From Nasdaq: 2025-04-09 10:20:00

Snap is introducing Sponsored AI Lenses, a new ad format powered by generative AI technology, offering personalized, engaging experiences for users. Early results show increased engagement, with potential to boost impressions by 25-45% in a day. This move aligns with Snap’s strategy to enhance brand advertising and revenue performance.

Snap’s first-quarter 2025 earnings estimate remains steady at 4 cents per share, indicating a 33.33% year-over-year growth. Revenue projections range from $1.33-$1.36 billion, with a consensus mark of $1.35 billion, reflecting a 12.82% increase. SNAP has a history of beating earnings estimates, with an average surprise of 58.57%.

Despite recent stock price declines, Snap faces tough competition from Meta Platforms, Alphabet, and Apple in the digital advertising space. Brand advertising revenue has declined due to reduced spending by large advertisers. Snap aims to improve this segment with innovative ad formats like Sponsored AI Lenses to attract major advertisers and drive revenue growth.

Snap’s long-term growth prospects remain strong, supported by investments in machine learning and ad formats like Sponsored Snaps and Snapchat+. With a Zacks Rank #2 (Buy) and Growth Score of A, Snap offers a promising investment opportunity. Its focus on innovation and user experience positions it for sustained growth in the digital advertising market.



Read more at Nasdaq: Does SNAP’s Launch of an AI Ad Format Signal a Buy for the Stock?