Snap's $400M AI Partnership Could Drive Future Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 Jan 26
Source: SeekingAlpha
Snap Inc. shares rose by 5.02% as the stock crossed above the 5-day SMA, indicating a potential reversal in its recent downtrend.
The recent announcement of a $400 million AI partnership with Perplexity is expected to enhance Snap's revenue streams by 2026, positioning the company for growth despite its previous seven-day losing streak. This partnership could catalyze margin expansion and improve investor sentiment, as analysts remain cautiously optimistic with a mix of ratings.
The implications of this partnership are significant, as it may help Snap recover from its recent performance struggles and regain investor confidence, especially in a market that is currently showing strength.
Analyst Views on SNAP
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
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
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.
