Group 1: Company Performance - Snap's stock closed at $7.05, down 3.16% from the previous session, underperforming the S&P 500's gain of 0.3% [1] - The upcoming earnings disclosure is projected to show earnings of $0.06 per share, reflecting a year-over-year decline of 25%, with quarterly revenue expected to be $1.49 billion, an increase of 8.82% from the previous year [2] - For the annual period, earnings are anticipated to be $0.26 per share and revenue at $5.88 billion, indicating a decline of 10.34% in earnings and an increase of 9.68% in revenue compared to last year [3] Group 2: Analyst Estimates and Valuation - Recent modifications to analyst estimates for Snap are crucial as they reflect short-term business trends, with positive revisions indicating analysts' confidence in performance [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Snap at 3 (Hold), with a consensus EPS projection that has decreased by 1.54% in the past 30 days [6] - Snap's Forward P/E ratio stands at 28.41, which is lower than the industry average of 31.58, and its PEG ratio is 0.77 compared to the industry average of 2.34 [6][7] Group 3: Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 76, placing it in the top 31% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - The Gross Law Firm is notifying shareholders of Snap Inc. regarding a potential class action lawsuit due to misleading statements about the company's advertising revenue growth, which significantly declined during the reported period [1][3]. Summary by Sections Allegations - The complaint alleges that Snap Inc. made overwhelmingly positive statements about its advertising revenue while concealing material adverse facts. Specifically, the advertising revenue growth rate dropped from 9% in Q1 to only 1% in April 2025 [3]. Financial Impact - On August 5, 2025, Snap announced a deceleration in advertising revenue growth, attributing it to issues with its ad platform and other factors. Following this announcement, Snap's stock price fell from $9.39 per share to $7.78 per share on August 6, 2025, marking a decline of approximately 17.15% in one day [3]. Class Action Details - The class period for the lawsuit is defined as April 29, 2025, to August 5, 2025. Shareholders are encouraged to register for the class action by October 20, 2025, to participate in potential recovery [4]. Firm's Mission - The Gross Law Firm aims to protect investors' rights against deceit and fraud, ensuring companies adhere to responsible business practices. The firm seeks recovery for investors who suffered losses due to misleading statements that inflated stock prices [5].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Snap Inc. securities between April 29, 2025, and August 5, 2025, of the upcoming lead plaintiff deadline on October 20, 2025, for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Snap securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by the October 20, 2025 deadline [3]. - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [4]. Group 2: Case Background - The lawsuit alleges that Snap's management misled investors by presenting overly optimistic expectations regarding advertising revenue and growth, while downplaying significant execution errors and macroeconomic challenges [5].

Core Insights - Snapchat is experiencing a shift in user behavior, leading to a strategic change in its platform focus from traditional Friend Stories to Spotlight, a TikTok-like feed of short videos [1][2][3] - The company aims to reach 1 billion users by leveraging Spotlight, which has already attracted over 550 million monthly active users and accounts for more than 40% of total content time spent [3] - Other social media platforms, such as Instagram, are also adapting to similar trends, emphasizing private sharing and messaging over public content [4][10] Group 1: Snapchat's Strategic Shift - CEO Evan Spiegel highlighted the decline in Friend Stories as a significant challenge, noting that these stories were once crucial for initiating conversations among users [1] - The transition to Spotlight is seen as essential, with plans to make sharing Spotlight content more seamless within the app [2][8] - The company is adjusting its ranking systems to prioritize sharing and conversations, alongside developing new features like status updates to enhance user engagement [8][9] Group 2: Industry Trends - Instagram is also witnessing a shift towards private content sharing, with its head, Adam Mosseri, indicating a focus on enhancing messaging features [4] - Recent updates on Instagram include a repost feature and an expanded "friends tab" to facilitate easier interaction among users [10] - Both Snapchat and Instagram are recognizing the need to adapt their products to align with changing user behaviors, focusing on shareable content and social interactions [8][10]

Core Viewpoint - The Dutch consumer rights watchdog ACM has initiated an investigation into Snapchat for potential failures in protecting minors from illegal vape sellers [1] Group 1 - The investigation focuses on Snapchat's responsibility in safeguarding young users from accessing illegal products [1]

Core Insights - Snap is restructuring into small "startup squads" of 10 to 15 people to enhance competitiveness against larger rivals [1] - The company is facing challenges with advertising revenue growth stagnating at 4% in Q2 and a 2% decline in North American daily active users to 98 million [1] Revenue and Growth Opportunities - Snapchat+ subscriptions are generating over $700 million in annual recurring revenue from more than 15 million paying subscribers, marking it as one of Snap's fastest-growing revenue streams [2] - Snap is investing in AR glasses, referred to as Specs, which are envisioned to replace smartphones, indicating a significant shift towards human-centered computing [2] Market Valuation and Stock Performance - The current stock price reflects skepticism, but there is potential for "startup-style return" at Snap's valuation of approximately $12 billion, which is a 90% decrease from its peak market cap of $116 billion in September 2021 [2]

Group 1 - A class action has been filed against Snap Inc. on behalf of investors who acquired its securities between April 29, 2025, and August 5, 2025 [1][2] - The allegations state that Snap misled investors about its advertising revenue and growth prospects, creating a false impression of reliable information while downplaying macroeconomic instability [2] - On August 5, 2025, Snap reported a slowdown in advertising revenue growth, attributing it to issues with its ad platform and other factors, leading to a stock price decline of over 17% from $9.39 to $7.78 per share [3]

Core Viewpoint - A class action securities lawsuit has been filed against Snap Inc. for alleged securities fraud affecting investors between April 29, 2025, and August 5, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Snap provided misleading statements about its advertising revenue growth, which fell from 9% in Q1 to only 1% in April 2025 due to execution failures [2]. - On August 5, 2025, Snap reported a slowdown in advertising revenue growth, attributing it to issues with its ad platform and other factors, leading to a significant stock price drop from $9.39 to $7.78, a decline of approximately 17.15% in one day [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until October 20, 2025, to request appointment as lead plaintiff, although participation does not require this role [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees [3]. Group 3: Firm Background - Levi & Korsinsky has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4].

Group 1 - A class action lawsuit has been filed against Snap, Inc. concerning allegations of securities fraud and unlawful business practices by the company and its officers [2][4] - Investors who purchased Snap securities during the Class Period have until October 20, 2025, to request appointment as Lead Plaintiff [2] - Snap reported a deceleration in advertising revenue growth in its Q2 2025 financial results, attributing the slowdown to issues with its ad platform, the timing of Ramadan, and minor changes [4] Group 2 - Following the announcement of the financial results, Snap's stock price fell by $1.61 per share, or 17.15%, closing at $7.78 per share on August 6, 2025 [4]

Core Viewpoint - A class action securities lawsuit has been filed against Snap Inc. for alleged securities fraud affecting investors between April 29, 2025, and August 5, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Snap provided misleading positive statements while concealing adverse facts about its advertising revenue growth, which dropped from 9% in Q1 to only 1% in April 2025 [2] - On August 5, 2025, Snap reported a slowdown in advertising revenue growth, attributing it to issues with its ad platform and other factors, leading to a significant stock price decline from $9.39 to $7.78, a drop of approximately 17.15% in one day [2] Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until October 20, 2025, to request appointment as lead plaintiff, although participation does not require this role [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions for shareholders and is recognized as one of the top securities litigation firms in the U.S. [4]