Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy SNAP?
Source: Yahoo Finance
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
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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 9.57 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: 5.120
Low
7.00
Averages
9.57
High
13.00
Current: 5.120
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.
Snap Inc. Reports Q4 Earnings Beat Amid Broader Market Decline
- Earnings Beat: Snap Inc. reported quarterly earnings of three cents per share, surpassing analyst expectations of a three-cent loss, with quarterly revenue reaching $1.72 billion, exceeding the consensus estimate of $1.702 billion by 0.84%, reflecting a 10.21% year-over-year increase.
- User Metrics Decline: Despite the revenue beat, daily active users (DAU) fell to 474,000 in Q4 from 477,000 in Q3, although the company achieved 946 million global monthly active users (MAU), marking a 6% year-over-year increase.
- Technical Analysis Shows Pressure: The stock is currently trading 29.1% below its 20-day simple moving average (SMA) and 32.4% below its 100-day SMA, indicating significant bearish pressure, with shares down 49.62% over the past 12 months.
- Analyst Ratings and Target Downgrades: The stock carries a Hold rating with an average price target of $10.01, while recent downgrades from Evercore ISI, Wells Fargo, and Cantor Fitzgerald on February 5 lowered targets to $9.00, $8.00, and $7.00, respectively.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
Wall Street Analysts Adjust ROKU Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their outlook on ROKU stock, reflecting varying market perceptions that could influence investor decisions and market sentiment.
- Overview of Ratings Update: While specific upgrades or downgrades are not detailed, such changes in analyst ratings typically have a direct impact on stock prices, prompting investors to stay alert for further developments.
- Expected Market Reaction: The adjustments in analyst ratings may lead to short-term volatility in ROKU stock, and investors should consider the significance of these changes in their investment strategies to make informed decisions.
- Source Information: This rating change information is provided by Benzinga, highlighting the critical role analysts play in the market and their potential impact on investor decision-making.
See More
Snap Reports Q4 Revenue Beat Amid Market Decline
- Revenue Growth: Snap's Q4 revenue increased by 10% year-over-year to $1.72 billion, surpassing analysts' expectations of $1.70 billion, indicating stable growth in advertising sales despite a declining market sentiment.
- Stock Price Plunge: Despite the upbeat earnings report, Snap's stock plummeted 13.4% on Thursday, marking its steepest drop since last August, reflecting investor concerns over tech stocks and market uncertainty.
- Forecast Outlook: Snap expects Q1 revenue to be between $1.5 billion and $1.53 billion, falling short of analysts' projections of $1.55 billion, indicating potential weakness in growth prospects that could affect investor confidence.
- Analyst Ratings: Despite the stock decline, analysts from Wells Fargo and B. Riley remain optimistic about Snap, noting a positive shift towards subscriptions in its business model, with B. Riley upgrading its rating to 'Buy' while maintaining a price target of $10.
See More
Snap Inc. Surprises with Quarterly Profit but Faces User Engagement Decline
- Earnings Surprise: Snap Inc. reported fourth-quarter earnings of 3 cents per share, surpassing expectations of a 3-cent loss, with revenue rising 10.2% year-over-year to $1.72 billion, exceeding analyst estimates of $1.70 billion, indicating improved profitability.
- User Engagement Decline: Despite the earnings beat, North American daily active users fell sequentially, and global daily active users also missed estimates, attributed to reduced community marketing spend and regulatory-driven account removals in Australia, highlighting increasing competitive pressure.
- Intensifying Competition: Analyst Boone noted that stronger AI-driven content recommendations from competitors challenge Snap's ability to retain user attention and defend advertising share, with projected stock-based compensation for 2025 expected to exceed EBITDA, indicating cost control pressures.
- Future Strategic Initiatives: Snap is testing new social features to better compete with Instagram and TikTok, with the planned 2026 launch of Specs potentially serving as a differentiated mass-market AI glasses platform, although revenue from the Perplexity integration remains excluded from near-term guidance.
