Social media platform Snap (SNAP) is scheduled to announce its results for the second quarter of 2025 on August 5. SNAP stock is significantly down from the peak levels seen in 2021, as the privacy changes made by iPhone maker Apple (AAPL) impacted the effectiveness of its ad platform. While Snap, the owner of Snapchat, has taken several efforts to enhance its platform, the stock is down 15% year-to-date, as investors think that the company is lagging rivals like Meta Platforms (META), which is aggressively leveraging artificial intelligence (AI) to boost the attractiveness of its ad offerings.
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Wall Street expects Snap to report a higher loss per share of $0.16 in Q2 2025, compared to $0.15 in the prior-year quarter. Revenue is estimated to rise about 9% to $1.35 billion.
According to Main Street Data, Snap reported a 9% rise in its Q1 2025 daily active users to 460 million. Investors will be keen to know if the company is able to sustain the growth in its user base, especially in the North American market, which has been stagnant.
Analysts’ Views Ahead of Snap’s Q2 Earnings
Heading into the Q2 results, TD Cowen analyst John Blackledge increased the price target for Snap Inc. to $10 from $9 and reaffirmed a Hold rating. Given softer-than-anticipated tariffs, the 5-star analyst now expects the company’s Q2 sales to grow by 12% year-over-year, which is above the consensus forecast. Blackledge’s forecast is driven by continued strength in the company’s Direct Response and growth in Snapchat+ subscriptions, offset by further softness in Brand advertising revenue.
Meanwhile, Blackledge raised his estimates for 2025 to 2030 on softer-than-expected tariff impact and a positive Q2 2025 digital advertising check. He also expects SNAP to benefit from lower TikTok spend.
Likewise, Bernstein analyst Mark Shmulik increased the price target for Snap stock to $10 from $9 and kept a Hold rating. Despite a turbulent start to the quarter and, in fact, the year, the 5-star analyst now finds it hard to find “obvious” shorts across the Internet sector and into Q2 earnings season. Shmulik stated that Q2 looks strong, despite a turbulent start. He highlighted that the pockets of weakness in the second quarter were from China-based retailers exposed to tariff changes.
AI Analyst Is Cautious on SNAP Stock Ahead of Q2 Print
Interestingly, TipRanks’ AI stock analyst has assigned a Neutral rating to SNAP stock with a price target of $10, indicating 11% upside potential. While TipRanks’ AI analysis noted favorable Q1 earnings call highlights and positive momentum suggested by technical indicators, profitability challenges and a negative valuation due to ongoing losses adversely impact SNAP stock.
Options Traders Anticipate Major Move on Snap’s Q2 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 17.5% move in either direction in SNAP stock in reaction to Q2 results.
Is SNAP a Good Stock to Buy?
Overall, Wall Street is sidelined on Snap stock, with a Hold consensus rating based on two Buys and 10 Hold recommendations. The average SNAP stock price target of $10.20 indicates 8.2% upside potential from current levels.
