Shares of Snap Inc. (SNAP) tumbled 5.01% in pre-market trading on Monday, following a significant price target cut by Wells Fargo analysts. The social media company's stock faced immediate pressure after the investment bank lowered its target price for Snap from $11 to $9, signaling reduced confidence in the company's near-term prospects.

The downward revision in Wells Fargo's price target comes as a blow to Snap, which has been struggling to maintain investor confidence in recent months. While the specific reasons behind the target cut were not immediately clear, such moves are typically based on a reassessment of a company's financial outlook, competitive position, or broader market conditions affecting the social media and digital advertising sectors.

This price target reduction could potentially trigger a reassessment of Snap's valuation among other analysts and investors. As the market digests this news, it may lead to increased scrutiny of Snap's upcoming financial reports and user growth metrics. The company now faces added pressure to demonstrate its ability to overcome challenges and deliver value to shareholders, as it competes in the highly competitive social media landscape.