Snap Inc. (SNAP) Pushes Forward with AR Strategy by Forming New AI Partnerships, Despite Varied Analyst Opinions
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 1 hour ago0mins
Snap Inc. Stock Overview: Snap Inc. (NYSE: SNAP) has a consensus Hold rating from analysts, with a 12-month price target of $9.50, indicating a potential upside from its current price of $7.59.
Strategic Partnership with Perplexity: The company has partnered with Perplexity to integrate an AI-powered answer engine into Snapchat, which will enhance user engagement and is expected to generate $400 million for Snap over one year.
Recent Financial Performance: In the third quarter, Snap reported a 10% year-over-year revenue increase to $1.51 billion, an 8% rise in daily active users to 477 million, and a reduced net loss of $104 million.
Focus on Augmented Reality: Snap is dedicated to augmented reality consumer applications, boasting a large creative community and significant user engagement through its AR features, while not producing enterprise AR hardware.
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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 9.50 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
1 Buy
25 Hold
2 Sell
Hold
Current: 7.660
Low
7.00
Averages
9.50
High
13.00
Current: 7.660
Low
7.00
Averages
9.50
High
13.00
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.
Piper Sandler
Neutral
maintain
$9 -> $10
2025-11-06
Reason
Piper Sandler
Price Target
$9 -> $10
2025-11-06
maintain
Neutral
Reason
Piper Sandler raised the firm's price target on Snap to $10 from $9 and keeps a Neutral rating on the shares. The firm notes shares were up about 15% in after-hours trading as revenue and EBITDA were both above Street as DR revenue accelerated and expenses were better than expected. Guide for Q4 implies revenue up high single digit, in-line with Q3 but below Digital Ad peers. Subscription trends remain constructive and now represent a $750M run rate.
UBS
Stephen Ju
Neutral
maintain
$9 -> $10
2025-11-06
Reason
UBS
Stephen Ju
Price Target
$9 -> $10
2025-11-06
maintain
Neutral
Reason
UBS analyst Stephen Ju raised the firm's price target on Snap to $10 from $9 and keeps a Neutral rating on the shares. Snap's distribution revenue is likely to offset "anemic" ad growth, the analyst tells investors in a research note.
See All Ratings
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
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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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