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SNAP Inc. Struggles Amid Financial Challenges

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 11/17/2025, 5:04 pm ET 11/17/2025, 5:04 pm ET | 6 min 6 min read
SNAP Inc. Struggles Amid Financial Challenges Thumbnail

Snap Inc.’s stocks have been trading down by -4.55 percent amid negative sentiment surrounding potential advertiser spending downturns.

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Live Update At 17:04:09 EST: On Monday, November 17, 2025 Snap Inc. stock [NYSE: SNAP] is trending down by -4.55%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recent Earnings and Financials Overview

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The last few months have not been easy for Snap Inc. The eyewear and digital platform sketched a challenging route through the landscape of both legal challenges and financial woes. Let’s dive deeper into what shaped the recent course.

Financial Performance

Looking back at the earnings, Snap reported revenue for the quarter totaling approximately $1.5B. This figure shows considerable cash flows moving through the company, yet the pains of profit remain elusive. With the gross margin hovering around 54.3%, there’s hope in the maintenance of operational cost against income.

However, the bottom line tells a tale of red ink. The profitability ratios spell hard times, with margins marked negative: EBIT margin stands at -6.6%, and the pretax profit margin at -18.6%. The loss doesn’t stop there. The net income from continuing operations racked up a downward spiral, reflecting a net loss of over $103M. Imagine a once colorful playground in summer, now a bleak arena touched by chill winds. That’s where Snap Inc. finds itself.

Staring at the broader metrics, Snap’s balance sheet reported a total asset value of approximately $7.57B. Yet, with liabilities soaring over $5.35B, equating to a total capitalization around $9.78B, the heavy weight of debt bears down like clouds before a storm.

Key Ratios and Implications

Focusing on the liquidity of Snap, the company holds a current ratio of 3.7, suggesting that it could meet its short-term obligations. However, sustaining long-term debt remains a challenge, marked by a high debt-to-equity ratio of 1.86.

The inefficiency stirs the water further with a negative return on equity at -34.38%, indicating setbacks on shareholder investments. In simpler words, SNAP seems like a ship not just caught in turbulent waves but fighting against a ceaseless tempest.

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Operational Highlights

From cash flow to investment activities, Snap’s operating cash flow stands at $146M—an optimistic note in a murky jar. However, heavy expenditure in investments and capital expenses reflected as negative cash flows in investment activities spell further financial balancing acts.

While the change in receivables showed a dip, moving from $124M, a significant reduction permeated cash momentum. That’s similar to keeping up with a treadmill that suddenly speeds up when you least expect.

Legal and Stock Challenges: A Deeper Dive

Allegations are streaming toward SNAP, creating ripples on its financial sea and sending echoes into its stock domains. The class action lawsuit with accusations of misleading investor expectations serves as a prominent thorn in their strategic plans.

New Street and Stifel’s downgrades, aligning with investor concerns over advertising revenue, magnified the pressure around Snap’s fiscal structure. These downgrades resonate loudly with the market emotions—an iceberg of concern planting its roots deeper into the ocean of investor sentiment. It’s akin to looking through muddy waters, trying to find a gem that might have sunk too deep.

Additionally, Evan Spiegel’s upcoming testimony brings legal proceedings to a theatrical unfolding. Imagine a stage spotlight piercing through obscurity, seeking truths behind screens and digital facades, potentially shaping public sentiment by proxy affecting segments in Snap stock price.

Mid-Nov alone saw the stock’s value drop steadily, peeped by financial woes and a mounting legal dossier. Shares went from high eights to settling in the low tens over several trading days, following a path etched by doubt and vigilance.

Conclusion: What Lies Ahead

SNAP finds itself in a challenging maze, tackling riddles and wrestling with both financial models and lawsuit shadows. The legal pursuits add unpredictability to the stock, exacerbating the troubled landscape for Snap.

For those eyeing trading opportunities, Snap’s current situation calls for careful navigation. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” The company might face further evaluations based on upcoming court decisions, evolving market opportunities, dividend policy reinforcements, and management efficacy.

Soon-to-be traders might best keep eyes peeled on market behavior emerging from external reports and steer clear until lighter skies appear over Snap’s horizon. It will be a journey of patience, observation, and timely decisions, not without interest and complexity, digestible even for a fifth grader.

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.

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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”