FMP

FMP

Snap Inc. (NYSE:SNAP) Stock Analysis: Mixed Signals Amid Financial Adjustments and Ratings

  • Evercore ISI maintains a "Mixed" grade on Snap Inc. (NYSE:SNAP), adjusting the price target from $13 to $9.
  • B. Riley upgrades Snap to a Buy rating, indicating optimism post the company's recent earnings report.
  • Snap's Q4 2025 earnings outperform expectations with a 3 cents earnings per share and a 10.2% year-over-year revenue increase.

Snap Inc. (NYSE:SNAP), the company behind the popular social media app Snapchat, competes with giants like Facebook and Instagram. Recently, Evercore ISI maintained a "Mixed" grade for Snap, advising investors to hold the stock. At the time, Snap's stock price was $5.44.

Evercore ISI also adjusted Snap's price target from $13 to $9, as reported by TheFly. This adjustment reflects a cautious outlook on Snap's future performance. Despite this, B. Riley upgraded Snap to a Buy rating from Neutral, following Snap's recent earnings report. This upgrade suggests some optimism about Snap's potential recovery.

Snap's stock price recently hit a record low of $5.9, losing a crucial support level. This decline came after the company's financial results showed a slowdown in user growth in North America. In response, Snap initiated a significant share buyback program, indicating management's confidence in a potential stock value rebound.

Snap's fourth-quarter 2025 earnings were impressive, with earnings per share of 3 cents, surpassing expectations of a 2-cent loss. Revenues increased by 10.2% year over year to $1.72 billion, exceeding the Zacks Consensus Estimate by 1%. The company's Average Revenue Per User (ARPU) rose by 5%, and Snapchat revenues surged by 62% to $232 million.

Regionally, North American revenues, which make up 60% of Snap's total revenues, grew by 6% to $1.03 billion. European revenues, accounting for 20% of the total, increased by 19% to $341 million. Despite these positive figures, Snap's stock has decreased by 8.71%, with a current trading price of $5.40. The company's market capitalization is approximately $9.1 billion, with a trading volume of 95.8 million shares.