Snapchat (NYSE:SNAP) Stock Forecast: Undervalued at $7 as AR, Subscriptions Expand

Snap Inc. (NYSE:SNAP) Battles Margin Pressure, Eyes Turnaround With AI, AR, and Subscriptions Shares of Snap Inc. (NYSE:SNAP) have been volatile through August after a brutal post-earnings selloff drove the stock down toward $7, a level tested multiple times this year. The 26% monthly decline followed disappointing Q2 FY2025 results, where revenue growth slipped to 8.7% YoY and non-GAAP EPS came in short of consensus. North American daily active users fell by 1 million quarter-over-quarter, dragging sentiment further, while weak ad pricing weighed heavily on top-line performance. Despite this, global DAUs rose 8.6% YoY to 469 million, and monthly active users climbed to 932 million, confirming resilience in Snap’s younger demographic base, where 75% of U.S. 13–34-year-olds use Snapchat and open the app more than 30 times per day. Subscriptions and Spotlight Drive Engagement Despite Weak Ad Pricing Snapchat+ has quietly become a key growth lever, reaching 16 million paying users, up 64% YoY, and producing an annual run-rate revenue of nearly $700 million. Subscriptions still make up less than 15% of revenue, but the pace of growth signals diversification away from pure ad dependency. Spotlight, Snap’s TikTok competitor, now commands 48% of total viewing time, with engagement up 23%
Read More