others in photographs, with “lenses” or filters that can, for example, make men look like women or babies...

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