timothy sykes logo

Stock News

Snap Faces Legal Hurdles as Australia Imposes Social Media Restrictions

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 12/12/2025, 4:12 pm ET 12/12/2025, 4:12 pm ET | 5 min 5 min read
Snap Faces Legal Hurdles as Australia Imposes Social Media Restrictions Thumbnail

Snap Inc.’s stocks have been trading down by -4.32 percent amid mixed reactions to strategic moves and market sentiment.

Media industry expert:

Analyst sentiment – negative

Snap Inc. (SNAP) finds itself in a challenging market position, reflected by its negative profitability margins, including an EBIT margin of -6.6% and a profit margin of -8.6%. Despite generating substantial revenue of over $5.3 billion, the company’s valuation metrics such as a price-to-sales ratio of 2.36, indicate moderate expectations for growth relative to peers. Financial strength metrics reveal a solid current ratio of 3.7, but total debt to equity at 1.86 highlights considerable leverage. The net loss from continuing operations stands at -$103.5 million, and the free cash flow of $93.4 million portrays a company in need of strategic efficiency improvements.

In technical trading analysis, Snap’s stock experienced a weakening trend in the last trading week, with a consistent decline from its opening price of $8.03 to a closing price of $7.33. The downward movement marks a significant decrease, suggesting a bearish trend. Price action, combined with low support breaching at $7.70, points to weakness. Investors should note the lack of upward movement, emphasizing a selling strategy. A short position until the price approaches the next support level around $6.90 is advised, completing an action plan based on recent volume and technical patterns.

Snap’s near-future outlook is notably impacted by regulatory challenges and insider activities. The compliance with Australia’s ‘Social Media Minimum Age Act,’ along with the blocking of Snapchat in Russia, introduces potential headwinds for user growth. Meanwhile, substantial insider share offloading by co-founder Robert C. Murphy suggests reduced confidence. Compared to Media and Interactive Multi-Media benchmarks, Snap faces a challenging path to regain traction. The stock may test the $7.00 support level, with resistance projected at $8.50. Given regulatory and internal shifts, coupled with underwhelming financial performance, Snap’s outlook remains fraught with uncertainties, warranting a cautious stance.

Candlestick Chart

Weekly Update Dec 08 – Dec 12, 2025: On Friday, December 12, 2025 Snap Inc. stock [NYSE: SNAP] is trending down by -4.32%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Snap Inc. is experiencing a downward trend in stock price, dropping from $8.02 to $7.33 over recent trading sessions. The market seems to react cautiously to the impending regulatory changes and executive shifts. Snap’s profitability remains a challenge, indicated by negative margins such as -6.6% EBIT and -8.6% profit margin, and the negative return on equity at -34.38%. These figures contribute to the pressure on Snap’s financial performance. With an enterprise value of approximately $14.3B, Snap’s valuation measures present complexities with a high price-to-sales ratio of 2.36, signaling premium valuation amidst its current challenges.

More Breaking News

Recent earnings reports reveal net operating losses of over $128M in Q3 2025, with costs exceeding total revenue of $1.5B by $163M. This, coupled with ongoing high marketing expenses, greatly affects EBITDA, sitting negatively at -$25M. However, Snap has managed to secure a free cash flow of $93M, illustrating some financial agility. Despite efforts to stabilize operations, the company’s balance sheet highlights a mounting total liability of $5.3B against a total equity of $2.2B, signaling financial strain despite a substantial cash position of over $953M.

Conclusion

Snap Inc. stands at a crossroads with volatile market reactions to international regulatory adjustments and critical executive departures. Traders remain wary of the company’s ability to adapt swiftly to these changes, which may continue to reflect in its stock market performance. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” A concerted effort to stimulate revenue growth, alongside strategic compliance, will be vital for Snap’s sustained market competitiveness.

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:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

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.
Read More

* 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”