Snap's Stock Plunges to $7, Former Takeover Target at 52-Week Low

Snap Inc. shares have plummeted to 52-week lows after Q2 earnings missed expectations on earnings, despite in-line revenues. The social media platform has struggled, lagging behind its peers. Despite this, the company has potential as a former takeover target with shares decimated from $80 to $7.

Snap Inc. (SNAP) shares have plummeted to 52-week lows following the company's Q2 2025 earnings report, which missed expectations on earnings despite in-line revenues. The social media platform has struggled to keep pace with its peers, but its unique features and younger user demographic make it an attractive acquisition candidate.

On August 5, 2025, Snap reported a 9% year-over-year (YoY) increase in sales, reaching $1.34 billion, which met Wall Street estimates [1]. However, the company's global average revenue per user (ARPU) came in at $2.87, slightly below the expected $2.90, indicating a miss on this key metric. The company attributed the ARPU shortfall to a glitch in its advertising platform, which has since been addressed [1].

Despite the earnings miss, Snap's core business showed resilience, with daily active users reaching a new record high of 469 million [1]. The company's ad revenue has been growing steadily, with small and medium-sized businesses being the largest contributors [1]. Snap's focus on augmented reality (AR) and e-commerce could be key drivers of future growth, as it continues to innovate and expand its offerings.

Looking ahead, Snap expects third-quarter revenue to be between $1.475 billion and $1.505 billion, ahead of Wall Street estimates [1]. The company also expects adjusted EBITDA for the third quarter to be between $110 million and $135 million, higher than StreetAccount's projections [1]. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30, highlighting the growth potential in the subscription service [1].

While Snap faces tough competition from platforms like TikTok and Meta, its unique features and user engagement make it a compelling investment opportunity. As the company addresses its ad platform glitch and continues to grow its user base, Snap could be poised for a rebound.

Snap shares have traded for around $80 back in 2021, and with the recent post-earnings plunge, it now trades in the $7 range. The company has reportedly been a takeover target by a number of much larger companies, making it an attractive acquisition candidate. Despite the recent earnings miss, Snap's unique platform and younger user demographic continue to make it an attractive investment opportunity.

References:
[1] https://www.cnbc.com/2025/08/05/snap-q2-earnings-report-2025.html
[2] https://www.shacknews.com/article/145397/snap-shares-down-q2-2025
[3] https://www.reuters.com/business/snaps-revenue-growth-slowest-over-year-competition-ad-platform-glitch-hurt-aug-5-2025-08-05/
[4] https://finance.yahoo.com/news/snap-shares-tumble-investor-concerns-204725665.html
[5] https://ca.finance.yahoo.com/news/snap-q2-2025-deep-dive-025643788.html
[6] https://finance.yahoo.com/news/snap-second-quarter-2025-earnings-143002283.html
[7] https://seekingalpha.com/article/4812045-snap-stock-high-risk-high-reward-investment
[8] https://seekingalpha.com/article/4813267-snap-im-buying-this-former-takeover-target-with-shares-decimated-from-80-to-just-7