Snap Inc (SNAP) shares plummeted 5.01% during Wednesday's intraday trading session following the company's announcement of new content restrictions for younger users on its Snapchat platform.

The social media company revealed that content from Snapchatters aged 13-15 will no longer be distributed to non-friend audiences on Spotlight, Snapchat's content discovery feature. Additionally, Snapchat will implement a "friends-only" content sharing experience for users in this age group, significantly limiting the reach of their posts.

These policy changes represent a major shift in how younger users can share content on the platform and may raise concerns among investors about potential impacts on user engagement, content virality, and advertising revenue opportunities.