Snap's Stock Plunges to $7, Former Takeover Target at 52-Week Low
ByAinvest
Thursday, Aug 14, 2025 7:44 am ET1min read
SNAP--
The financial results revealed a revenue of $1.34 billion, marking an 8.7% increase from the previous quarter [1]. However, the net loss widened to $262.6 million, up from $248.6 million in the same period last year [1]. The EPS loss per share also deteriorated to $0.16, further from the previous quarter's $0.15 [1]. This shortfall was attributed to a glitch in the advertising platform, which has since been addressed [2].
Despite the earnings miss, Snap's core business demonstrated resilience, with daily active users reaching a new record high of 469 million [2]. The company's ad revenue has been growing steadily, with small and medium-sized businesses being the largest contributors [2]. Additionally, Snapchat+ subscribers rose by 42% to nearly 16 million, highlighting the growth potential in the subscription service [2].
Looking ahead, Snap expects third-quarter revenue to be between $1.475 billion and $1.505 billion, ahead of Wall Street estimates [2]. The company also expects adjusted EBITDA for the third quarter to be between $110 million and $135 million, higher than StreetAccount's projections [2].
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.
References:
[1] https://finance.yahoo.com/news/snap-second-quarter-2025-earnings-143002283.html
[2] https://www.ainvest.com/news/snap-q2-results-weighing-risks-rewards-15-correction-2508/
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 experienced a significant decline, reaching 52-week lows following the company's Q2 2025 earnings report. Despite revenues meeting analyst estimates, the company's earnings per share (EPS) missed expectations, leading to a 18% drop in stock price over the past week [1].The financial results revealed a revenue of $1.34 billion, marking an 8.7% increase from the previous quarter [1]. However, the net loss widened to $262.6 million, up from $248.6 million in the same period last year [1]. The EPS loss per share also deteriorated to $0.16, further from the previous quarter's $0.15 [1]. This shortfall was attributed to a glitch in the advertising platform, which has since been addressed [2].
Despite the earnings miss, Snap's core business demonstrated resilience, with daily active users reaching a new record high of 469 million [2]. The company's ad revenue has been growing steadily, with small and medium-sized businesses being the largest contributors [2]. Additionally, Snapchat+ subscribers rose by 42% to nearly 16 million, highlighting the growth potential in the subscription service [2].
Looking ahead, Snap expects third-quarter revenue to be between $1.475 billion and $1.505 billion, ahead of Wall Street estimates [2]. The company also expects adjusted EBITDA for the third quarter to be between $110 million and $135 million, higher than StreetAccount's projections [2].
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.
References:
[1] https://finance.yahoo.com/news/snap-second-quarter-2025-earnings-143002283.html
[2] https://www.ainvest.com/news/snap-q2-results-weighing-risks-rewards-15-correction-2508/
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