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Snap
(NYSE:SNAP)
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Rating:61Neutral
Price Target:
$6.50
▲(9.80% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strengthening fundamentals—especially robust and improving free cash flow and better balance-sheet leverage—alongside a generally positive earnings-call outlook with guided profitability progress. Offsetting these positives are continued GAAP losses (also reflected in a negative P/E), plus only mixed technicals and some governance/event-related concerns.
Positive Factors
User scale and revenue growth
Snap’s scale provides a broad engagement base for advertising and product monetization. Nearly one billion monthly users and double-digit revenue growth can support durable ad-inventory expansion, improve platform relevance, and create operating leverage as monetization tools mature.
Negative Factors
Persistent GAAP losses
Snap remains dependent on continued revenue growth and cost discipline to reach sustainable profitability. Ongoing GAAP losses weaken earnings quality, can erode equity if prolonged, and leave less assurance that current cash generation will translate into durable net income.
Read all positive and negative factors
Positive Factors
Negative Factors
User scale and revenue growth
Snap’s scale provides a broad engagement base for advertising and product monetization. Nearly one billion monthly users and double-digit revenue growth can support durable ad-inventory expansion, improve platform relevance, and create operating leverage as monetization tools mature.
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.
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The Fly
The FlySnap (SNAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.72B
Dividend YieldN/A
Average Volume (3M)36.62M
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth12.65%
EPS Growth42.94%
CountryUS
Employees5,261
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.18
Shares Outstanding1,437,047,500
10 Day Avg. Volume42,273,631
30 Day Avg. Volume36,621,581
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 Cap0.83
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit2.46
Enterprise Value/Ebitda903.66
Forecast
1Y Price Target
$7.43Price Target Upside25.46% Upside
Rating ConsensusHold
Number of Analyst Covering27
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$6.81B
Snap Business Overview & Revenue Model
Company Description
Snap Inc. is a global technology company focused on cameras, serving users across North America, Europe, and other international regions. Its primary product is Snapchat, a powerful camera application that facilitates visual communication through ...
How the Company Makes Money
Snap primarily makes money from advertising sold on Snapchat. Its core revenue stream is digital advertising, where brands and marketers pay to place ads across Snapchat’s surfaces and formats, including Story-style placements (e.g., ads between c...
Snap Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: healthy user scale, double-digit revenue growth (19% YoY), strong margin expansion, improved profitability metrics (adjusted EBITDA up $208M) and sustained positive free cash flow. AI-driven efficiency gains and an accelerating secondary revenue stream (other revenue +85% YoY) strengthen the narrative. Headwinds include a remaining GAAP net loss, low subscription penetration (<3% MAU), higher near-term infrastructure spending, dependence on event-driven ad demand normalization, regulatory/legal uncertainty, and the long‑horizon, capital-intensive nature of Specs. On balance, the highlights—especially cash generation, margin expansion and ad/product momentum—outweigh the lowlights, supporting a positive near-to-medium-term outlook while acknowledging longer-term execution and regulatory risks.Positive Updates
User Scale and Engagement
Monthly active users reached 971 million and daily active users reached 493 million, positioning Snapchat near 1 billion MAUs and supporting monetization opportunities.
Negative Updates
Net Loss Persists
Company remains unprofitable on a GAAP basis with a net loss of $164 million in Q2, despite improvement versus prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
User Scale and Engagement
Monthly active users reached 971 million and daily active users reached 493 million, positioning Snapchat near 1 billion MAUs and supporting monetization opportunities.
