Snap Inc's stock experienced a significant drop of 5.08% during intraday trading on Thursday. The sharp decline reflects growing investor concerns over the company's future growth prospects in key markets.

The sell-off appears to be driven by mounting regulatory pressures worldwide, as multiple countries move to implement age-based restrictions on social media access. Australia has already enacted a ban for children under 16, while Britain, France, Denmark, and Malaysia are considering or have approved similar measures. These regulations target major platforms including Snapchat, potentially limiting its user base among younger demographics.

India's chief economic adviser also recently called for age restrictions, describing social media platforms as "predatory," adding to the regulatory uncertainty. With social media companies requiring users to be at least 13 to sign up, these government actions could significantly impact Snap's ability to attract and retain younger users across multiple regions.