Snap (SNAP) Stock Forecast & Price Target

Snap has demonstrated a solid financial performance with a 10% year-over-year increase in sales, reaching $1,716 million, which is at the high end of the company’s guidance. The growth in subscribers, with an addition of 7 million in the last quarter to reach a total of 24 million, has significantly contributed to a 62% year-over-year increase in Other revenues, totaling $232 million. Positive trends are also evident in advertising metrics, with a 5% increase in ad sales and an impressive 89% growth in revenue from in-app optimizations, indicating strong potential for continued revenue growth.

Snap has experienced a notable decline in its user base, with global daily active users (DAUs) decreasing by 3 million to 474 million, marking the first sequential decline in Snap's model. Specifically, North American DAUs fell from approximately 98 million in the previous quarter to around 94 million, indicating a continuing trend of user attrition. Additionally, the company has significantly reduced its community growth marketing investments, which management believes will hinder user engagement and advertising revenue in the near term, contributing to a lowered fiscal year 2026 EBITDA estimate by 9%.