Snap (SNAP) AI Stock Analysis

• Market Cap: $16.14B
• Dividend Yield: N/A
• Average Volume (3M): 34.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 14.91%
• EPS Growth: 59.90%
• Country: US
• Employees: 5,061
• Sector: Communication Services
• Sector Strength: 85
• Industry: Internet Content & Information
• EPS (TTM): -0.08
• Shares Outstanding: 1,417,027,800
• 10 Day Avg. Volume: 30,136,336
• 30 Day Avg. Volume: 34,966,701
• PEG Ratio: -1.03
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.71
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: -6.84
• 1Y Price Target: $9.95
• Price Target Upside: -0.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 66 Neutral
• Price Target: $10.50 ▲(4.90%Upside)

Snap's stock score is supported by strong revenue growth and strategic focus on AI and AR, leading to positive earnings call sentiment. However, ongoing profitability challenges and high valuation concerns weigh on the score. Technical analysis indicates positive momentum, but valuation remains a significant risk.

Positive Factors

Advertising Revenue Growth

Snap Inc.'s Direct Response advertising now accounts for 75% of overall ad revenue, driven by improvements in the ad platform and a growing base of advertisers.

Innovative Advertising

Sponsored Snaps is enabling the first ever monetization of the chat inbox with an innovative, non-intrusive ad format that gives users the choice to engage.

Negative Factors

Brand Advertising Weakness

Snap Inc.'s Brand advertising business continues to face weak demand trends, creating a challenge for total advertising revenue.

Macroeconomic Uncertainty

Macro uncertainty and limited advertising visibility overshadow Snap's improving direct response trends.

Snap Business Overview & Revenue Model

Company Description

Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, story ads, collection ads, dynamic ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

How the Company Makes Money

Snap Inc. primarily generates revenue through advertising, which constitutes the majority of its income. The company offers various ad products, including Snap Ads, which are vertical full-screen video ads that appear between stories or in the Discover section; sponsored lenses and filters, which allow brands to create interactive AR experiences; and commercials, which are non-skippable six-second ads within curated content. Snap's self-serve ad platform enables businesses of all sizes to create and manage ad campaigns. Additionally, Snap collaborates with media companies to provide premium content through Snapchat Discover, sharing advertising revenue from these partnerships. While advertising remains the core revenue stream, Snap continues to explore monetization opportunities through in-app purchases and other innovative features.

Snap Financial Statement Overview

Summary

Snap shows a trajectory of revenue growth and improved cash flow management, yet profitability remains a key challenge with continued losses. The improvement in leverage and cash reserves provides stability, but the company needs to address profitability to enhance financial strength further.

Income Statement

Snap's revenue has shown consistent growth, with a notable increase from the previous period, improving by approximately 3.14% in the TTM (Trailing-Twelve-Months). Despite positive gross profit margins around 54.07%, the company struggles with negative EBIT and net income, reflecting ongoing profitability challenges. Efforts to reduce the loss are evident, but profitability remains a concern.

Balance Sheet

Snap's balance sheet displays a strong cash position with a significant amount of cash and equivalents. The debt-to-equity ratio has improved due to a decrease in total debt, indicating better leverage management. However, the equity ratio remains relatively low, with stockholders' equity comprising only about 30.46% of total assets, pointing to reliance on liabilities.

Cash Flow

Operating cash flow has improved, indicating better cash generation from operations. The free cash flow has grown significantly, showcasing improved efficiency in cash management. However, the company still faces challenges with achieving positive net income, affecting the overall cash flow to net income ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53B	5.36B	4.61B	4.60B	4.12B	2.51B
Gross Profit	2.99B	2.89B	2.49B	2.79B	2.37B	1.32B
EBITDA	-310.94M	-492.60M	-1.10B	-1.18B	-337.55M	-742.21M
Net Income	-532.35M	-697.86M	-1.32B	-1.43B	-487.95M	-944.84M
Balance Sheet
Total Assets	7.94B	7.94B	7.97B	8.03B	7.54B	5.02B
Cash, Cash Equivalents and Short-Term Investments	3.38B	3.38B	3.54B	3.94B	3.69B	2.54B
Total Debt	4.24B	4.24B	4.34B	4.18B	2.63B	2.00B
Total Liabilities	5.49B	5.49B	5.55B	5.45B	3.75B	2.69B
Stockholders Equity	2.45B	2.45B	2.41B	2.58B	3.79B	2.33B
Cash Flow
Free Cash Flow	295.15M	218.65M	34.79M	55.31M	223.00M	-225.48M
Operating Cash Flow	476.74M	413.48M	246.52M	184.61M	292.88M	-167.64M
Investing Cash Flow	-583.15M	-717.08M	570.95M	-1.06B	90.23M	-729.86M
Financing Cash Flow	-41.39M	-428.62M	-458.79M	306.71M	1.07B	922.79M

Snap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNAP, the sentiment is Positive. The current price of 10.01 is above the 20-day moving average (MA) of 8.94, above the 50-day MA of 8.63, and above the 200-day MA of 9.98, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNAP.

Snap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	80 Outperform	$24.72B	13.10	48.41%	―	17.81%	1175.52%
RDDT	75 Outperform	$26.72B	223.25	5.77%	―	64.12%	―
TME	72 Outperform	$32.02B	26.11	14.37%	0.84%	4.59%	83.27%
SNAP	66 Neutral	$16.14B	―	-23.97%	―	14.91%	59.90%
MTCH	64 Neutral	$7.90B	15.96	-865.98%	2.36%	0.40%	-11.05%
Sector *	55 Neutral	HK$66.29B	-2.30	-3.61%	6.47%	-4.24%	-17.51%
DJT	―	$4.97B	―	-19.06%	―	―	―

Snap Corporate Events

Snap Co-Founders Ensure Proposal Approval Before Meeting

Snap Inc. announced its 2025 annual meeting of stockholders will be held online on August 1, 2025. The meeting will address the election of eleven directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Co-founders Evan Spiegel and Robert Murphy, who hold significant voting power, intend to approve these proposals by written consent, ensuring their passage before the meeting. This move highlights the control and influence the co-founders have over the company’s governance decisions.

The most recent analyst rating on (SNAP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Snap stock, see the SNAP Stock Forecast page.