Snap Launches Creator Subscription Feature to Boost Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy SNAP?
Source: Newsfilter
Snap Inc. shares rose 5.40% as the stock crossed above its 5-day SMA, reflecting positive investor sentiment.
The company announced the launch of its 'Creator Subscriptions' feature, allowing creators to earn between $4.99 and $19.99 monthly from engaged fans. This initiative aims to diversify revenue streams amid a slowdown in user growth, with daily active users decreasing by 3 million to 474 million. Snap is entering a competitive market, facing rivals like Patreon and OnlyFans, and plans to test the feature with 15 creators in the U.S. before expanding internationally.
This move is seen as a strategic response to fluctuating advertising revenues, positioning Snap to enhance profitability and adapt to market challenges.
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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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- Expanding User Base: Snapchat's global monthly active users have reached 946 million, nearing the target of one billion, which provides greater advertising revenue potential and strengthens its competitive position in the market.
- Growing Subscription Community: Snap's global subscription community has surpassed 25 million members, indicating the increasing appeal of its Snapchat+ service, which could provide a stable revenue source for the company in the future.
- Positive Market Reaction: The company's shares rose 4% in midday trading, reflecting investor optimism regarding Snap Inc.'s growth prospects, which may attract more attention from investors towards its stock performance.
See More
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- User Growth Milestone: Snap's global monthly active users reached 946 million in Q4 2025, an increase of 51 million or 6% year-over-year, indicating significant progress in user acquisition and retention, thereby enhancing its competitive position in the market.
- Revenue Diversification Strategy: Snap's direct revenue segment exceeded a $1 billion annualized revenue run rate, demonstrating the company's success in launching paid services like Snapchat+, Lens+, Snapchat Platinum, and Memories Storage Plans, aimed at diversifying revenue sources to tackle market challenges.
- Creator Subscriptions Feature: Snap launched alpha testing for Creator Subscriptions on February 23, allowing creators to monetize their loyal fan base, which is expected to further enhance the platform's content ecosystem and user engagement, driving long-term revenue growth.
- Earnings Beat Expectations: Snap reported Q4 2025 revenue of $1.72 billion, a 10% increase that surpassed analyst expectations of $1.70 billion, showcasing success in in-app optimizations and new formats, although future revenue projections are slightly below market expectations.
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- Allegations: Plaintiff's lawyers accuse Meta and competitors like YouTube and TikTok of misleading the public about the safety of their services, knowing their app designs and features harm young users' mental health, while Meta denies these claims, stating that the jury must determine if Instagram was a substantial factor in the plaintiff's issues.
- Industry Implications: This trial is viewed as a 'Big Tobacco' moment for the social media sector, highlighting growing public concern over potential harms, which could lead to stricter regulations and legal liabilities affecting Meta and its peers' operational frameworks.
- Additional Lawsuits: Meta is also involved in a major trial in New Mexico, where the state's attorney general alleges the company failed to protect children and young users from online predators, intensifying public scrutiny over social media safety measures.
See More
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- Allegations: Lawyers for the plaintiff claim that Meta, YouTube, TikTok, and Snap misled the public about the safety of their services, knowing that their app designs and certain features harmed young users' mental health; Meta denies these allegations, asserting that the jury must determine whether Instagram was a substantial factor in the plaintiff's mental health struggles.
- Industry Response: Instagram chief Adam Mosseri testified last week that while problematic social media usage exists, he does not equate it with clinical addiction, a viewpoint that may influence public perceptions of social media use and spark broader discussions about its impacts.
- Future Trials: In addition to the Los Angeles trial, Meta faces another significant trial in New Mexico, where the state attorney general alleges that the company failed to protect children and young users from online predators, indicating increasing legal and public scrutiny on social media companies.
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- Enterprise Sales Team Expansion: The company currently has a five-person enterprise sales team and plans to grow it in the coming months to better serve high-powered professionals such as finance experts and CEOs, thereby improving customer satisfaction and revenue stability.
- 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.
- Continued Free Access: Despite the shift towards enterprise clients, PerplexityAI will maintain free access with rate limits to retain its user base and attract more potential customers, ensuring a degree of user loyalty in a competitive market.
See More
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- Portfolio Update: Nvidia disclosed new stakes worth $2.3 billion in Snap and $1.1 billion in Nokia, while also revealing a $7.9 billion stake in Intel, showcasing its strategic positioning and confidence in the semiconductor market.
- Positive Market Reaction: Nvidia shares rose 1.4% in early premarket trading on Wednesday, reflecting market optimism regarding the new agreement with Meta, while Intel's stock also gained 1% due to Nvidia's investment, indicating investor confidence in the semiconductor sector.
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