Snap Inc. Reports Q4 Earnings Beat Amid Broader Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy SNAP?
Source: Benzinga
- Earnings Beat: Snap Inc. reported quarterly earnings of three cents per share, surpassing analyst expectations of a three-cent loss, with quarterly revenue reaching $1.72 billion, exceeding the consensus estimate of $1.702 billion by 0.84%, reflecting a 10.21% year-over-year increase.
- User Metrics Decline: Despite the revenue beat, daily active users (DAU) fell to 474,000 in Q4 from 477,000 in Q3, although the company achieved 946 million global monthly active users (MAU), marking a 6% year-over-year increase.
- Technical Analysis Shows Pressure: The stock is currently trading 29.1% below its 20-day simple moving average (SMA) and 32.4% below its 100-day SMA, indicating significant bearish pressure, with shares down 49.62% over the past 12 months.
- Analyst Ratings and Target Downgrades: The stock carries a Hold rating with an average price target of $10.01, while recent downgrades from Evercore ISI, Wells Fargo, and Cantor Fitzgerald on February 5 lowered targets to $9.00, $8.00, and $7.00, respectively.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SNAP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNAP is 9.57 USD with a low forecast of 7.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 5.120
Low
7.00
Averages
9.57
High
13.00
Current: 5.120
Low
7.00
Averages
9.57
High
13.00
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Snap Inc. Reports Q4 Earnings Beat Amid Broader Market Decline
- Earnings Beat: Snap Inc. reported quarterly earnings of three cents per share, surpassing analyst expectations of a three-cent loss, with quarterly revenue reaching $1.72 billion, exceeding the consensus estimate of $1.702 billion by 0.84%, reflecting a 10.21% year-over-year increase.
- User Metrics Decline: Despite the revenue beat, daily active users (DAU) fell to 474,000 in Q4 from 477,000 in Q3, although the company achieved 946 million global monthly active users (MAU), marking a 6% year-over-year increase.
- Technical Analysis Shows Pressure: The stock is currently trading 29.1% below its 20-day simple moving average (SMA) and 32.4% below its 100-day SMA, indicating significant bearish pressure, with shares down 49.62% over the past 12 months.
- Analyst Ratings and Target Downgrades: The stock carries a Hold rating with an average price target of $10.01, while recent downgrades from Evercore ISI, Wells Fargo, and Cantor Fitzgerald on February 5 lowered targets to $9.00, $8.00, and $7.00, respectively.
See More
Federal Judge Orders Elon Musk to Testify in USAID Case
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
Snap Inc. Reports Q4 Earnings Beat Amid Broader Market Decline
- Earnings Beat: Snap Inc. reported quarterly earnings of three cents per share, surpassing analyst expectations of a three-cent loss, with quarterly revenue reaching $1.72 billion, exceeding the consensus estimate of $1.702 billion by 0.84%, reflecting a 10.21% year-over-year increase.
- User Metrics Decline: Despite the revenue beat, daily active users (DAU) fell to 474,000 in Q4 from 477,000 in Q3, although the company achieved 946 million global monthly active users (MAU), marking a 6% year-over-year increase.
- Technical Analysis Shows Pressure: The stock is currently trading 29.1% below its 20-day simple moving average (SMA) and 32.4% below its 100-day SMA, indicating significant bearish pressure, with shares down 49.62% over the past 12 months.
- Analyst Ratings and Target Downgrades: The stock carries a Hold rating with an average price target of $10.01, while recent downgrades from Evercore ISI, Wells Fargo, and Cantor Fitzgerald on February 5 lowered targets to $9.00, $8.00, and $7.00, respectively.
See More
Federal Judge Orders Elon Musk to Testify in USAID Case
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
