Snap Inc (SNAP)
NYSE:SNAP
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Snap
(NYSE:SNAP)
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Rating:53Neutral
Price Target:
$5.50
▼(-8.79% Downside)
Action:Reiterated
Date:05/21/26
The score is primarily driven by improving financial trajectory and strong free cash flow despite ongoing GAAP losses and elevated leverage. Technicals remain weak versus long-term trend levels, and valuation is constrained by negative earnings and no dividend support. Earnings-call commentary was net positive on momentum and cost actions, but near-term restructuring charges, ad pricing/mix pressure, and geopolitical uncertainty temper the outlook.
Positive Factors
Free Cash Flow Strength
Sustained positive free cash flow (TTM $609M) demonstrates Snap's improving ability to convert revenue into cash. Durable cash generation reduces refinancing risk, funds product and AI investments, supports capital allocation (buybacks/strategic spend) and cushions execution while profitability is finalized.
Negative Factors
Elevated Financial Leverage
Leverage above historical norms (debt ~$4.2B vs equity ~$2.08B) constrains financial flexibility if growth or cash conversion weakens. Higher debt increases interest exposure, limits strategic optionality for M&A or capex, and raises refinancing risk during adverse market or advertising slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained positive free cash flow (TTM $609M) demonstrates Snap's improving ability to convert revenue into cash. Durable cash generation reduces refinancing risk, funds product and AI investments, supports capital allocation (buybacks/strategic spend) and cushions execution while profitability is finalized.
Read all positive factors
Snap Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySnap (SNAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.31B
Dividend YieldN/A
Average Volume (3M)53.94M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth10.26%
EPS Growth23.77%
CountryUS
Employees5,061
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.25
Shares Outstanding1,403,010,700
10 Day Avg. Volume52,928,640
30 Day Avg. Volume53,944,901
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)6.05
Price to Sales (P/S)2.33
P/FCF Ratio31.57
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda-98.12
Forecast
1Y Price Target
$7.75Price Target Upside28.53% Upside
Rating ConsensusHold
Number of Analyst Covering26
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$6.70B
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 peopl...
How the Company Makes Money
Snap primarily makes money from advertising sold across Snapchat. Its main revenue stream is advertising revenue generated by delivering paid ads to users in formats such as Snap Ads (full-screen video), Story ads, Collection and Dynamic ads for c...
Snap Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call highlights substantial progress toward the company’s strategic goals: returning user growth, double-digit total revenue growth (12% YoY), strong subscription momentum (other revenue +87% YoY), expanding adjusted gross margin (57%) and a sizable improvement in adjusted EBITDA (+$125M YoY). Product and AI-driven ad improvements, along with new inventory surfaces like Sponsored Snaps and Promoted Places, showed encouraging early traction. Key challenges include weakness among large North American advertisers, a ~12% decline in eCPMs driven by mix shift, geopolitical impacts (~$20–25M in March) and near-term restructuring charges ($95–130M) that will pressure Q2 net income. On balance, the positive operational and financial momentum and stronger cash generation outweigh the near-term headwinds and execution risks.Positive Updates
Return to User Growth
Global daily active users reached 483 million and monthly active users reached 956 million, both up 5% year-over-year, marking a return to DAU growth in Q1.
Negative Updates
Large North America Advertiser Weakness
Large advertisers in North America remained a headwind to ad revenue in Q1, with recovery described as early and uneven despite improving measurement and some better upfront commitments (+~10% YoY).
Read all updates
Q1-2026 Updates
Positive
Negative
Return to User Growth
Global daily active users reached 483 million and monthly active users reached 956 million, both up 5% year-over-year, marking a return to DAU growth in Q1.
