Bank of America Upgrades Snap (NYSE:SNAP) to “Buy”

Snap (NYSE:SNAP) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report released on Thursday. The brokerage currently has a $10.00 price target on the stock. Bank of America‘s price objective would indicate a potential upside of 68.92% from the company’s current price.

SNAP has been the subject of a number of other reports. Citigroup lifted their price objective on shares of Snap from $8.50 to $10.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 12th. Exane BNP Paribas raised Snap to a “strong sell” rating in a research report on Wednesday, January 14th. Roth Mkm increased their price target on Snap from $9.00 to $10.00 and gave the company a “neutral” rating in a report on Friday, January 30th. Rosenblatt Securities lifted their price objective on shares of Snap from $8.70 to $9.50 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Finally, BMO Capital Markets increased their target price on shares of Snap from $12.00 to $13.00 and gave the company an “outperform” rating in a research note on Thursday, November 6th. Four investment analysts have rated the stock with a Buy rating, twenty-three have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Snap presently has an average rating of “Reduce” and a consensus target price of $9.85.

Snap Stock Down 3.0%

NYSE SNAP opened at $5.92 on Thursday. The stock has a market cap of $10.18 billion, a PE ratio of -20.41 and a beta of 0.83. The company has a current ratio of 3.67, a quick ratio of 3.67 and a debt-to-equity ratio of 1.57. Snap has a 12 month low of $5.86 and a 12 month high of $11.57. The stock’s 50 day moving average is $7.68 and its 200 day moving average is $7.89.

Snap (NYSE:SNAP) last issued its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12). Snap had a negative return on equity of 21.61% and a negative net margin of 8.60%.The company had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the prior year, the company posted $0.01 EPS. Snap’s revenue was up 10.2% compared to the same quarter last year. Research analysts predict that Snap will post -0.3 EPS for the current fiscal year.

Insider Activity at Snap

In other Snap news, insider Ajit Mohan sold 20,848 shares of the company’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $7.62, for a total value of $158,861.76. Following the transaction, the insider directly owned 5,277,816 shares in the company, valued at $40,216,957.92. This represents a 0.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Michael J. O’sullivan sold 70,882 shares of Snap stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $8.34, for a total transaction of $591,155.88. Following the sale, the general counsel directly owned 1,854,982 shares of the company’s stock, valued at $15,470,549.88. This represents a 3.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,393,341 shares of company stock valued at $11,169,210 over the last ninety days. Company insiders own 22.68% of the company’s stock.

Institutional Investors Weigh In On Snap

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Apollon Wealth Management LLC increased its stake in shares of Snap by 9.2% during the second quarter. Apollon Wealth Management LLC now owns 15,934 shares of the company’s stock valued at $138,000 after buying an additional 1,340 shares during the period. Mackenzie Financial Corp increased its position in Snap by 5.1% during the 3rd quarter. Mackenzie Financial Corp now owns 27,638 shares of the company’s stock valued at $213,000 after purchasing an additional 1,349 shares during the period. Zullo Investment Group Inc. raised its holdings in shares of Snap by 12.8% in the 2nd quarter. Zullo Investment Group Inc. now owns 12,040 shares of the company’s stock valued at $105,000 after purchasing an additional 1,365 shares in the last quarter. WealthCollab LLC lifted its position in shares of Snap by 1.2% in the 4th quarter. WealthCollab LLC now owns 115,390 shares of the company’s stock worth $931,000 after purchasing an additional 1,369 shares during the period. Finally, Alliancebernstein L.P. boosted its stake in shares of Snap by 0.3% during the third quarter. Alliancebernstein L.P. now owns 414,416 shares of the company’s stock valued at $3,195,000 after purchasing an additional 1,396 shares in the last quarter. 47.52% of the stock is owned by institutional investors.

More Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q4 revenue grew ~10% to roughly $1.7–$1.72B and the company reported a meaningful rise in net income (about $45M), signaling improved profitability and margin expansion after a strategic shift toward “profitable growth.” Snap Inc. Announces Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Some outlets reported Q4 EPS that topped estimates, which supports a narrative that cost discipline and revenue diversification are starting to show in the P&L. This helped lift sentiment into and after the print. Snap (SNAP) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Unusual options activity — large buy volume in call options — indicates some traders are positioning for upside, which can amplify intraday moves. MarketBeat Options Activity
• Neutral Sentiment: Management emphasizes a strategic pivot: diversifying revenue beyond ads (subscriptions, eventual hardware/Specs) and cutting marketing to focus on profitable growth. This should support margins long term but adds execution risk near term. As it preps Specs for the masses, Snap’s Q4 shows revenue growth but fewer daily users
• Negative Sentiment: Daily active users fell by ~3M to ~474M in Q4, which weakens the growth story and raises advertiser concerns about engagement and long‑term ad monetization. Snap Q4 Users Dip As It Trims Marketing To Focus On Profit, Shares Rise
• Negative Sentiment: Q1 revenue guidance ($1.50B–$1.53B) came in below the prior Street estimate (~$1.55B), which introduces near‑term downside risk for revenue expectations and prompted some selling pressure. Snap shares rise on fourth-quarter earnings that beat on sales
• Negative Sentiment: Snap said its outlook excludes potential sales from its integration with Perplexity because a broader rollout hasn’t been agreed, delaying expected upside from that AI partnership. Snap Sales Rise But Perplexity Deal Is Delayed
• Negative Sentiment: Conflicting headlines on EPS (some reports say an earnings beat, others show a miss) likely increased intraday volatility and investor uncertainty; this mixed messaging can amplify swings as traders digest the metrics. Snap (SNAP) Reports Q4 Earnings: What Key Metrics Have to Say

About Snap

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.