John Blackledge, an analyst from TD Cowen, maintained the Hold rating on Snap. The associated price target remains the same with $9.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John Blackledge has given his Hold rating due to a combination of factors impacting Snap’s financial outlook. Despite a slight improvement in revenue growth expected for the third quarter of 2025, Snap has faced several challenges that have influenced this cautious rating. These include issues with ad auction pricing that affected campaign prices in the second quarter, and a temporary negative impact on ad pricing due to an expansion in Sponsored Snaps ad inventory, which is anticipated to be a short-term challenge with potential long-term benefits.
Additionally, Snap is dealing with ongoing softness in brand advertising and increasing infrastructure costs, which have risen significantly year-over-year. On the positive side, Snap has seen a substantial increase in active advertisers and a notable rise in Snap+ revenue. Looking ahead, there is potential for modest improvements in advertising revenue growth and margin expansion. However, the overall outlook remains cautious, with a price target maintained at $9, leading to the Hold recommendation.