Snap shares have fallen 22% in a year due to tough competition, but company focusing on AR

From Nasdaq: 2025-03-19 10:37:00

Snap shares have declined by 22.1% in the past year, lagging behind the Computer and Technology sector’s growth of 6.8%. Tough competition from Meta Platforms’ Facebook and Apple has impacted Snap, with Facebook successfully mimicking Snapchat features. Despite this, Snap is focusing on AR innovation, introducing new features like Leaderboards and AR keyboard to drive user engagement and monetization.

In the first quarter of 2025, Snap is expected to earn 4 cents per share, showing a 33.33% year-over-year growth. Revenue estimates range from $1.33-$1.36 billion, with a consensus of $1.35 billion, marking a 12.82% increase. Snap has beaten earnings estimates in three of the last four quarters, with an average surprise of 58.57%.

Despite challenges like slow revenue growth and competition, Snap’s long-term outlook is positive due to its AR investments. The company’s focus on small and medium-sized advertisers has been beneficial, and strategic acquisitions have enhanced its performance. With a Zacks Rank #3 (Hold), investors may consider waiting for a better entry point in 2025 for Snap stock.



Read more at Nasdaq: SNAP Falls 22% in a Year: Should You Buy, Sell or Hold the Stock?