Snap (NYSE:SNAP) Sets New 12-Month Low – Time to Sell?

Snap Inc. (NYSE:SNAP)’s share price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $6.79 and last traded at $6.83, with a volume of 10860229 shares trading hands. The stock had previously closed at $6.93.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Revenue beat and profit improvement — Snap reported Q4 revenue of $1.72B (above Street estimates) and net income surged to $45.2M as the company trimmed marketing to focus on profitable growth, a combination investors often reward. Snap shares rise on fourth-quarter earnings that beat on sales
• Neutral Sentiment: Unusual options activity — heavy call buying (222,358 contracts, ~55% above average) suggests speculative or directional interest from options traders, which can amplify intraday moves but is not a fundamental signal by itself. Options Volume Report
• Negative Sentiment: EPS missed expectations — Snap reported $0.03 EPS versus consensus $0.15, a notable shortfall that undermines the revenue beat and can pressure the stock. Snap quarterly earnings details
• Negative Sentiment: Below-consensus Q1 guide — management guided Q1 revenue to $1.50B–$1.53B, under analyst estimates, creating near-term downside risk for quarters ahead. Snap shares rise on fourth-quarter earnings that beat on sales
• Negative Sentiment: Daily active users fell — DAUs declined by ~3M to 474M in Q4 as Snap cut marketing to prioritize profitable growth, a trend that could limit long-term monetization upside if it persists. Snap Q4 Users Dip As It Trims Marketing To Focus On Profit, Shares Rise
• Negative Sentiment: Perplexity integration delayed from outlook — Snap excluded potential sales from its Perplexity AI integration because a broader rollout path isn’t finalized, removing a near-term revenue upside from guidance. Snap Sales Rise But Perplexity Deal Is Delayed

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on SNAP. Guggenheim cut their price objective on shares of Snap from $9.00 to $8.50 and set a “neutral” rating on the stock in a research report on Friday, December 19th. Cantor Fitzgerald boosted their price objective on Snap from $7.00 to $9.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Wells Fargo & Company upped their target price on Snap from $8.00 to $10.00 and gave the stock an “equal weight” rating in a research report on Thursday, November 6th. Stifel Nicolaus set a $7.00 price target on shares of Snap in a research note on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Snap in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, twenty-five have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, Snap presently has an average rating of “Reduce” and a consensus target price of $9.83.

Snap Stock Performance

The company has a 50-day moving average price of $7.71 and a two-hundred day moving average price of $7.90. The company has a market capitalization of $10.18 billion, a PE ratio of -20.41 and a beta of 0.83. The company has a quick ratio of 3.67, a current ratio of 3.67 and a debt-to-equity ratio of 1.57.

Snap (NYSE:SNAP) last announced 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). The business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.70 billion. Snap had a negative return on equity of 21.61% and a negative net margin of 8.60%. Analysts predict that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Derek Andersen sold 23,715 shares of the firm’s stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $7.83, for a total value of $185,688.45. Following the transaction, the chief financial officer owned 2,972,051 shares in the company, valued at approximately $23,271,159.33. This trade represents a 0.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Ajit Mohan sold 20,848 shares of the firm’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $7.62, for a total value of $158,861.76. Following the completion of the sale, the insider directly owned 5,277,816 shares in the company, valued at $40,216,957.92. The trade was a 0.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,393,341 shares of company stock worth $11,169,210.

Institutional Trading of Snap

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Snap by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock worth $817,100,000 after buying an additional 641,271 shares in the last quarter. Capital World Investors boosted its holdings in shares of Snap by 1.5% during the 3rd quarter. Capital World Investors now owns 87,272,463 shares of the company’s stock valued at $672,896,000 after acquiring an additional 1,316,448 shares during the last quarter. Capital International Investors grew its stake in shares of Snap by 0.3% in the third quarter. Capital International Investors now owns 37,780,205 shares of the company’s stock worth $291,285,000 after acquiring an additional 95,989 shares during the period. Alyeska Investment Group L.P. bought a new stake in shares of Snap in the third quarter worth approximately $176,697,000. Finally, Voloridge Investment Management LLC lifted its position in Snap by 53.3% during the third quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company’s stock valued at $79,420,000 after purchasing an additional 3,582,223 shares during the period. Institutional investors own 47.52% of the company’s stock.

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.