Snap Inc.

Snap’s stock dropped about 7.1% to $5.50 in morning trading after a rally of nearly 26% since late July faded and investors took profits. Q2 results beat expectations with roughly $1.6bn in revenue (+19%), a narrower loss per share and 493 million daily active users, but the core digital advertising business grew only modestly while subscriptions accounted for the bulk of growth. Additional selling pressure came from a 9th U.S. Circuit Court of Appeals decision that narrows Section 230 immunity and could enable thousands of lawsuits, as well as recent insider sales by executives. Analysts remain mostly cautious (majority price targets $5–$7) and see the stock back near the middle of its 52-week range of $3.81 to $9.28. » More on de.investing.com

Snap stock dropped about 7–8% after Pennsylvania's attorney general sued the company alleging Snapchat is designed for compulsive use by minors and creates risks from disappearing messages. The selloff was Snap-specific while Meta agreed to a $16.7 billion settlement resolving a 29-state teen-addiction case, a charge Meta can absorb but would be proportionally heavier for smaller Snap. Alphabet remains a co-defendant in remaining teen-safety trials, and investors may trim Snap exposure until the legal calendar clears. » More on finance.yahoo.com

The 9th U.S. Circuit Court of Appeals stripped Snap of Section 230 protection, allowing more than 3,000 consolidated lawsuits alleging the app was designed to maximize youth engagement to proceed. The ruling sent Snap shares down after an overnight plunge and pressured peers including Meta, Reddit and Pinterest amid an industry-wide liability overhang. Snap’s strong Q2 results — $1.6 billion revenue and $250 million adjusted EBITDA — are now overshadowed by unquantifiable litigation risk and increased regulatory scrutiny. » More on finance.yahoo.com