Shares of Snap Inc (SNAP) tumbled 5.07% in pre-market trading on Thursday following a significant target price cut by RBC Capital Markets. The social media company's stock faced downward pressure after the investment bank lowered its price target for Snap from $16 to $12, signaling a more pessimistic outlook on the company's near-term prospects.

RBC's decision to reduce Snap's target price by 25% has sparked concerns among investors about the company's growth potential and financial performance. While the specific reasons for the downgrade were not immediately clear, such revisions are typically based on a reassessment of a company's fundamentals, market conditions, or competitive landscape.

The sharp pre-market decline in Snap's stock price suggests that investors are recalibrating their expectations for the company in light of RBC's analysis. As the market opens, traders and analysts will be closely watching Snap's performance to see if the pre-market losses hold or if there's any recovery throughout the trading session. The company may face increased scrutiny in the coming days as investors and analysts alike seek to understand the factors behind RBC's more conservative valuation.