Snap (SNAP) AI Stock Analysis

• Market Cap: $15.69B
• Dividend Yield: N/A
• Average Volume (3M): 39.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 13.18%
• EPS Growth: 54.39%
• Country: US
• Employees: 5,061
• Sector: Communication Services
• Sector Strength: 80
• Industry: Internet Content & Information
• EPS (TTM): -0.16
• Shares Outstanding: 1,417,027,800
• 10 Day Avg. Volume: 42,912,775
• 30 Day Avg. Volume: 39,097,761
• PEG Ratio: 0.52
• Price to Book (P/B): 7.29
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 81.72
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 5.22
• Enterprise Value/Ebitda: -42.82
• 1Y Price Target: $9.40
• Price Target Upside: 24.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 27

• Rating: 60 Neutral
• Price Target: $8.00 ▲(6.10% Upside)

Snap's overall stock score reflects a mix of strengths and challenges. The company's financial performance shows growth in revenue and cash flow, but profitability remains a concern. Technical analysis indicates bearish sentiment, while valuation metrics are hindered by ongoing losses. The earnings call provides a cautiously optimistic outlook with strong user engagement and revenue growth, offset by challenges in the ad platform and North American market.

Positive Factors

Monetization Strategy

Sponsored Snaps are driving incremental reach & conversions for advertisers in SNAP’s highest monetized markets, & SNAP will build demand to support deeper monetization across expanded Sponsored Snaps inventory.

Revenue Growth

Snapchat+ revenue grew significantly by 64% year-over-year, surpassing street expectations.

User Engagement

Snap's DAU remained in growth territory during 2Q:25 with 469 million, up from 460 million in 1Q:25, and above the company's expectation of 468 million.

Negative Factors

Ad Revenue Slowdown

SNAP's 2Q results and outlook continue to prove SNAP is bleeding market share, with advertising revenue growth slowing down.

Market Competition

The competitive presence of Meta and Google limits the utility and demand for Snap's future products.

Revenue Performance

Snap's 2Q revenue and EBITDA figures were below expectations, contrasting with peers that have surpassed their targets.

Snap Business Overview & Revenue Model

Company Description

Snap Inc. is a technology and social media company known for its flagship product, Snapchat, a multimedia messaging app that allows users to send photos, videos, and messages that disappear after being viewed. Founded in 2011 and headquartered in Santa Monica, California, Snap operates within the social media and technology sectors. The company also offers a range of augmented reality (AR) features and tools for content creation, catering primarily to a younger demographic.

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's financial performance shows revenue growth and improved cash flow management, yet profitability remains a challenge with ongoing losses. The company's strong cash position and improved leverage provide stability, but addressing profitability is crucial for enhanced financial strength.

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	5.64B	5.36B	4.61B	4.60B	4.12B	2.51B
Gross Profit	3.03B	2.89B	2.49B	2.79B	2.37B	1.32B
EBITDA	-370.24M	-492.60M	-1.10B	-1.18B	-337.55M	-742.21M
Net Income	-546.30M	-697.86M	-1.32B	-1.43B	-487.95M	-944.84M
Balance Sheet
Total Assets	7.40B	7.94B	7.97B	8.03B	7.54B	5.02B
Cash, Cash Equivalents and Short-Term Investments	2.89B	3.38B	3.54B	3.94B	3.69B	2.54B
Total Debt	616.02M	4.24B	4.34B	4.18B	2.63B	2.00B
Total Liabilities	5.33B	5.49B	5.55B	5.45B	3.75B	2.69B
Stockholders Equity	2.07B	2.45B	2.41B	2.58B	3.79B	2.33B
Cash Flow
Free Cash Flow	392.38M	218.65M	34.79M	55.31M	223.00M	-225.48M
Operating Cash Flow	586.61M	413.48M	246.52M	184.61M	292.88M	-167.64M
Investing Cash Flow	-153.41M	-717.08M	570.95M	-1.06B	90.23M	-729.86M
Financing Cash Flow	-569.29M	-428.62M	-458.79M	306.71M	1.07B	922.79M

Snap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNAP, the sentiment is Negative. The current price of 7.54 is below the 20-day moving average (MA) of 9.43, below the 50-day MA of 8.88, and below the 200-day MA of 9.88, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNAP.

Snap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	79 Outperform	$26.31B	14.20	48.41%	―	17.81%	1175.52%
RDDT	78 Outperform	$37.77B	179.63	10.11%	―	69.97%	―
TME	72 Outperform	$30.36B	25.16	14.37%	0.82%	4.59%	83.27%
MTCH	71 Outperform	$9.14B	18.35	-865.98%	1.05%	-0.60%	-11.05%
Sector *	61 Neutral	$41.49B	-3.35	-10.67%	4.00%	2.70%	-41.55%
SNAP	60 Neutral	$15.69B	―	-26.42%	―	13.18%	54.39%

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.