Snap (NYSE:SNAP) Trading Down 11.3% After Earnings Miss

Snap Inc. (NYSE:SNAP)’s share price fell 11.3% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $5.30 and last traded at $5.2450. 45,436,791 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 48,151,324 shares. The stock had previously closed at $5.91.

The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.12). The business had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.70 billion. Snap had a negative return on equity of 21.61% and a negative net margin of 8.60%.Snap’s revenue was up 10.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.01 EPS.

Trending Headlines about Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Revenue growth and margin progress: Snap reported ~10% year‑over‑year revenue growth (~$1.72B) and showed improved profitability in Q4, reflecting higher ARPU, Snapchat+ growth and margin expansion. This supports the thesis that monetization is improving even as user metrics soften. Snap Inc. Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: AI as an ad lever: Management emphasized embedding AI across the ad platform to boost advertiser performance and drive more profitable growth — a strategic focus that could accelerate revenue diversification if execution succeeds. Snap Embeds AI Across Ad Platform
• Positive Sentiment: Notable analyst upgrade: Bank of America upgraded SNAP to a buy and set a $10 target, signaling some analyst conviction in a recovery and providing potential support for the stock. Benzinga Analyst Note
• Neutral Sentiment: 10‑K filed: Snap filed its Form 10‑K for the fiscal year ended Dec. 31, 2025 (audited financials available). Routine disclosure; useful for deeper due diligence but not a near‑term catalyst by itself. Snap Inc. Files Annual Report on Form 10-K
• Neutral Sentiment: Unusual options activity: Large call buying was reported around the print, indicating speculative bullish interest or hedging by sophisticated traders — worth monitoring for short‑term flow impact. MarketBeat Options Note
• Neutral Sentiment: Management shift to profitability: Company signaled a strategic pivot toward more profitable growth (reduced marketing, revenue diversification and hardware/subscriptions focus). This is a medium‑term positive but may suppress user growth while the transition happens. TechCrunch Q4 Coverage
• Negative Sentiment: User decline and lower guidance: Daily active users fell ~3M to ~474M and Q1 revenue guidance (~$1.50–1.53B) came in below Street expectations, creating concern that top‑line momentum could slow into 2026. CNBC Q4 Coverage
• Negative Sentiment: Perplexity integration delayed: Snap said its outlook excludes potential sales from the Perplexity AI integration because broader rollout terms aren’t finalized — investors were hoping for near‑term revenue from this partnership. WSJ: Perplexity Delay
• Negative Sentiment: Analyst downgrades and lower targets: Several shops cut price targets (Susquehanna, Rosenblatt, Mizuho) or maintain a negative/neutral consensus; MarketBeat shows an average “Reduce” stance — increasing selling pressure and lowering the stock’s near‑term multiple. Benzinga Analyst Notes
• Negative Sentiment: Technical stress: Coverage noted SNAP traded to record lows and flipped a key support level after the print, which can amplify downside as technical sellers and stop orders activate. Invezz: Technicals

Analysts Set New Price Targets

A number of research firms have weighed in on SNAP. Morgan Stanley upped their price target on Snap from $8.50 to $9.50 and gave the stock an “equal weight” rating in a report on Tuesday, January 13th. Susquehanna decreased their target price on shares of Snap from $9.00 to $6.50 and set a “neutral” rating for the company in a research note on Thursday. BMO Capital Markets raised their price target on shares of Snap from $12.00 to $13.00 and gave the company an “outperform” rating in a report on Thursday, November 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Snap in a report on Wednesday, January 21st. Finally, Wells Fargo & Company decreased their price objective on shares of Snap from $10.00 to $8.00 and set an “equal weight” rating for the company in a research report on Thursday. Four analysts have rated the stock with a Buy rating, twenty-three have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $8.98.

Insider Activity at Snap

In related news, CTO Robert C. Murphy sold 1,000,000 shares of the business’s stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $8.00, for a total value of $8,000,000.00. Following the completion of the sale, the chief technology officer directly owned 51,911,126 shares of the company’s stock, valued at $415,289,008. The trade was a 1.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Ajit Mohan sold 109,372 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $8.34, for a total value of $912,162.48. Following the sale, the insider owned 5,326,801 shares in the company, valued at $44,425,520.34. The trade was a 2.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,393,341 shares of company stock worth $11,169,210 over the last 90 days. Company insiders own 22.68% of the company’s stock.

Institutional Investors Weigh In On Snap

Institutional investors have recently made changes to their positions in the company. Apollon Wealth Management LLC lifted its stake in Snap by 9.2% during the second quarter. Apollon Wealth Management LLC now owns 15,934 shares of the company’s stock worth $138,000 after purchasing an additional 1,340 shares during the last quarter. Mackenzie Financial Corp raised its holdings in shares of Snap by 5.1% during the third quarter. Mackenzie Financial Corp now owns 27,638 shares of the company’s stock worth $213,000 after purchasing an additional 1,349 shares during the period. Zullo Investment Group Inc. boosted 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 buying an additional 1,365 shares during the period. WealthCollab LLC grew its position in shares of Snap by 1.2% during the 4th quarter. WealthCollab LLC now owns 115,390 shares of the company’s stock valued at $931,000 after buying an additional 1,369 shares during the last quarter. Finally, Alliancebernstein L.P. raised its stake in Snap by 0.3% during the third quarter. Alliancebernstein L.P. now owns 414,416 shares of the company’s stock worth $3,195,000 after acquiring an additional 1,396 shares during the period. 47.52% of the stock is currently owned by institutional investors.

Snap Stock Down 10.5%

The company has a debt-to-equity ratio of 1.57, a current ratio of 3.67 and a quick ratio of 3.67. The stock’s fifty day simple moving average is $7.68 and its 200-day simple moving average is $7.89. The stock has a market cap of $9.10 billion, a P/E ratio of -18.29 and a beta of 0.83.

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.