Snap (SNAP) stock fell 13% in after-hours trading after reporting mixed Q1 results.

From Nasdaq: 2025-05-02 00:51:00

Snap (NYSE: SNAP) reported Q1 revenue slightly above estimates at $1.36 billion but fell short on earnings at a loss of $0.08 per share. Stock dropped 13% in after-market trading due to lack of guidance and concerns over trade policies. Despite growth in subscribers and ARPU, SNAP stock has underperformed, down 19% YTD.

Snapchat’s Q1 2025 showed revenue growth to $1.36 billion, a 14% increase YoY, driven by a rise in paid subscribers to 15 million. ARPU rose to $2.96, with DAU reaching 460 million. Operating performance improved with a 8% EBITDA margin, but net loss was $0.08 per share.

SNAP stock is declining post-earnings due to missed expectations and lack of guidance. Volatility has been a trend for SNAP, unlike the stable Trefis High Quality Portfolio, which outperformed the S&P 500. Despite current undervaluation, SNAP remains less volatile than peers.

With ongoing trade uncertainties, SNAP’s future performance relative to the S&P 500 is uncertain. However, current valuation indicates SNAP is undervalued at $8 per share, with a P/S ratio of 2.4x. Comparisons with peers and industry insights are available on Trefis for better investment decisions.



Read more at Nasdaq: What’s Next For SNAP Stock?