Snap, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Hold rating on the stock and has a $9.00 price target.
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John Blackledge has given his Hold rating due to a combination of factors surrounding Snap’s recent financial performance. The company’s third-quarter revenue showed a year-over-year increase of 9.8%, which was slightly above consensus estimates, driven by accelerating growth in direct response advertising. However, the North American advertising revenue only grew by 1% year-over-year, reflecting ongoing challenges with large advertisers, which dampened overall revenue growth despite strong performance from smaller and medium-sized businesses.
Additionally, Snap announced a partnership with Perplexity, which is expected to positively impact margins in 2026. The company’s adjusted EBITDA for the third quarter was significantly higher than expected, attributed to lower costs. Despite these positive aspects, the challenges in the North American ad market and the unchanged price target of $9 contribute to the Hold rating, suggesting that while the company is performing well in certain areas, there are still uncertainties that warrant caution.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $8.00 price target.