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Snap Inc. Faces Difficult Times: What’s Next?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 11/20/2025, 5:04 pm ET 11/20/2025, 5:04 pm ET | 5 min 5 min read
Snap Inc. Faces Difficult Times: What’s Next? Thumbnail

Snap Inc.’s stocks have been trading down by -3.24 percent amid rising competition and decreased user engagements.

  • Stifel Nicolaus downgraded their stance on Snap Inc. to “Sell” from “Hold.” They’ve also lowered their price target to $6.50, citing declining advertising metrics and broader economic uncertainties.

  • In a significant legal move, Snap’s CEO Evan Spiegel, along with key figures from other social media giants, is to testify in a courtroom about social media’s detrimental impact on children’s mental health.

  • Bob Murphy, a key figure at Snap, offloaded 1M shares valued at over $8M, shedding light on potential internal concerns or strategic shifts.

Candlestick Chart

Live Update At 17:04:06 EST: On Thursday, November 20, 2025 Snap Inc. stock [NYSE: SNAP] is trending down by -3.24%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Snap Inc.’s Financial and Earnings Overview

As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” Trading requires a disciplined approach to maintain profitability over time. When traders let emotions interfere, they often find themselves making hasty decisions that can lead to unnecessary losses. Therefore, maintaining a consistent strategy, as Sykes suggests, is essential for success. By keeping emotions in check and sticking to a well-thought-out plan, traders can navigate the markets more effectively and achieve their goals.

Snap Inc. has been navigating turbulent waters with its financial performance showing mixed signals. Recently, the stock saw a roller-coaster movement, closing at $7.78 on Nov 25, 2025, slightly down from its peak in early November. The dips and recoveries can be attributed to a blend of external criticism, internal decisions, and broader market dynamics.

On financial records, Snap’s revenue is sitting around $5.36 billion, but profitability remains elusive with negative earnings across several key ratios. For instance, the EBIT margin stands at -6.6%, indicating challenges in cost management and operating efficiency. The organization is under significant financial strain as evident by its pretax profit margin of -18.6%.

A deep dive into the financial statements uncovers an operating revenue of over $1.5 billion for the previous quarter, yet a concerning $103 million net loss points to operational inefficiencies or foregone opportunities. Additionally, a considerable amount of Snap’s equity is tied up in debt, with a total debt-to-equity ratio of 1.86, magnifying financial vulnerabilities during periods of economic downturn.

Market Reactions and Investor Concerns

Snap Inc.’s recent news coverage paints a narrative of caution among investors. The decision by Stifel Nicolaus to downgrade Snap’s stock positions echoes the prevalent apprehensions about the company’s advertising prowess, once a staple of its bullish outlook. Negativity in advertising checks alongside uncertain global economic conditions have led to this bleak outlook.

Evan Spiegel’s upcoming courtroom testimony could potentially impact Snap’s public perception. His role in detailing social media’s implications on mental health may either bolster or jeopardize investor confidence depending on the outcomes. This scenario reflects broader tensions in the tech sector where regulatory scrutiny is intensifying.

Behind the scenes, Bob Murphy’s move to sell a significant shareholding indicates internal reverberations that might suggest anticipated headwinds or a reallocation of investment. Such trades resonate with stakeholders, sparking debates on Snap’s long-term strategic direction.

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Speculating SNAP’s Forward Trajectory

Given the metrics and emerging circumstances surrounding Snap Inc., future growth paths appear complex. With mounting legal entanglements and stock downgrades clouding the horizon, the landscape for Snap Inc. seems uncertain. The tech company’s capability to navigate these challenges could determine the vitality and resilience of its business model.

The broader market sees these trials as a potential inflection point. While short-term forecasts appear uncertain, opportunities are hidden within these challenges. Should Snap manage to reinvent its brand narrative and address fiduciary standards, a market upswing is plausible. However, without addressing core financial weaknesses and enhancing business operations, the stock could remain volatile.

In conclusion, as Snap Inc. traverses its current challenges, the pressing task lies in transforming obstacles into stepping stones. As millionaire penny stock trader and teacher Tim Sykes, says, “Cut losses quickly, let profits ride, and don’t overtrade.” This trading advice is particularly relevant as Snap Inc. faces turbulent times in the market. The steps taken to address these hurdles will undeniably shape the narrative for traders and stakeholders alike. As always, vigilance and due diligence remain paramount in navigating through economic uncertainties.

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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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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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”