Snap (SNAP) AI Stock Analysis

• Market Cap: $13.60B
• Dividend Yield: N/A
• Average Volume (3M): 49.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• 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: 30,366,398
• 30 Day Avg. Volume: 49,840,261
• 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: 1.05
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: -63.66
• 1Y Price Target: $9.50
• Price Target Upside: 18.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $8.50 ▲(5.85% Upside)

Snap's overall stock score reflects a mix of strengths and challenges. Financial performance shows growth but lacks profitability. Technical analysis indicates neutral momentum. Valuation is weak due to negative earnings. The earnings call and corporate events provide positive strategic direction, but regional challenges and regulatory impacts remain concerns.

Positive Factors

Revenue Growth

Snap's consistent revenue growth, driven by strong advertising demand and expanded direct revenue streams, indicates robust business model execution and market position.

User Growth

The increase in daily active users reflects Snap's ability to attract and retain users, enhancing its platform's value for advertisers and supporting long-term growth.

Cash Flow Improvement

Improved cash flow generation demonstrates Snap's operational efficiency and ability to reinvest in growth initiatives, supporting sustainable business development.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing net losses highlight profitability challenges, which may limit Snap's ability to invest in new opportunities and affect long-term financial health.

Regulatory Impact

Regulatory challenges, such as those in Australia and Russia, could hinder user engagement and growth, impacting Snap's ability to expand its user base and advertising revenue.

Leadership Change

The departure of Snap's General Counsel could disrupt legal and strategic operations, affecting the company's ability to navigate complex regulatory environments and corporate governance.

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: Positive
• Last Price: 8.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.03 is below the 20-day moving average (MA) of 8.04, above the 50-day MA of 7.97, and below the 200-day MA of 8.36, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.18 is Negative, 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
GOOGL	85 Outperform	$3.88T	31.69	35.45%	0.26%	13.55%	34.26%
PINS	77 Outperform	$18.07B	9.27	51.49%	―	16.79%	819.94%
META	76 Outperform	$1.70T	29.75	32.64%	0.31%	21.27%	6.16%
RDDT	75 Outperform	$44.36B	130.51	15.22%	―	69.71%	―
SPOT	66 Neutral	$116.32B	74.29	22.10%	―	14.10%	102.32%
SNAP	63 Neutral	$13.60B	―	-22.38%	―	11.75%	49.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Snap Corporate Events

Snap Expands Board with New Director Appointment

On December 4, 2025, Snap Inc. expanded its board of directors from eleven to twelve members by appointing Matthew McRae, CEO of Arlo Technologies, Inc., to the newly created position. McRae’s extensive experience in technology and product innovation is expected to be a valuable asset for Snap as it continues to grow and capitalize on future opportunities.

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.