Snap Inc. Reports Q4 Sales Growth but Forecasts Q1 Revenue Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy SNAP?
Source: stocktwits
Snap Inc. shares fell 3.82% as the stock hit a 52-week low amid broader market gains.
Despite reporting a 10% sales growth in Q4 and a significant net income increase, Snap's forecast for Q1 revenue fell short of analyst expectations, indicating competitive pressures from rivals like Meta and TikTok. The company anticipates revenue between $1.50 billion and $1.53 billion, below the average estimate of $1.55 billion. This outlook reflects ongoing challenges in user growth and advertising revenue, despite a 28% increase in active advertisers in Q4, showcasing the effectiveness of its new ad formats.
The implications of Snap's forecast may lead to increased scrutiny from investors, as the company navigates a competitive landscape while trying to maintain user engagement and profitability.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 4.880
Low
7.00
Averages
9.57
High
13.00
Current: 4.880
Low
7.00
Averages
9.57
High
13.00
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.
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- Product Security Warning: PerplexityAI's CEO expressed concerns about the security of its AI browser, Comet, as audits revealed vulnerabilities when handling complex workflows, particularly when users exploit it to complete online courses and exams, raising the risk of misuse.
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