Snap (NYSE:SNAP) Stock Price Up 3.9% - Still a Buy?

Key Points

• Snap shares rose 3.9% to $5.54, though trading volume was about 90% below the stock’s average daily volume.
• Zacks raised Snap’s earnings forecasts, turning projections for fiscal 2027 and 2028 profitable, but still rates the stock “Strong Sell.” Wall Street’s broader consensus remains “Hold,” with an average price target of $7.65.
• Youth-safety litigation remains a major risk: Pennsylvania’s attorney general sued Snap over alleged practices that encourage compulsive use among minors, while Meta’s reported $18 billion settlement could lead to broader regulatory scrutiny and compliance costs across social media.

Snap Inc. (NYSE:SNAP - Get Free Report) rose 3.9% during mid-day trading on Friday . The company traded as high as $5.57 and last traded at $5.54. 4,637,078 shares changed hands during trading, a decline of 90% from the average daily volume of 47,642,164 shares. The stock had previously closed at $5.33.

Snap News Roundup

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Zacks raised its earnings forecasts across several future periods. Estimates improved for Q3 2026, Q1 and Q2 2027, Q3 and Q4 2027, FY2027, Q1 and Q2 2028, and FY2028. Notably, FY2027 was revised to a profit of $0.02 per share from a loss of $0.16, while FY2028 was raised to $0.11 from a loss of $0.07, suggesting expectations for stronger monetization and operating leverage over time. However, Zacks still rates SNAP “Strong Sell,” limiting the bullish impact. Snap analyst estimates
• Neutral Sentiment: Snap appointed Rowan Saghayroun as Head of Communications for Saudi Arabia. The hire underscores Saudi Arabia’s importance to Snap’s Middle East expansion and its efforts to build relationships with users, advertisers and regulators, but it is unlikely to materially affect near-term results. Snap Saudi communications appointment
• Negative Sentiment: Pennsylvania’s attorney general sued Snap over alleged youth-safety and engagement practices. The complaint claims Snapchat misleads parents about mature content and uses features such as Snapstreaks, infinite scroll and Friend Solar System to encourage compulsive use among minors. Potential civil penalties, marketing restrictions or design changes could increase compliance costs and threaten engagement—the foundation of Snap’s advertising model. Snap youth engagement lawsuit
• Negative Sentiment: Meta’s reported $18 billion settlement over youth-safety claims highlights broader sector risk. Although the settlement may remove a legal overhang for Meta, it could encourage additional lawsuits and tougher compliance requirements across social-media companies, including Snap. Meta settlement and social media stocks

Wall Street Analyst Weigh In

SNAP has been the subject of a number of research analyst reports. Guggenheim upped their price objective on Snap from $5.00 to $5.50 and gave the stock a "neutral" rating in a report on Tuesday, August 4th. Susquehanna reiterated a "neutral" rating on shares of Snap in a research report on Tuesday, August 4th. Barclays boosted their price objective on Snap from $15.00 to $16.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 4th. BMO Capital Markets reissued an "outperform" rating on shares of Snap in a research report on Tuesday, August 4th. Finally, UBS Group set a $6.00 price target on shares of Snap in a research note on Tuesday, August 4th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-three have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Snap presently has a consensus rating of "Hold" and an average target price of $7.65.

Snap Stock Performance

The stock's 50-day moving average is $4.89 and its 200 day moving average is $5.13. The firm has a market cap of $9.32 billion, a P/E ratio of -30.61 and a beta of 1.03. The company has a debt-to-equity ratio of 1.75, a quick ratio of 2.94 and a current ratio of 2.94.

Snap (NYSE:SNAP - Get Free Report) last issued its earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.02. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. Snap's revenue was up 18.9% on a year-over-year basis. During the same period last year, the business posted ($0.16) EPS. On average, research analysts predict that Snap Inc. will post -0.02 earnings per share for the current year.

Insiders Place Their Bets

In other Snap news, CTO Robert C. Murphy sold 2,000,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $5.55, for a total value of $11,100,000.00. Following the transaction, the chief technology officer directly owned 41,809,791 shares of the company's stock, valued at approximately $232,044,340.05. The trade was a 4.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ajit Mohan sold 54,608 shares of the company's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.20, for a total value of $283,961.60. Following the sale, the insider owned 4,972,097 shares of the company's stock, valued at $25,854,904.40. This trade represents a 1.09% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,426,753 shares of company stock valued at $13,323,208 over the last three months. Insiders own 22.68% of the company's stock.

Institutional Investors Weigh In On Snap

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Empowered Funds LLC grew its stake in shares of Snap by 13.3% during the 1st quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock valued at $352,000 after purchasing an additional 4,754 shares during the period. Prudential Financial Inc. purchased a new position in shares of Snap in the 2nd quarter worth $136,000. Investment Management Corp of Ontario raised its stake in shares of Snap by 104.0% in the second quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company's stock valued at $535,000 after acquiring an additional 31,357 shares during the period. Nebula Research & Development LLC bought a new position in Snap in the 2nd quarter worth about $1,675,000. Finally, The Manufacturers Life Insurance Company boosted its position in Snap by 52.0% during the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock valued at $776,000 after purchasing an additional 30,561 shares in the last quarter. Hedge funds and other institutional investors own 47.52% of the company's stock.

Snap Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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