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Analyzing SNAP’s Latest Market Moves

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 12/22/2025, 2:33 pm ET 12/22/2025, 2:33 pm ET | 5 min 5 min read
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Snap Inc.’s stocks have been trading up by 3.43 percent amid a significant strategic partnership announcement.

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Live Update At 14:32:42 EST: On Monday, December 22, 2025 Snap Inc. stock [NYSE: SNAP] is trending up by 3.43%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recent Earnings Report: A Quick Look

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Snap Inc. has released its third-quarter earnings report, revealing insights into its current financial health. The company’s revenue stands at about $5.36B, yet its profitability margins reflect challenges. Snap’s EBIT margin is at -6.6%, while a higher gross margin of 54.3% hints at strength in core operations despite overall losses. In terms of valuation, the current price-to-sales ratio is 2.25, indicating the firm’s stock is valued comparably to its revenues.

Delving deeper, Snap’s hefty total debt as compared to its equity, recorded at a ratio of 1.86, suggests high leverage, which is a double-edged sword. It can magnify profits, but increase financial risk, especially when the leverage ratio is 3.4. The recent strategic decisions, such as appointing a seasoned leader to the board and expanding advertising capabilities, come as the company has reported a negative operating income of approximately -$128M. Clearly, the steps taken now could significantly influence Snap’s path forward.

Financially, Snap’s operations have been a mixed bag. Although the revenue has been strong, their operating expenses are straining profitability. They’ve demonstrated a negative EBITDA of around $25M. But investors still show interest, hopeful that Snap can pivot effectively, perhaps by tapping into untapped markets or innovating its product offerings.

Insider Insights: Developments Boosting Market Sentiment

Snap Inc.’s latest developments could be potential game-changers. The board’s decision to bring Matthew McRae into the fold is interesting. His background in tech and product innovation suggests Snap is positioning itself for pioneering endeavors. Formerly, McRae’s influence helped shape Arlo Technologies’ vision, and his joining aligns with Snap’s strategy of focusing on long-term innovative growth.

More Breaking News

On a separate note, the acquisition maneuvers by Pattern Group tell their own story. By acquiring ROI Hunter, they’re ramping up the competitive edge in AI-driven ad solutions. This doesn’t just affect companies like Snap on a surface level. The strategic impact could redefine how Snap optimizes advertising on its platform, influencing revenues despite an initial stock drop of 1.6% post-news. Investors are likely weighing this context against potential advertising revenue boosts.

Market Impact: Understanding the Bigger Picture

The impact of these latest moves is multifaceted. On one hand, McRae’s inclusion is a beacon of positive change focused on innovation. Investors keen on Snapchat’s growth story may view this as bullish news, expecting a push in revenues. On the flip side, concerns linger. Stock prices did see a minor dip—alluding to the uncertainty investors feel right now. There’s a delicate balance to be struck between immediate reactions and long-term outlooks.

Snap’s stock movement has been largely reflective of micro and macro factors. While tech industry shifts and strategic board decisions lead to immediate ripples, the longer-term trends still hinge on how well those moves translate into tangible growth and profitability improvements. In this regard, adherence to fiscal discipline, improvement in key ratios, and strategic alignments will be imperative.

Wrapping Things Up

Snap’s recent changes cast a spotlight on how tech companies maneuver through challenges, aiming for a brighter horizon. As market analysts dissect these developments, the underlying sentiment draws from both hope and skepticism. Traders banking on Snap’s strategic plays could see these recent changes as stepping stones towards noteworthy market positioning. However, the company must navigate through potential risks wisely, leveraging leadership changes and technology advancements to enhance its financial footing. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This perspective underscores the importance of prudent decision-making in trading strategies.

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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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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”