Snap Inc.’s stock has become a battleground for Wall Street analysts following disappointing Q2 results, with price targets ranging from $7 to $16 as shares hover around $9.39. A software glitch in April’s ad auction system led to unintended deep discounts, slashing ad revenue growth to just 1% before stabilizing at 4% for the quarter—far below Q1’s 9% and initial 10% projections. While one major firm cut its target to $8.70, citing weak EBITDA, another raised its outlook to $9, citing optimism about Snapchat+ and augmented reality initiatives.
Revenue Falls Short
The company missed earnings expectations with a $0.16 per-share loss and $1.35 billion in revenue, slightly below forecasts. Daily active users grew, but average revenue per user stagnated, reflecting fierce competition from rivals. Shares plummeted 15% to $8.02, underscoring investor concerns over Snap’s ability to monetize its platform. With ad growth lagging and losses widening, the social media giant faces mounting pressure to address structural challenges in its advertising business.
