Snap (NYSE:SNAP) Shares Gap Down After Earnings Miss

Snap Inc. (NYSE:SNAP) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.11, but opened at $5.67. Snap shares last traded at $6.1180, with a volume of 30,299,627 shares trading hands.

The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.14). The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company’s revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.08) EPS.

Snap News Roundup

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q1 revenue grew ~12% and daily active users returned to growth, driven by markets outside North America/Europe — evidence of resilient ad demand and user momentum. Snap’s quarterly revenue rises, daily active users return to growth
• Positive Sentiment: Some outlets report Snap beat or matched top-line expectations (and internal materials/slides were released), showing underlying ad demand may be steadier than headlines imply. Snap (SNAP) Q1 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Earnings interpretation is mixed across outlets — some note an EPS miss vs. consensus while others report beats; investors should check company filings/call for the final accounting detail. Snap Q1 earnings details (MarketBeat)
• Neutral Sentiment: Large options activity (heavy call buying) suggests speculative bullish interest even amid the pullback — could amplify intraday moves.
• Negative Sentiment: Snap and Perplexity amicably ended their planned integration; the lost $400M partnership removes an expected AI monetization catalyst and was explicitly excluded from Q2 guidance. Snap says its $400M deal with Perplexity ‘amicably ended’
• Negative Sentiment: Randian Capital’s activist campaign is pressing for an asset review (Specs Inc.) and board changes; activism increases execution and governance uncertainty and could trigger strategic reviews or divestiture speculation. Randian Activist Push Puts Snap Specs Review And Valuation In Focus
• Negative Sentiment: Snap issued cautious Q2 revenue guidance that assumes no contribution from Perplexity and flagged regional geopolitical uncertainty — a near-term headwind for sentiment. Snap issues cautious guidance as Perplexity deal ends, Middle East ‘geopolitical situation’ causes uncertainty

Analyst Ratings Changes

SNAP has been the topic of a number of recent research reports. B. Riley Financial upgraded shares of Snap from a “neutral” rating to a “buy” rating and set a $10.00 target price on the stock in a research note on Thursday, February 5th. Rothschild & Co Redburn raised Snap from a “neutral” rating to a “buy” rating and set a $10.00 price target for the company in a report on Monday, April 27th. KeyCorp raised Snap from a “sector weight” rating to an “overweight” rating in a report on Monday, April 27th. Wells Fargo & Company lowered their price target on Snap from $8.00 to $6.00 and set an “equal weight” rating for the company in a report on Tuesday, April 7th. Finally, Barclays raised Snap from an “overweight” rating to an “overweight” rating in a report on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $7.93.

Insiders Place Their Bets

In other news, CAO Rebecca Morrow sold 16,499 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total value of $77,545.30. Following the completion of the sale, the chief accounting officer directly owned 466,682 shares of the company’s stock, valued at approximately $2,193,405.40. This represents a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total value of $5,360,000.00. Following the sale, the chief technology officer directly owned 49,313,775 shares of the company’s stock, valued at approximately $264,321,834. This represents a 1.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 2,565,573 shares of company stock valued at $13,329,781. 22.68% of the stock is owned by insiders.

Institutional Investors Weigh In On Snap

Several hedge funds have recently modified their holdings of SNAP. SEB Asset Management AB acquired a new stake in Snap in the first quarter valued at $310,000. Swiss National Bank raised its position in shares of Snap by 7.1% during the 1st quarter. Swiss National Bank now owns 3,160,100 shares of the company’s stock valued at $14,536,000 after acquiring an additional 209,900 shares in the last quarter. Spartan Wealth Advisory Services LLC acquired a new stake in Snap in the first quarter worth $183,000. Aire Advisors LLC acquired a new stake in Snap in the first quarter worth $53,000. Finally, Wealthfront Advisers LLC increased its holdings in shares of Snap by 372.6% during the first quarter. Wealthfront Advisers LLC now owns 372,961 shares of the company’s stock valued at $1,716,000 after purchasing an additional 294,048 shares during the period. 47.52% of the stock is owned by institutional investors and hedge funds.

Snap Trading Up 0.8%

The business has a fifty day moving average of $5.12 and a 200-day moving average of $6.59. The stock has a market capitalization of $10.41 billion, a price-to-earnings ratio of -22.61 and a beta of 1.05. The company has a debt-to-equity ratio of 1.53, a current ratio of 3.56 and a quick ratio of 3.56.

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.