See More
Snap Inc. Reports Q4 Earnings Beat Amid Broader Market Decline
- Earnings Beat: Snap Inc. reported quarterly earnings of three cents per share, surpassing analyst expectations of a three-cent loss, with quarterly revenue reaching $1.72 billion, exceeding the consensus estimate of $1.702 billion by 0.84%, reflecting a 10.21% year-over-year increase.
- User Metrics Decline: Despite the revenue beat, daily active users (DAU) fell to 474,000 in Q4 from 477,000 in Q3, although the company achieved 946 million global monthly active users (MAU), marking a 6% year-over-year increase.
- Technical Analysis Shows Pressure: The stock is currently trading 29.1% below its 20-day simple moving average (SMA) and 32.4% below its 100-day SMA, indicating significant bearish pressure, with shares down 49.62% over the past 12 months.
- Analyst Ratings and Target Downgrades: The stock carries a Hold rating with an average price target of $10.01, while recent downgrades from Evercore ISI, Wells Fargo, and Cantor Fitzgerald on February 5 lowered targets to $9.00, $8.00, and $7.00, respectively.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
Wall Street Analysts Adjust ROKU Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their outlook on ROKU stock, reflecting varying market perceptions that could influence investor decisions and market sentiment.
- Overview of Ratings Update: While specific upgrades or downgrades are not detailed, such changes in analyst ratings typically have a direct impact on stock prices, prompting investors to stay alert for further developments.
- Expected Market Reaction: The adjustments in analyst ratings may lead to short-term volatility in ROKU stock, and investors should consider the significance of these changes in their investment strategies to make informed decisions.
- Source Information: This rating change information is provided by Benzinga, highlighting the critical role analysts play in the market and their potential impact on investor decision-making.
See More
Snap Reports Q4 Revenue Beat Amid Market Decline
- Revenue Growth: Snap's Q4 revenue increased by 10% year-over-year to $1.72 billion, surpassing analysts' expectations of $1.70 billion, indicating stable growth in advertising sales despite a declining market sentiment.
- Stock Price Plunge: Despite the upbeat earnings report, Snap's stock plummeted 13.4% on Thursday, marking its steepest drop since last August, reflecting investor concerns over tech stocks and market uncertainty.
- Forecast Outlook: Snap expects Q1 revenue to be between $1.5 billion and $1.53 billion, falling short of analysts' projections of $1.55 billion, indicating potential weakness in growth prospects that could affect investor confidence.
- Analyst Ratings: Despite the stock decline, analysts from Wells Fargo and B. Riley remain optimistic about Snap, noting a positive shift towards subscriptions in its business model, with B. Riley upgrading its rating to 'Buy' while maintaining a price target of $10.
See More
Snap Inc. Surprises with Quarterly Profit but Faces User Engagement Decline
- Earnings Surprise: Snap Inc. reported fourth-quarter earnings of 3 cents per share, surpassing expectations of a 3-cent loss, with revenue rising 10.2% year-over-year to $1.72 billion, exceeding analyst estimates of $1.70 billion, indicating improved profitability.
- User Engagement Decline: Despite the earnings beat, North American daily active users fell sequentially, and global daily active users also missed estimates, attributed to reduced community marketing spend and regulatory-driven account removals in Australia, highlighting increasing competitive pressure.
- Intensifying Competition: Analyst Boone noted that stronger AI-driven content recommendations from competitors challenge Snap's ability to retain user attention and defend advertising share, with projected stock-based compensation for 2025 expected to exceed EBITDA, indicating cost control pressures.
- Future Strategic Initiatives: Snap is testing new social features to better compete with Instagram and TikTok, with the planned 2026 launch of Specs potentially serving as a differentiated mass-market AI glasses platform, although revenue from the Perplexity integration remains excluded from near-term guidance.
See More
