Snap (NYSE:SNAP) has fought hard to be as recognized a brand as its contemporaries at X and Meta Platforms (NASDAQ:META). While the road hasn’t always been easy, it’s kept up the fight and recently passed a major milestone in terms of paid users. Yet, that didn’t stop investors from abandoning Snap in droves and taking over 4% of Snap’s market cap with them in Thursday morning’s trading.
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Snap officially crossed the five million paid subscriber line recently, and given that Snap charges $3.99 per month to be a paid subscriber, that means about $20 million in revenue a month. Nearly a quarter-billion dollars per year floods into Snap’s coffers now, and it’s been a little over a year since Snap first rolled out Snapchat+, the paid version of Snapchat. That’s given those users access to over 20 features, including Streak restores, different text sizes, and even the latest artificial intelligence tools that Snap has to offer.
But Snap has also made headway with advertisers and non-paid users as well. The firm is currently working with several major beauty brands to put together new advertising tools. Coming soon to the platform: new Lenses focused on beauty, Bitmoji makeup drops, and an augmented reality experience called the “Beauty Bestie” system. Using such tools along with Snap’s current lineup, users can “try on” beauty products without having to actually put them on their faces.
Is Snap a Hold, Buy, or Sell?
Analysts, meanwhile, are taking a cautious view. With three Buy ratings, 18 Holds, and two Sells, it’s clear that Snap has a consensus rating of Hold. Further, with an average price target of $10.25, Snap stock offers an upside potential of 18.36%.