Snap stock plummeted over 18% after missing Wall Street estimates in Q2 earnings. Revenue grew 4% to $1.17 billion, falling short of analysts’ expectations. An issue with the ad platform caused reduced prices. Although daily active users exceeded estimates, North American users fell slightly short.

Despite heightened expectations, Snap has struggled, with shares down 29% in 2025. Meta and Reddit have outperformed, up 31% and 26% respectively. Snap CEO Evan Spiegel is working to revitalize the ad business. Analysts remain cautious on Snap’s ability to grow its direct response business.

Snap’s outlook for Q3 surpassed expectations, with projected revenue between $1.48 billion and $1.51 billion. Adjusted EBITDA for the quarter is expected to be $117.5 million at the midpoint, higher than the $116.1 million forecasted. Wall Street analysts are cautiously optimistic about Snap’s performance in the upcoming quarter.

Read more at Yahoo Finance: Snap stock plummets as ad platform glitch weighs on Q2 revenue, earnings