Snap announces Q3 earnings per share of 6 cents, falling short of the expected 12 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy SNAP?
- Q3 Revenue Performance: The company reported a Q3 revenue of $1.51 billion, surpassing the consensus estimate of $1.49 billion.
- Focus on Advertiser Success: The company emphasized that its commitment to performance, creativity, and simplicity is enhancing results for advertisers while providing more communication options for its community.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SNAP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 4.020
Low
7.00
Averages
9.57
High
13.00
Current: 4.020
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.
Irenic Capital Urges Snap to Enhance Value Creation
- Shareholder Value Enhancement: Irenic Capital, holding approximately 2.5% of Snap's shares, proposes to increase the stock price from $3.93 to $26.37 by improving ad revenue and cost structure, indicating strong confidence in the company's future potential with a target market cap of $35 billion.
- Cost Structure Optimization: Snap's workforce has grown from 3,000 pre-COVID to over 5,200 today; Irenic suggests layoffs and efficiency improvements, mirroring Meta's 'Year of Efficiency' strategy to enhance EBITDA margins and maintain competitive advantage.
- AI and Ad Revenue: Irenic emphasizes that Snap should focus on leveraging AI to boost ad revenue, arguing that the current Specs project distracts from core business, and recommends reallocating R&D funds to advertising technology for better ROI.
- Corporate Governance Improvement: Irenic proposes granting Class A shareholders one vote per share, which would not diminish founder control but could enhance inclusion in certain indices, lower capital costs, and maximize shareholder interests.
See More
Microsoft Faces AI Growth Pressure as Stock Plummets
- Stock Plunge: Microsoft experienced a 23% drop in stock price during Q1, marking its worst quarterly performance since the 2008 financial crisis, significantly outpacing the Nasdaq's 7% decline, indicating investor concerns over its AI growth prospects that could impact future financing capabilities.
- AI Assistant Challenges: Microsoft's Copilot AI assistant has seen low user adoption, with only 3% of commercial Office customers holding licenses, forcing the company to allocate Azure cloud resources for improvements to maintain market share amid fierce competition.
- Executive Shake-up: Microsoft reassigned Copilot development head Mustafa Suleyman and appointed former Snap executive Jacob Andreou to lead the Copilot experience for consumers and commercial clients, raising market concerns about the company's strategic direction and potentially affecting team morale.
- Cloud Business Growth: Despite challenges, Microsoft's Azure cloud service achieved a 39% revenue growth in the December quarter, with commercial remaining performance obligations exceeding $625 billion, reflecting strong demand in the cloud infrastructure market that may support the company's future.
See More
Microsoft Faces Challenges as Stock Plummets 23% in Q1
- Disappointing Quarterly Performance: Microsoft experienced a staggering 23% drop in stock value during Q1 2023, marking its steepest decline since the 2008 financial crisis, reflecting investor concerns over its AI prospects and resulting in significant market capitalization loss.
- Concerns Over AI ROI: While Microsoft remains a leader in cloud computing and productivity software, its AI assistant Copilot has only achieved a 3% adoption rate among commercial Office customers, failing to meet market expectations and potentially hindering future revenue growth.
- Executive Shake-Up Impact: The recent reassignment of Copilot development head Mustafa Suleyman raises concerns about leadership effectiveness, especially as the new team faces intense competition from rivals like Google and OpenAI, which could affect the company's strategic direction.
- Strong Cloud Business Growth: Despite challenges, Microsoft's Azure cloud service reported a 39% revenue increase in the December quarter, with commercial remaining performance obligations exceeding $625 billion, indicating strong potential and demand in the AI sector.
See More
Irenic Proposes Major Reforms for Snap
- Stock Price Surge: Following recommendations from Irenic Capital Management to Snap's CEO, Snap Inc. (SNAP) shares surged 13%, marking the largest single-day rally since April 9, 2025, reflecting market optimism about the company's future potential.
- Valuation Enhancement Proposal: Irenic believes Snap should be valued at $35 billion, with the current market cap around $7 billion, suggesting a potential stock price increase to $26.37, which could be achieved if the company effectively implements its recommendations for improved profitability and growth.
