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Snap Inc Class A SNAP

Morningstar Rating
$10.73 −0.01 (0.09%)
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Company Report

Snap Earnings: Still Awaiting an Ad Spending Boost as Users and Engagement Increase

We maintain our Snap fair value estimate of $14. After a 30%-plus decline after hours in reaction to the fourth-quarter results, the shares of this no-moat firm look attractive. Despite a flat user count in North America, Snap’s total user count increased in the fourth quarter. We were pleased with improved monetization in developed markets. We still expect Snap to reach full-year profitability in 2027, driven by user growth, enhanced engagement, improved advertising solutions, and recent cost cuts.

Price vs Fair Value

SNAP is trading at a 23% discount.
Price
$10.73
Fair Value
$88.00
Uncertainty
Very High
1-Star Price
$79.60
5-Star Price
$2.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With unique multimedia app features focusing on further differentiation, Snap may take social media market share from X and Meta.

Bears

Snap may struggle to capture enough digital advertising dollars from incumbent platforms like Google, Facebook, or X in order to drive the firm to profitability.

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News

Trading Information

Previous Close Price
$10.74
Day Range
$10.7211.04
52-Week Range
$7.8617.90
Bid/Ask
$10.74 / $10.76
Market Cap
$17.71 Bil
Volume/Avg
47.0 Mil / 32.9 Mil

Key Statistics

Price/Earnings (Normalized)
12.78
Price/Sales
3.99
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.07%

Company Profile

Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe. Snap generates nearly all its revenue from advertising with 70% coming from North America. The firm is headquartered in Venice, California.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Mid Growth
Total Number of Employees
5,289

Competitors

Valuation

Metric
SNAP
PINS
META
Price/Earnings (Normalized)
12.7832.5829.50
Price/Book Value
7.777.867.91
Price/Sales
3.997.919.22
Price/Cash Flow
100.2432.6718.49
Price/Earnings
SNAP
PINS
META

Financial Strength

Metric
SNAP
PINS
META
Quick Ratio
4.2510.332.55
Current Ratio
4.3910.532.67
Interest Coverage
−65.42103.67
Quick Ratio
SNAP
PINS
META

Profitability

Metric
SNAP
PINS
META
Return on Assets (Normalized)
1.83%21.66%25.74%
Return on Equity (Normalized)
5.73%25.43%38.69%
Return on Invested Capital (Normalized)
0.42%21.33%30.60%
Return on Assets
SNAP
PINS
META
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META
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TCEHY
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DASH
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SPOT
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BIDU
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PINS
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TME
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