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SNAP Stock Struggles: Potential Buying Opportunity?

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 11/17/2025, 2:35 pm ET 11/17/2025, 2:35 pm ET | 4 min 4 min read
SNAP Stock Struggles: Potential Buying Opportunity? Thumbnail

Snap Inc. stocks have been trading down by -5.25 percent amid concerns over increased Adtech competition.

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Live Update At 14:34:06 EST: On Monday, November 17, 2025 Snap Inc. stock [NYSE: SNAP] is trending down by -5.25%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Snapshot of Financial Health

Trading in the volatile markets requires one to be agile and responsive. As millionaire penny stock trader and teacher Tim Sykes, says, “You must adapt to the market; the market will not adapt to you.” This emphasis on adaptation is essential for those looking to thrive in fast-paced environments, as it underscores the need for traders to stay informed and flexible in their approach. By continuously analyzing trends and adjusting strategies, traders can improve their chances of success while navigating the ever-changing landscape of the market.

Snap Inc. recently revealed its Q3 earnings, indicating continuing challenges. Revenue sat at $1.506B with total expenses surpassing revenues at $1.635B, resulting in a net loss. The reported gross profit was around $832M, but net income dropped significantly, demonstrating ongoing struggles to achieve profitability.

Operating losses persisted, underlining their challenges in controlling costs. The cash flow statement showed a net operating cash inflow of about $146M, hinting at liquidity management amid stretching expenditures like capital spending and net investment outflows. Meanwhile, key ratios highlighted with Snap’s profitability metrics reflected negatives—EBITDA and margins in the red, indicating inefficiency in converting sales into profits. Debt management remains critical, with a quick ratio of 3.5 serving as a cushion against short-term liabilities.

Current Market Challenges and Indicators

The financial market environment is all rind Snap with multiple class action lawsuits concerning allegations of misinformation about its advertising growth. Directed suspicions of revenue misguidance have invited investigations, raising questions about transparency, and impacting investor trust. These events are correlated with price drops observed after quarterly releases.

The insider stake reduction by Robert C. Murphy serves as another critical point. When co-founders sell significant portions of their company stock, it often sparks investor apprehension, prompting assessments of future company value and control positions.

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Technical hiccups have also plagued Snap, with recent AWS outages exacerbating service interruptions. Such technical dependencies affect operation reliability and user satisfaction—factors imperative in digital communications.

Looking Ahead

The sentiment around Snap suggests an environment of skepticism but also potential positioning past hurdles. The recent downgrades and price target adjustments reflect caution given uncertain macroeconomic environments weighing on advertising revenues. Demand dynamics paired with industry shifts require strategic adaptation.

Despite these challenges, any plans to rectify these hurdles could foster market confidence. Stakeholders await clarity on legal proceedings, improved financial stewardship, or innovation to buoy morale and fortify market stance.

Conclusion

While negative trader sentiment prevails due to strategic and operational obstacles, opportunities lie in potential corrective measures. The coming months are critical as Snap maneuvers through legal predicaments, considers revenue streams, and seeks assurance around user base growth and app stability. 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.” Moving forward, adaptability will be pivotal in realigning market sentiments, stabilizing prices, and restoring trader faith.

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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* 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”