
Snap (SNAP) Stock Forecast & Price Target
Snap (SNAP) Analyst Ratings
Bulls say
Snap has demonstrated a positive financial trajectory, with third-quarter sales increasing by 9.8% year-over-year to $1.507 billion, exceeding guidance expectations. The company reported a rise in global average revenue per user (ARPU) to $3.16, marking a 2% increase year-over-year, driven by strong performance in key regions, including a notable 19% year-over-year growth in European ARPU. Additionally, the platform's user engagement has strengthened, as evidenced by an increase in monthly active users (MAUs) to 943 million, alongside a significant rise in content engagement, indicated by a 300% year-over-year growth in Spotlight views from recently posted content in the U.S.
Bears say
Snap's financial outlook reflects a concerning trend, highlighted by a year-over-year decline in Average Revenue Per User (ARPU) estimated at $2.77 for the third quarter, alongside a downward revision of expected Stock-Based Compensation (SBC) from $1.10-1.13 billion to $1.08-1.10 billion. Additionally, the forecast indicates a sequential decline of 3 million daily active users (DAUs) in the fourth quarter, driven by challenges in user engagement and competitive pressures, particularly against rivals like META's Reels and YouTube Shorts. The firm anticipates a slowdown in user growth, projecting only a 3% year-over-year increase for fiscal year 2026, significantly down from the 9% growth observed in fiscal year 2024, which raises concerns about Snap's long-term viability and competitive positioning in the market.
This aggregate rating is based on analysts' research of Snap and is not a guaranteed prediction by Public.com or investment advice.
Snap (SNAP) Analyst Forecast & Price Prediction
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