From Yahoo Finance: 2025-05-07 13:27:00

Snap Inc. (SNAP) has seen notable progress in Q1 2025, with total revenue reaching $1.363 billion, driven mainly by advertising. The company’s shift towards direct-response advertising has been successful, although brand-oriented revenue faced challenges. Snap also saw improvements in profitability, with a narrowing net loss and significant growth in users.

Despite strong performance, Snap’s lack of Q2 guidance led to a 13% stock drop. The company faces risks from macroeconomic uncertainties and regulatory changes, particularly in advertising from China. However, Snap’s focus on DR advertising, Snapchat+ growth, and investments in AI and AR show a solid long-term strategy. Investors should monitor short-term volatility.

Snap Inc. (SNAP) is not among the 30 Most Popular Stocks Among Hedge Funds. While 44 hedge fund portfolios held SNAP at the end of Q4, our conviction lies in other AI stocks that may offer higher returns in a shorter timeframe. For a promising AI stock trading at less than 5 times its earnings, consider alternatives. Check out our report for more information.

Read more: Snap Inc. (SNAP): A Bull Case Theory