Snap Inc. (SNAP) shares plummeted 16.50% in Wednesday's pre-market trading session following a disappointing first-quarter earnings report and the company's decision to withhold second-quarter guidance. The social media giant, known for its popular app Snapchat, faced a sharp sell-off as investors reacted to the company's financial performance and outlook uncertainty.

Snap reported a loss of $0.08 per share for Q1, falling short of analysts' expectations of a $0.03 profit. Despite slightly beating revenue estimates with $1.36 billion, representing a 14.1% year-over-year growth, the earnings miss and lack of forward guidance overshadowed the positive aspects of the report. The company cited "macro economic uncertainty" as the reason for not providing Q2 forecasts, raising concerns about potential headwinds in the digital advertising market.

Adding to the negative sentiment, several major financial institutions, including Deutsche Bank, Canaccord Genuity, Raymond James, and Jefferies, cut their price targets for Snap following the earnings release. These downgrades reflect growing skepticism about Snap's near-term growth prospects and its ability to navigate the challenging economic environment. As investors digest the news and reassess their positions, Snap's stock faces significant pressure, with the pre-market plunge indicating a potentially volatile trading day ahead.