- Cost Reduction and Restructuring: Irenic recommends shutting down or spinning off the loss-making Specs unit and highlights that Snap's workforce has grown significantly without adjustments, emphasizing the need for a performance-based compensation structure and AI utilization to enhance ad monetization for cost control.
- Boosting Shareholder Confidence: Snap has approved a $500 million stock buyback program to offset dilution from employee stock compensation, while the board and management remain focused on building a more efficient and profitable business, demonstrating a commitment to long-term value creation.
See More
Irenic Capital Proposes 600% Stock Value Increase for Snap
- Shareholder Recommendations: Irenic Capital Management has proposed a transformative plan to Snap's CEO Evan Spiegel, suggesting that implementing the '6 Steps to 7X' could potentially elevate Snap's stock price from $3.93 to over $26, which would significantly enhance the company's market value if successful.
- Layoffs and AI Utilization: The recommendations include cutting approximately 21% of the workforce, equating to 1,000 employees, while leveraging artificial intelligence to replace existing roles, which could lower costs and improve operational efficiency, thereby positively impacting the company's financial health.
- Business Restructuring Proposal: Irenic suggests shutting down or spinning off Snap's augmented reality glasses unit, Specs, arguing that it has not delivered the expected value, and such a move could help concentrate resources on more promising business areas.
- Shareholder Engagement and Future Outlook: Snap's chairman, Michael Lynton, stated that the company welcomes input from all shareholders and will continue to evaluate actions that drive long-term value, despite the fact that Snap's stock has declined by about 83% since going public in 2017.
See More
Irenic Capital Proposes 600% Increase for Snap Shares
- Stock Surge: Snap shares rose 13% following Irenic Capital's proposal, increasing from $3.93 to $4.44, indicating a positive market response to the potential for value enhancement.
- Strategic Recommendations: Irenic Capital's '6 Steps to 7X' plan aims to elevate Snap's stock price from $3.93 to $26.37, emphasizing workforce reduction by 21% and shutting down Specs as key measures.
- Layoffs and AI Utilization: The proposal suggests Snap should cut 1,000 employees and leverage artificial intelligence to replace existing roles, which could significantly improve the company's financial performance and operational efficiency.
- Long-term Value Commitment: Snap's chairman stated that the company welcomes shareholder input and will continue to evaluate actions that drive long-term value, despite the stock's decline of approximately 83% since its IPO in 2017.
See More
Irenic Capital Urges Snap to Enhance Value Creation
- Shareholder Value Enhancement: Irenic Capital, holding approximately 2.5% of Snap's shares, proposes to increase the stock price from $3.93 to $26.37 by improving ad revenue and cost structure, indicating strong confidence in the company's future potential with a target market cap of $35 billion.
- Cost Structure Optimization: Snap's workforce has grown from 3,000 pre-COVID to over 5,200 today; Irenic suggests layoffs and efficiency improvements, mirroring Meta's 'Year of Efficiency' strategy to enhance EBITDA margins and maintain competitive advantage.
- AI and Ad Revenue: Irenic emphasizes that Snap should focus on leveraging AI to boost ad revenue, arguing that the current Specs project distracts from core business, and recommends reallocating R&D funds to advertising technology for better ROI.
- Corporate Governance Improvement: Irenic proposes granting Class A shareholders one vote per share, which would not diminish founder control but could enhance inclusion in certain indices, lower capital costs, and maximize shareholder interests.
See More
Microsoft Faces AI Growth Pressure as Stock Plummets
- Stock Plunge: Microsoft experienced a 23% drop in stock price during Q1, marking its worst quarterly performance since the 2008 financial crisis, significantly outpacing the Nasdaq's 7% decline, indicating investor concerns over its AI growth prospects that could impact future financing capabilities.
- AI Assistant Challenges: Microsoft's Copilot AI assistant has seen low user adoption, with only 3% of commercial Office customers holding licenses, forcing the company to allocate Azure cloud resources for improvements to maintain market share amid fierce competition.
- Executive Shake-up: Microsoft reassigned Copilot development head Mustafa Suleyman and appointed former Snap executive Jacob Andreou to lead the Copilot experience for consumers and commercial clients, raising market concerns about the company's strategic direction and potentially affecting team morale.
