Thursday, October 16, 2025

Snap Sees Consensus Target Slammed Down To $20 Following Q2 Results

Snap Inc. (NYSE: SNAP) this morning reported its second quarter financial results. The company announced that revenues grew only 13% on a year-over-year basis to $1.11 billion, while all other underlying results deteriorated on a year-over-year basis.

The company reported an operating loss of $400.9 million, doubling the loss from last year, while net losses came in at $422 million, close to tripling the net loss it reported last year.

Adjusted EBITDA came in at $7.19 million, decreasing 94% on a year-over-year basis, and free cash flow dropped 27% to ($147.45) million.

The company also said its daily active users grew 18% year over year to 347 million users and increased in North America, Europe, and Rest of World.

Snap then announced that it would commence a $500 million stock repurchase program, saying that the goal of the program is to, “utilize the company’s strong balance sheet to offset a portion of the dilution related to the issuance of restricted stock units to employees as part of the overall compensation program designed to foster an ownership culture.”

Lastly, the company decided not to provide guidance for its third quarter financial results due to “uncertainties related to the operating environment.”

A number of analysts came out and slashed their 12-month price target on Snap, bringing the average price target down from $31 to $20 overnight. There are currently 44 analysts covering the stock; 8 have strong buy ratings, 14 have buys, 20 have hold ratings, and the last two analysts have sell ratings on the stock. The street high price target currently sits at $67.

In Canaccord Genuity Capital Markets’ note on the results, they reiterate their hold rating but slash their 12-month price target down to $16 from $20, saying that the macro environment and targeting headwinds fueled the missed results.

Canaccord notes that growth has decelerated throughout the quarter across both brand and direct response advertisers due to a number of headwinds such as privacy changes, weakening macro, and increased competition. They add that, “headwinds have worsened over recent weeks, and revenue has been flat y/y QTD.”

With the results and the management commentary, Canaccord believes that all expectations for the coming quarters have been reset.

On the results, which missed a number of Canaccord’s estimates, they say that revenue was the largest miss as it even missed even the lowered estimates. Though the company’s adjusted EBITDA of $7.2 million was above their estimate of $5.3 million.

The daily active user gains slightly beat Canaccord’s estimate by 1%, and in a pocket of hope, Snap’s short-form video saw its monthly active user base grow by 46% year over year while time spent watching grew 59% year over year.

Below you can see Canaccord’s updated estimates.


Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

BMO Issues Gold Market Primer Ahead Of Gold Forum Americas

This weekend started off the Gold Forum Americas, where BMO has many of their analysts...

Sunday, September 12, 2021, 10:04:00 AM

Canopy Growth: Canaccord Downgrades To Hold, Raises Price Target To $32

Yesterday, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported their third fiscal quarter results. They...

Wednesday, February 10, 2021, 04:12:00 PM

BMO Lowers Price Target On Equinox Gold Following Production Suspension At RDM Mine

Earlier this month Equinox Gold (TSX: EQX) revealed that they are temporarily suspending operations at...

Monday, May 30, 2022, 10:58:00 AM

Unity Software: Analysts Anticipate $216.6 Million In Q1 Revenues

Unity Software (NYSE: U) will be reporting their first-quarter financial results this evening after market...

Tuesday, May 11, 2021, 02:44:00 PM

Harvest Health: Canaccord Reiterates Price Target Following Earnings

On August 10, Harvest Health and Recreation (CSE: HARV) reported its second quarter results. The...

Thursday, August 12, 2021, 03:49:00 PM