Snap (SNAP) AI Stock Analysis

• Market Cap: $14.73B
• Dividend Yield: N/A
• Average Volume (3M): 60.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 11.75%
• EPS Growth: 49.19%
• Country: US
• Employees: 5,061
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.06
• Shares Outstanding: 1,465,208,400
• 10 Day Avg. Volume: 76,325,719
• 30 Day Avg. Volume: 60,572,291
• 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: 0.97
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: -63.66
• 1Y Price Target: $9.50
• Price Target Upside: 15.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 28
• EPS Forecast (FY): -0.34
• Revenue Forecast (FY): $5.91B

• Rating: 68 Neutral
• Price Target: $10.00 ▲(21.21% Upside)

Snap's overall stock score reflects strong technical momentum and positive earnings call highlights, tempered by valuation challenges and profitability concerns. The company's robust international growth and cash flow improvements are significant positives, but potential user engagement declines and regulatory impacts in North America remain key risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Snap's advertising solutions and expanding market presence, supporting long-term business sustainability.

Cash Flow Improvements

Improved cash flow management enhances Snap's financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

AI and AR Innovation

Continued innovation in AI and AR strengthens Snap's competitive edge, attracting users and advertisers, and fostering long-term growth potential.

Negative Factors

Profitability Challenges

Persistent profitability issues could limit Snap's ability to reinvest in growth initiatives, impacting long-term financial health and shareholder returns.

Regulatory Impacts

Regulatory challenges, especially in key markets, may hinder user growth and engagement, affecting Snap's ability to monetize its platform effectively.

Leadership Change

Leadership changes, such as the departure of key marketing personnel, could disrupt strategic initiatives and impact brand positioning and market outreach.

Snap Business Overview & Revenue Model

Company Description

Snap Inc., the parent company of Snapchat, is a social media and technology company that specializes in multimedia messaging and augmented reality (AR) experiences. Founded in 2011, Snap operates within the digital advertising sector, focusing on creating innovative tools for communication through images and videos. Its core products include Snapchat, a platform that allows users to send ephemeral messages, stories, and engage with AR filters and lenses, as well as Snap Camera and Spectacles, its AR glasses.

How the Company Makes Money

Snap generates revenue primarily through advertising. The majority of its income comes from various ad formats on Snapchat, including Snap Ads, Story Ads, and Collection Ads, which allow brands to reach a targeted audience. Snap also offers AR advertising solutions that enable brands to create immersive experiences for users. Additionally, Snap has partnerships with various companies and platforms to expand its advertising reach and capabilities. The company invests in data analytics to enhance ad targeting and effectiveness, ultimately driving higher ad spend from clients. Furthermore, Snap's revenue is bolstered by partnerships with media companies and content creators that produce engaging content for the platform, attracting more users and advertisers.

Snap Financial Statement Overview

Summary

Snap shows revenue growth and improved cash flow management, yet profitability remains a challenge with ongoing 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	5.77B	5.36B	4.61B	4.60B	4.12B	2.51B
Gross Profit	3.13B	2.89B	2.49B	2.79B	2.37B	1.32B
EBITDA	-223.69M	-492.60M	-1.10B	-1.18B	-337.55M	-742.21M
Net Income	-496.60M	-697.86M	-1.32B	-1.43B	-487.95M	-944.84M
Balance Sheet
Total Assets	7.58B	7.94B	7.97B	8.03B	7.54B	5.02B
Cash, Cash Equivalents and Short-Term Investments	2.99B	3.38B	3.54B	3.94B	3.69B	2.54B
Total Debt	4.15B	4.24B	4.34B	4.18B	2.63B	2.00B
Total Liabilities	5.35B	5.49B	5.55B	5.45B	3.75B	2.69B
Stockholders Equity	2.23B	2.45B	2.41B	2.58B	3.79B	2.33B
Cash Flow
Free Cash Flow	413.99M	218.65M	34.79M	55.31M	223.00M	-225.48M
Operating Cash Flow	617.23M	413.48M	246.52M	184.61M	292.88M	-167.64M
Investing Cash Flow	-38.51M	-717.08M	570.95M	-1.06B	90.23M	-729.86M
Financing Cash Flow	-591.61M	-428.62M	-458.79M	306.71M	1.07B	922.79M

Snap Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.25
• 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 Neutral. The current price of 8.25 is above the 20-day moving average (MA) of 8.07, above the 50-day MA of 8.02, and below the 200-day MA of 8.56, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 50.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNAP.

Snap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	80 Outperform	$3.34T	27.27	35.45%	0.29%	13.55%	34.26%
PINS	73 Outperform	$17.98B	8.84	51.49%	―	16.79%	819.94%
RDDT	72 Outperform	$36.63B	103.30	15.22%	―	69.71%	―
META	71 Outperform	$1.54T	26.93	32.64%	0.35%	21.27%	6.16%
SNAP	68 Neutral	$14.73B	―	-22.38%	―	11.75%	49.19%
SPOT	66 Neutral	$129.94B	82.61	22.10%	―	14.10%	102.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Snap Corporate Events

Snap Inc. Earnings Call: Growth Amid Challenges

Snap Inc.’s recent earnings call revealed a mixed sentiment, with the company showcasing robust revenue and user growth, particularly in international markets and through direct revenue streams. However, concerns were raised about challenges in North America, potential engagement headwinds, and regulatory issues that could impact future performance.

Snap Inc. Reports Strong Q3 2025 Growth

Snap Inc., a technology company known for its multimedia messaging app Snapchat, continues to innovate in the social media and augmented reality sectors, offering unique communication tools and experiences. In its latest earnings report for the third quarter of 2025, Snap Inc. reported a revenue increase of 10% year-over-year, reaching $1,507 million. The company also saw a rise in daily active users by 8% to 477 million and monthly active users by 7% to 943 million. Additionally, Snap Inc. announced a stock repurchase program of up to $500 million, aiming to offset stock dilution from employee compensation. Key financial metrics showed improvement, with a net loss reduction to $104 million from $153 million the previous year, and adjusted EBITDA increasing to $182 million from $132 million. Operating cash flow and free cash flow also saw significant growth. Snap Inc. highlighted its strategic focus on enhancing user engagement and diversifying revenue streams. Direct response advertising revenue grew by 8%, and purchase-related ad revenue increased by over 30%. The company also emphasized its investment in augmented reality, with significant user engagement in AR Lenses and the introduction of new AI-powered tools. Looking ahead, Snap Inc. remains optimistic about its long-term growth, driven by innovation and strategic initiatives aimed at expanding its user base and enhancing its product offerings.

Snap Announces $500 Million Stock Repurchase Program

On November 5, 2025, Snap Inc. announced a stock repurchase program of up to $500 million for its Class A common stock, aiming to offset dilution from employee stock units. The company’s Q3 2025 financial results showed a 10% revenue increase year-over-year to $1,507 million, with significant growth in user engagement and advertising revenue, highlighting its strategic focus on performance and innovation.

The most recent analyst rating on (SNAP) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Snap stock, see the SNAP Stock Forecast page.