- Cloud Business Growth: Despite challenges, Microsoft's Azure cloud service achieved a 39% revenue growth in the December quarter, with commercial remaining performance obligations exceeding $625 billion, reflecting strong demand in the cloud infrastructure market that may support the company's future.
See More
Microsoft Faces Challenges as Stock Plummets 23% in Q1
- Disappointing Quarterly Performance: Microsoft experienced a staggering 23% drop in stock value during Q1 2023, marking its steepest decline since the 2008 financial crisis, reflecting investor concerns over its AI prospects and resulting in significant market capitalization loss.
- Concerns Over AI ROI: While Microsoft remains a leader in cloud computing and productivity software, its AI assistant Copilot has only achieved a 3% adoption rate among commercial Office customers, failing to meet market expectations and potentially hindering future revenue growth.
- Executive Shake-Up Impact: The recent reassignment of Copilot development head Mustafa Suleyman raises concerns about leadership effectiveness, especially as the new team faces intense competition from rivals like Google and OpenAI, which could affect the company's strategic direction.
- Strong Cloud Business Growth: Despite challenges, Microsoft's Azure cloud service reported a 39% revenue increase in the December quarter, with commercial remaining performance obligations exceeding $625 billion, indicating strong potential and demand in the AI sector.
See More
Irenic Proposes Major Reforms for Snap
- Stock Price Surge: Following recommendations from Irenic Capital Management to Snap's CEO, Snap Inc. (SNAP) shares surged 13%, marking the largest single-day rally since April 9, 2025, reflecting market optimism about the company's future potential.
- Valuation Enhancement Proposal: Irenic believes Snap should be valued at $35 billion, with the current market cap around $7 billion, suggesting a potential stock price increase to $26.37, which could be achieved if the company effectively implements its recommendations for improved profitability and growth.
- Cost Reduction and Restructuring: Irenic recommends shutting down or spinning off the loss-making Specs unit and highlights that Snap's workforce has grown significantly without adjustments, emphasizing the need for a performance-based compensation structure and AI utilization to enhance ad monetization for cost control.
- Boosting Shareholder Confidence: Snap has approved a $500 million stock buyback program to offset dilution from employee stock compensation, while the board and management remain focused on building a more efficient and profitable business, demonstrating a commitment to long-term value creation.
See More
Irenic Capital Proposes 600% Stock Value Increase for Snap
- Shareholder Recommendations: Irenic Capital Management has proposed a transformative plan to Snap's CEO Evan Spiegel, suggesting that implementing the '6 Steps to 7X' could potentially elevate Snap's stock price from $3.93 to over $26, which would significantly enhance the company's market value if successful.
- Layoffs and AI Utilization: The recommendations include cutting approximately 21% of the workforce, equating to 1,000 employees, while leveraging artificial intelligence to replace existing roles, which could lower costs and improve operational efficiency, thereby positively impacting the company's financial health.
- Business Restructuring Proposal: Irenic suggests shutting down or spinning off Snap's augmented reality glasses unit, Specs, arguing that it has not delivered the expected value, and such a move could help concentrate resources on more promising business areas.
- Shareholder Engagement and Future Outlook: Snap's chairman, Michael Lynton, stated that the company welcomes input from all shareholders and will continue to evaluate actions that drive long-term value, despite the fact that Snap's stock has declined by about 83% since going public in 2017.
See More
Irenic Capital Proposes 600% Increase for Snap Shares
- Stock Surge: Snap shares rose 13% following Irenic Capital's proposal, increasing from $3.93 to $4.44, indicating a positive market response to the potential for value enhancement.
- Strategic Recommendations: Irenic Capital's '6 Steps to 7X' plan aims to elevate Snap's stock price from $3.93 to $26.37, emphasizing workforce reduction by 21% and shutting down Specs as key measures.
- Layoffs and AI Utilization: The proposal suggests Snap should cut 1,000 employees and leverage artificial intelligence to replace existing roles, which could significantly improve the company's financial performance and operational efficiency.
- Long-term Value Commitment: Snap's chairman stated that the company welcomes shareholder input and will continue to evaluate actions that drive long-term value, despite the stock's decline of approximately 83% since its IPO in 2017.
See More
