Snap Shares Slide to 134th in Trading Volume as Social Media Giants Intensify Pressure

Snap (SNAP) fell 1.09% on Sept. 3, 2025, with a trading volume of $0.67 billion, ranking 134th in market activity. The stock faces renewed scrutiny amid evolving dynamics in the social media sector.

Analysts highlighted slowing user growth as a critical concern. Guggenheim’s data revealed global audience expansion of 2.3% in Q3, down from 3.9% in Q2, with North America showing a 1.5% annual decline in reach. This trend intensified pressure on the stock following earnings reports that, while meeting revenue forecasts, failed to address persistent competitive threats from Meta’s Facebook and Instagram, Alphabet’s Google and YouTube, and TikTok. UBS, Piper Sandler, and Guggenheim downgraded price targets post-earnings, reflecting cautious sentiment.

Despite 9% year-over-year growth in daily active users to 469 million, structural challenges persist. North America’s stagnant user base and weaker revenue per user (ARPU) growth—driven by Apple’s iOS data restrictions and trade policy uncertainties—have dampened investor confidence. Snap’s Q2 net loss of $0.16 per share aligned with expectations, but analysts noted that margin improvements remain constrained by infrastructure costs and macroeconomic headwinds.

Backtesting data underscores mixed performance. From Q1 2024 to Q1 2025, DAU growth held steady at 9% annually, while ARPU growth decelerated from 10% to 5%. Revenue growth averaged 14% in Q1 2025, with adjusted EBITDA margin at 8%. Operating margins improved to -14% in Q1 2025 from -28% in Q1 2024, reflecting cost efficiencies and higher-margin subscriptions. However, analysts project 9% revenue growth for 2025, with EBITDA expansion expected in 2026 as overseas monetization and automation efforts scale.