Read all positive updates
Company Guidance
Snap guided Q2 revenue of $1.52 billion to $1.55 billion (assuming no contribution from Perplexity and that the Middle East operating environment remains consistent with March/April, though the geopolitical trajectory is uncertain), said infrastructure costs should grow modestly year‑over‑year in Q2 while all other cost of revenue is expected to remain roughly 16%–17% of revenue (in line with full‑year guidance), and estimated adjusted EBITDA of $175 million to $200 million; management also forecast pretax restructuring charges of $95 million to $130 million (mostly in Q2), noted a partial‑period personnel‑cost benefit in Q2 with larger operating‑expense and SBC reductions showing in Q3+, and reiterated plans to reduce annualized cost structure by more than $500 million in H2 2026 while staying on track toward full‑year margin and cost‑structure targets.Snap Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.10B | 5.93B | 5.36B | 4.61B | 4.60B | 4.12B |
| Gross Profit | 3.40B | 3.26B | 2.89B | 2.49B | 2.79B | 2.37B |
| EBITDA | -129.01M | -169.31M | -492.60M | -1.10B | -1.18B | -337.55M |
| Net Income | -409.85M | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M |
Balance Sheet | ||||||
| Total Assets | 7.50B | 7.68B | 7.94B | 7.97B | 8.03B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.82B | 2.94B | 3.38B | 3.54B | 3.94B | 3.69B |
| Total Debt | 4.20B | 4.70B | 4.24B | 4.34B | 4.18B | 2.63B |
| Total Liabilities | 5.42B | 5.40B | 5.49B | 5.55B | 5.45B | 3.75B |
| Stockholders Equity | 2.08B | 2.28B | 2.45B | 2.41B | 2.58B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 608.80M | 437.19M | 218.65M | 34.79M | 55.31M | 223.00M |
| Operating Cash Flow | 831.34M | 656.17M | 413.48M | 246.52M | 184.61M | 292.88M |
| Investing Cash Flow | 227.63M | 173.12M | -717.08M | 570.95M | -1.06B | 90.23M |
| Financing Cash Flow | -911.71M | -848.13M | -428.62M | -458.79M | 306.71M | 1.07B |
Snap Technical Analysis
Negative
6.03
Price Trends
5.27
Positive
5.88
Negative
6.82
Negative
Market Momentum
0.03
Positive
49.27
Neutral
41.97
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 6.03 is above the 20-day moving average (MA) of 5.83, above the 50-day MA of 5.27, and below the 200-day MA of 6.82, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 41.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNAP.
Snap Risk Analysis
Snap disclosed 65 risk factors in its most recent earnings report. Snap reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Snap Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $4.69T | 13.90 | 38.98% | 0.26% | 17.77% | 46.22% | |
79 Outperform | $28.24B | 31.61 | 25.48% | ― | 70.64% | 477.34% | |
76 Outperform | $1.54T | 13.54 | 33.22% | 0.32% | 26.18% | 6.07% | |
69 Neutral | $89.19B | 29.44 | 35.34% | ― | 16.70% | 148.31% | |
67 Neutral | $10.54B | -39.66 | 7.76% | ― | 16.30% | -82.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $9.31B | -21.82 | -18.93% | ― | 10.26% | 23.77% |
* Communication Services Sector Average
SNAP
Snap
5.62
-2.66
-32.13%
META
Meta Platforms
605.06
-28.46
-4.49%
GOOGL
Alphabet Class A
388.91
220.93
131.53%
SPOT
Spotify
433.32
-209.68
-32.61%
PINS
Pinterest
18.81
-13.41
-41.62%
RDDT
Reddit Inc Class A
146.72
50.87
53.07%
Snap Corporate Events
Business Operations and StrategyExecutive/Board Changes
Snap Expands Board, Appoints Luke Wood as Director
Positive
May 20, 2026
On May 20, 2026, Snap Inc. expanded its board of directors from twelve to thirteen members and appointed Luke Wood, former President of Beats by Dr. Dre and Vice President at Apple Inc., as a new director. Wood, currently CEO of Violet St Holdings...
Executive/Board Changes
Snap Announces CFO Transition and Internal Successor Appointment
Neutral
Apr 20, 2026
On April 17, 2026, Snap announced that Chief Financial Officer Derek Andersen will leave the company for a new professional opportunity, with his last day expected to be May 8, 2026. Snap said Andersen’s departure is not related to any disag...
Business Operations and StrategyFinancial Disclosures
Snap Announces Major Workforce Restructuring to Boost Profitability
Negative
Apr 15, 2026
On April 15, 2026, Snap announced a restructuring plan to cut about 16% of its global full-time workforce, impacting roughly 1,000 employees and closing more than 300 open roles, as it seeks a faster, more efficient operating model focused on prof...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.