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Snap shares drop despite profitable quarter; analysts see 58% upside amid growth bets.

Analyst Insights
09 Apr 2026
24/7 Wall Street
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Neutral
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Snap Inc reported its first profitable quarter in Q4 2025 but saw its stock drop 13.37% due to weaker-than-expected Q1 2026 revenue guidance and a decline in North American daily active users, which heavily impacts ad revenue. Despite a 40.52% year-to-date stock decline, analysts maintain a $7.87 average price target, implying 58% upside, based on growth potential from its Perplexity AI partnership, Snapchat+ subscriptions, and upcoming Specs AR glasses launch. The stock remains a cautious 'show-me' story, with key catalysts yet to materialize and risks from ad platform issues and user declines in its most valuable market.

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