Monness analyst Brian White has maintained their neutral stance on SNAP stock, giving a Hold rating today.
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Brian White has given his Hold rating due to a combination of factors that balance Snap’s structural opportunities with its ongoing execution challenges. He acknowledges that Snap operates in a digital advertising market benefiting from favorable long-term demand, and he expects the company to deliver fourth-quarter 2025 revenue in line with guidance, with year-over-year growth of around 10% and modest improvement in profitability. However, this growth pace remains slower than in prior periods and below typical seasonal patterns, signaling that momentum is still subdued relative to the broader recovery seen in digital ads.
At the user level, he anticipates daily active user expansion to slow, with particular weakness in North America offset by more robust gains in the rest of the world and incremental ARPU improvement. White also notes that competitors such as Meta and Alphabet are executing at a higher level and are better positioned to benefit from generative AI tailwinds, which puts Snap at a relative disadvantage. While the new partnership with Perplexity AI and the expected revenue contribution beginning in 2026 are viewed as positives, they are not sufficient in the near term to outweigh concerns about inconsistent performance and a challenging competitive and macroeconomic backdrop. This mix of moderate growth, strategic promise, but material execution and competitive risks supports maintaining a Hold rather than moving to a more positive stance.
In another report released today, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 108 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNAP in relation to earlier this year.