Snap’s (SNAP) stock is down 15% after the social media company reported second-quarter financial results that disappointed Wall Street.
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The company behind the Snapchat platform announced an earnings per share (EPS) loss of $0.16, which matched the consensus forecast. Revenue in the period totaled $1.34 billion, which was slightly below the $1.35 billion expected on Wall Street. Sales were up 9% from a year earlier.
The company’s global daily active users totaled 469 million at the end of June versus 467 million that were anticipated by analysts. However, global average revenue per user of $2.87 fell short of the $2.90 that had been expected.
Snap’s net income. Source: Main Street Data
Outlook
Looking ahead, Snap said that its third-quarter revenue will come in between $1.475 billion and $1.505 billion, which is ahead of Wall Street estimates that called for $1.475 billion. The company added that third-quarter global daily active users should total 476 million, roughly in line with the 475.7 million that has been forecast on Wall Street.
The company also announced that Eric Young, Snap’s senior vice president of engineering who joined the social media company in 2023, is leaving to “pursue a new opportunity.” SNAP stock has declined 13% so far in 2025.
Is SNAP Stock a Buy?
Snap stock has a consensus Hold rating among 13 Wall Street analysts. That rating is based on two Buy and 11 Hold recommendations issued in the last three months. The average SNAP price target of $10.20 implies 12.71% upside from current levels. These ratings are likely to change after the company’s financial results.
