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Snap Inc.’s Stock Drop: Is Recovery Possible?

Jack KelloggAvatar
Written by Jack Kellogg
Updated 8/7/2025, 5:04 pm ET | 5 min

In this article Last trade Aug, 07 5:16 PM

  • SNAP-3.08%
    SNAP - NYSESnap Inc. Class A
    $7.54-0.24 (-3.08%)
    Volume:  87.45M
    Float:  1.27B
    $7.45Day Low/High$7.94

Snap Inc. stocks have been trading down by -3.08 percent due to increased market volatility and declining advertising revenues.

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  • Analysts at Rosenblatt, BofA, and Piper Sandler lowered their price targets for Snap, and the shares took a steep dive, raising concerns amongst investors.

  • Revenue expectations met projections, yet the Q3 forecasts show slower growth, leading to cautious investor sentiment.

  • Difficulties with Snap’s advertising platform updates have compounded challenges, further impacting confidence and driving stock values down.

  • Two consecutive quarters of declining daily active users in North America spotlight potential longer-term user growth issues, notably as competitors gain ground.

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Live Update At 17:03:59 EST: On Thursday, August 07, 2025 Snap Inc. stock [NYSE: SNAP] is trending down by -3.08%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Unpacking Snap Inc.’s Q2 Report and Stock Performance

As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This mindset is crucial for traders at any experience level. By focusing on capital preservation, traders can navigate the unpredictable nature of the markets and ensure long-term success. Embracing this philosophy allows traders to gain experience, learn from their mistakes, and make informed decisions without being deterred by short-term losses.

Snap Inc. recently published its earnings report, revealing revenue just as predicted but with emphasis on a steepened net loss and slowing growth. The key factor being their revenue, which stood at approximately $5.36B, indicating expanded revenue for the quarter despite challenges that lie in monetization efforts. The company faced criticism over its inability to effectively transform user growth into profit, despite increased daily active users globally. Revenue per share sat at $3.78, reflecting modest year-on-year gains but essentially underlining inherent market pressure.

Their Q3 expectations predict a paltry 9% growth rate. Industry analysts compare this unfavorably to platform behemoths such as Meta and Alphabet, hypothesizing Snap as losing market share and creative allure due to below-par ad platform performance. Comparatively, competitors leverage superior monetization strategies, claiming more formidable stakes in the advertising landscape, as Snap wrestles with infrastructure updates.

The numbers speak volumes, yet with Snap’s strategy inching towards multimedia content consolidation with Snapchat+, and fostering augmented reality tech, market shareholders wonder if fresh routes could lead them out of their profitability slump. However, financial metrics such as a -8.1% EBIT margin and ongoing quarterly losses reflect a deeper earnings concern, further mired by a high total debt ratio of 2.03. Despite an apparent gross margin of 53.8%, the company’s profitability metrics prove that expenses outweigh earnings, vastly limiting operational leverage possibilities.

Weighing the Market Influence of News Articles

The flow of pertinent news heightens the delicate tension over Snap’s future in the market. Rosenblatt’s decision to adjust Snap’s price target to $8.70 with a neutral rating echoed across the market, emphasizing caution. Diminished valuations, through reductions from multiple firms and Snap’s plummeting shares, echo broader reservations on sustainable recovery.

Experts nudged cautious optimism over Snap’s profitability prospect, propelled by their snap plus and subscription revenue growth, yet such intangible gains come dented by persisting concerns over fintech conservative guidance and missed bottom-line expectations. Several analysts remain vocal, questioning the viability of Snap’s financial vision without structurally solid revenue trajectories alongside disciplined cost management efforts.

In scrutinizing Snap’s potential user base, the marginal 3.9 current ratio does point toward healthy liquidity and receptiveness towards de-leveraging, yet continued operating expenses cuts and revenue enhancement efforts appear necessitated. Transitioning monetization strategies and affinity schemes with advertisers could eventually provide the necessary traction.

The mixed outlook is evident, tied directly to Snap’s intrinsic capability to pivot amidst rocky terrains. Achieving a lasting turnaround will, by necessity, demand a revised tactful approach, operational vigor, and renewed innovation. Restoring market attention globally will hold key, linked tightly to Snap’s ongoing adaptation and its path towards market fortitude. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This sentiment embodies the trading mindset required to navigate such uncertain times, reminding traders that patience and strategic timing are essential in leveraging any potential Snap rebounds.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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In this article (YTD Performance)


* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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