Analysts Reboot Snap Stock Price Target After Strong Earnings

Snap Inc. (SNAP) has seen a significant boost in its stock price target following its third-quarter 2024 earnings report, with analysts revising their average target to $14.25. This 13.73% increase from the current stock price of $12.53 reflects analysts' optimism about the company's growth prospects and financial stability.

Snap's Q3 2024 results showcased impressive revenue growth and improved profitability. The company reported a 15% year-over-year increase in revenue to $1.37 billion, driven by a 9% rise in daily active users (DAUs) to 443 million. This growth, coupled with a 58% improvement in net loss to $153 million and a 229% surge in adjusted EBITDA to $132 million, indicates Snap's strong financial performance and commitment to cost management.


Analysts have taken note of Snap's strategic initiatives, particularly its investments in AI and AR technologies, which have contributed to its competitive edge. The company's expanded partnership with Google Cloud for generative AI experiences within My AI, along with the introduction of AI-enabled features like AI in Memories and improved problem-solving for My AI, have bolstered Snap's offerings. Additionally, the successful rollout of Snapchat+, which surpassed 9 million subscribers in Q1, and the launch of Sponsored AR Filters have further strengthened Snap's position in the market.

Snap's board authorization of a $500 million stock repurchase program signals confidence in the company's financial health and future prospects. This move, along with strong Q3 earnings, has likely influenced analysts to reboot their price targets. The repurchase program, funded by Snap's $3.2 billion in cash, cash equivalents, and marketable securities, demonstrates the company's commitment to offsetting dilution and enhancing shareholder value.


In conclusion, Snap's strong Q3 earnings, strategic partnerships, and new product launches have driven analysts to reboot their stock price targets. With a revised average target of $14.25, Snap's growth potential and financial stability have been recognized by analysts. As the company continues to expand its user base, deepen engagement, and invest in AI and AR technologies, it is poised for further growth and success in the market.