Read all positive updates
Company Guidance
Snap guided Q3 revenue of $1.70–$1.74 billion and Q3 adjusted EBITDA of $300–$350 million, noting infrastructure costs will grow modestly in Q3 and full-year infrastructure is now expected at $1.65–$1.70 billion (up from $1.60–$1.65b), with all other cost of revenue (ex‑infrastructure) at 16–17% of revenue. They reiterated full‑year adjusted operating expenses of ~ $2.75 billion and stock‑based compensation of ~ $1.05 billion, said personnel savings from the recent restructuring should show up in Q3+, and confirmed Specs investment is being paced within the existing opex outlook. For context, Q2 operating cash flow was $176 million and free cash flow $121 million (TTM OCF $919 million, FCF $706 million), Snap ended Q2 with ~$2.7 billion cash and marketable securities, has generated positive FCF for eight consecutive quarters, limited fully diluted share count growth to ~2% over five years while repaying >$2 billion of convertibles plus $47 million due Aug‑2026, and expects to complete the current repurchase in Q4 then launch a multiyear, FCF‑funded dilution management program beginning in 2027; management said free cash flow per share is now the primary financial objective and reiterated expectations for gross margin and adjusted EBITDA margin expansion with sustained positive net income beginning in 2027.Snap Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
62
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.35B | 5.93B | 5.36B | 4.61B | 4.60B | 4.12B |
| Gross Profit | 3.64B | 3.26B | 2.89B | 2.49B | 2.79B | 2.37B |
| EBITDA | 9.91M | -165.50M | -492.60M | -1.10B | -1.18B | -337.55M |
| Net Income | -311.24M | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M |
Balance Sheet | ||||||
| Total Assets | 7.47B | 7.68B | 7.94B | 7.97B | 8.03B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.66B | 2.94B | 3.38B | 3.54B | 3.94B | 3.69B |
| Total Debt | 844.30M | 4.70B | 4.24B | 4.34B | 4.18B | 2.63B |
| Total Liabilities | 5.54B | 5.40B | 5.49B | 5.55B | 5.45B | 3.75B |
| Stockholders Equity | 1.93B | 2.28B | 2.45B | 2.41B | 2.58B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 705.54M | 437.19M | 218.65M | 34.79M | 55.31M | 223.00M |
| Operating Cash Flow | 919.06M | 656.17M | 413.48M | 246.52M | 184.61M | 292.88M |
| Investing Cash Flow | -11.97M | 173.12M | -717.08M | 570.95M | -1.06B | 90.23M |
| Financing Cash Flow | -875.54M | -848.13M | -428.62M | -458.79M | 306.71M | 1.07B |
Snap Technical Analysis
Positive
5.92
Price Trends
5.69
Positive
5.31
Positive
5.50
Positive
Market Momentum
0.22
Negative
59.62
Neutral
48.64
Neutral
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 5.92 is below the 20-day moving average (MA) of 5.99, above the 50-day MA of 5.69, and above the 200-day MA of 5.50, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.64T | 21.64 | 30.27% | 0.33% | 27.53% | 28.01% | |
76 Outperform | $27.75B | 31.57 | 29.02% | ― | 66.59% | 285.68% | |
67 Neutral | $5.67B | 24.71 | 9.84% | ― | 10.34% | 620.66% | |
67 Neutral | $12.64B | 63.77 | 6.50% | ― | 16.64% | -87.65% | |
66 Neutral | $1.54B | 4.67 | 8.15% | 9.84% | 1.59% | -14.96% | |
61 Neutral | $10.72B | -34.34 | -14.61% | ― | 12.65% | 42.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
SNAP
Snap
6.34
-1.57
-19.85%
META
Meta Platforms
642.62
-105.66
-14.12%
WB
Weibo
6.20
-4.59
-42.52%
BILI
Bilibili
13.48
-16.50
-55.04%
PINS
Pinterest
22.32
-12.92
-36.66%
RDDT
Reddit Inc Class A
144.25
-74.99
-34.20%
Snap Corporate Events
Business Operations and StrategyExecutive/Board Changes
Snap announces upcoming change in business leadership
Neutral
Sep 8, 2026
Snap disclosed that Chief Business Officer Ajit Mohan informed the company on September 3, 2026, of his decision to leave to pursue other opportunities, with his last day expected to be December 31, 2026. The departure of the senior executive, whi...
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.