Snap Inc. shares fell 5.02% as the stock hit a 5-day low amid broader market weakness, with the Nasdaq-100 down 1.11% and the S&P 500 down 0.56%.
The company announced the formation of a wholly owned subsidiary, Specs Inc., focused on developing augmented reality glasses. This strategic move aims to enhance operational focus and align with upcoming product launches, as Snap plans to release its sixth-generation AR glasses later this year. The establishment of Specs Inc. is expected to attract new partnerships and provide capital flexibility in a competitive market.
This development reflects Snap's commitment to the smart eyewear sector, which is anticipated to gain consumer interest. However, the stock's decline indicates that market conditions may be overshadowing the positive news, highlighting the challenges Snap faces in a competitive landscape.
Wall Street analysts forecast SNAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNAP is 9.57 USD with a low forecast of 7.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
Wall Street analysts forecast SNAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNAP is 9.57 USD with a low forecast of 7.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
24 Hold
2 Sell
Hold
Current: 7.670
Low
7.00
Averages
9.57
High
13.00
Current: 7.670
Low
7.00
Averages
9.57
High
13.00
UBS
Neutral
downgrade
$10 -> $9
2026-01-20
Reason
UBS
Price Target
$10 -> $9
AI Analysis
2026-01-20
downgrade
Neutral
Reason
UBS lowered the firm's price target on Snap to $9 from $10 and keeps a Neutral rating on the shares. The Q4 earnings outlook for advertising-driven companies points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December, the analyst tells investors in a research note. Among nine companies, five exceeded prior forecasts, two were in line, and two came in modestly below expectations, UBS says.
Guggenheim
Michael Morris
Neutral
downgrade
$9
2025-12-19
Reason
Guggenheim
Michael Morris
Price Target
$9
2025-12-19
downgrade
Neutral
Reason
Guggenheim analyst Michael Morris lowered the firm's price target on Snap to $8.50 from $9 and keeps a Neutral rating on the shares. Entering 2026, the firm sees headwinds to usage growth and below-peer average core advertising growth tempering investor interest, the analyst says while lowering the firm's first half of 2026 DAU forecast to reflect the view that current challenges persist beyond a single quarter.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SNAP
Unlock Now
Arete
Sell
to
Neutral
upgrade
2025-11-18
Reason
Arete
Price Target
2025-11-18
upgrade
Sell
to
Neutral
Reason
Arete upgraded Snap to Neutral from Sell with an $8.60 price target.
Citi
Neutral
maintain
$10
2025-11-12
Reason
Citi
Price Target
$10
2025-11-12
maintain
Neutral
Reason
Citi raised the firm's price target on Snap to $10 from $8.50 and keeps a Neutral rating on the shares post the Q3 report. The firm highlights Snap's focus on engagement, monetization, and profitable growth.
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
