Snap-1 Glorious Growth Stock Down 86% to Buy Hand Over Fist in 2025

Core Insights - Snap has faced challenges due to Apple's privacy changes but has recently reported strong financial results, indicating a potential turnaround for the company [2][10] - The company has implemented innovative advertising strategies that are attracting more advertisers and improving revenue growth [3][6] Financial Performance - Snap generated a record $5.3 billion in total revenue for 2024, marking a 16% increase from the previous year, the fastest growth rate since 2021 [7] - The company reported a non-GAAP profit of$ 487.1 million in 2024, a 238% increase compared to 2023, despite a GAAP loss of $697.8 million, which was a 49% reduction from the previous year's loss [10] Advertising Strategy - Snap has shifted focus to direct response ads, which encourage specific user actions, leading to better outcomes for advertisers [3] - The introduction of the 7/0 Optimization model has allowed businesses to optimize ad spending effectively, resulting in significant improvements in campaign performance [4][5] User Growth and Engagement - Snap finished 2024 with a record 453 million daily active users, continuing to grow each quarter, which enhances its attractiveness to advertisers [13] - The number of active advertisers on Snap's platform doubled in 2024, driven by tools that cater to small and mid-sized businesses [6] Subscription Revenue - The Snapchat+ subscription service reached 14 million subscribers by the end of 2024, contributing significantly to Snap's "other" revenue, which increased by 131% [9] - The subscription service has achieved an annual revenue run rate of$ 500 million [9] Valuation Metrics - Snap's current price-to-sales (P/S) ratio is 3.7, near its lowest level since going public in 2017, making it cheaper compared to rivals like Meta Platforms and Pinterest [11][12]