Snap Inc (SNAP) shares plummeted more than 6% in pre-market trading on Thursday, following a significant target price cut by RBC Capital Markets. The social media company's stock faced strong downward pressure after the investment bank lowered its price target for Snap from $16 to $12, representing a 25% reduction.

RBC's decision to slash Snap's target price has sent shockwaves through the investor community, raising concerns about the company's growth prospects and financial performance. While the specific reasons behind the downgrade were not immediately disclosed, such substantial revisions are typically based on a reassessment of a company's fundamentals, changing market conditions, or shifts in the competitive landscape. The new target price of $12 signals a more pessimistic outlook on Snap's near-term potential.

The sharp pre-market decline in Snap's stock price indicates that investors are rapidly adjusting their expectations for the company in light of RBC's analysis. As the regular trading session begins, market participants will be closely monitoring Snap's performance to see if the pre-market losses persist or if there's any recovery throughout the day. This significant price target reduction is likely to spark increased scrutiny of Snap in the coming days, as investors and analysts seek to understand the factors driving RBC's more conservative valuation and assess the potential long-term implications for the social media platform.