Should I Buy SNAP? SNAP 2026 Analysis

Should You Buy Snap Inc (SNAP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

7.240

1 Day change

-5.61%

52 Week Range

11.730

Analysis Updated At

2026/01/26

Snap Inc. (SNAP) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock lacks immediate positive momentum, faces regulatory and growth headwinds, and has mixed financial and analyst outlooks. While there are some potential catalysts, the current technical and fundamental indicators suggest holding off on a purchase until clearer growth signals emerge.

Technical Analysis

The technical indicators for SNAP are bearish. The MACD histogram is negative and contracting, RSI is neutral at 41.446, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key moving averages and near its support level of 7.376, with resistance at 8.376. The pre-market price is $7.59, down 0.39%, indicating weak momentum.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Snap settled a significant social media addiction lawsuit, alleviating legal risks.
Revenue increased by 9.78% YoY in Q3
Gross margin improved to 55.26%, up 3.39% YoY.
Partnership with Perplexity shows potential for AI-driven growth and diversification of revenue streams.

Neutral/Negative Catalysts

Analysts have lowered price targets, citing headwinds in advertising growth and usage.
Regulatory risks from potential social media bans in the U.K. and France.
Net income dropped 32.44% YoY, and EPS fell 33.33% YoY in Q3
Stock remains below key moving averages, indicating weak investor sentiment.

Financial Performance

In Q3 2025, Snap's revenue grew by 9.78% YoY to $1.51 billion, but net income dropped by 32.44% YoY to -$103.54 million. EPS declined by 33.33% YoY to -$0.06. Gross margin improved to 55.26%, up 3.39% YoY, indicating better cost management.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is mixed to neutral. Recent price target changes include downgrades from UBS ($9 from $10) and Guggenheim ($8.50 from $9) due to advertising growth challenges. However, some analysts like Evercore ISI and BMO Capital raised targets to $13, citing partnerships and AI-driven growth potential. Most ratings remain Neutral, reflecting cautious optimism.

28 Analyst Rating

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 USD and a high forecast of 13 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.

2 Buy

24 Hold

2 Sell

Hold

Current: 7.670

Low

Averages

9.57

High

Current: 7.670

Low

Averages

9.57

High

UBS

Neutral

downgrade

$10 -> $9

AI Analysis

2026-01-20

Reason

UBS

Price Target

$10 -> $9

AI Analysis

2026-01-20

downgrade

Neutral

Reason

UBS lowered the firm's price target on Snap to $9 from $10 and keeps a Neutral rating on the shares. The Q4 earnings outlook for advertising-driven companies points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December, the analyst tells investors in a research note. Among nine companies, five exceeded prior forecasts, two were in line, and two came in modestly below expectations, UBS says.

Guggenheim

Michael Morris

Neutral

downgrade

2025-12-19

Reason

Guggenheim

Michael Morris

Price Target

2025-12-19

downgrade

Neutral

Reason

Guggenheim analyst Michael Morris lowered the firm's price target on Snap to $8.50 from $9 and keeps a Neutral rating on the shares. Entering 2026, the firm sees headwinds to usage growth and below-peer average core advertising growth tempering investor interest, the analyst says while lowering the firm's first half of 2026 DAU forecast to reflect the view that current challenges persist beyond a single quarter.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SNAP

Unlock Now

SNAP Should I Buy

SNAP Should I Buy

Should You Buy Snap Inc (SNAP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch