Snap Inc's stock plummeted 5.02% during intraday trading on Thursday, reflecting significant investor concern over regulatory developments affecting the social media sector.

The sharp decline followed news that Canada has proposed banning children under 16 from using social media platforms, with potential exemptions only if companies like Snapchat meet specific safety requirements. This regulatory proposal threatens to directly impact Snapchat's user base, particularly its younger demographic, raising concerns about potential future revenue declines and increased compliance costs.