Snap Inc's stock plummeted 8.04% during intraday trading on Wednesday, reflecting significant selling pressure on the social media company.

The sharp decline follows market concerns over the company's recent announcement of stricter privacy protections for teenage users aged 13 to 15. Under the new policy, content posted by users in this age group defaults to a friends-only sharing experience and will no longer be distributed to non-friend audiences through the Spotlight feature.

Analysts and investors worry these restrictions may limit content reach and user engagement on the platform, potentially pressuring advertising revenue and other core business metrics. The broader Interactive Media & Services sector also traded lower during the session, indicating sector-wide pressure.