Snap(US:SNAP) Yahoo Finance·2025-12-29 16:42Core Insights - Snap Inc. is facing challenges in user growth and advertising performance, leading to a lowered price target of $8.50 from $9 by Guggenheim analyst Michael Morris, who maintains a Neutral rating on the shares [1] - The company reported 477 million daily active users (DAUs) in Q3 2025, an 8% year-over-year increase, and total revenue of $1.51 billion, a 10% rise, driven by a 5% increase in advertising revenue and a 54% jump in Other Revenue [2] - Snap's augmented reality (AR) platform remains strong, with over 350 million daily users engaging with AR lenses and a creator ecosystem of over 400,000 developers [3] User Metrics - Snap achieved 477 million DAUs in Q3 2025, marking an 8% increase year-over-year [2] - Monthly active users (MAUs) grew by 7% to 943 million [2] Financial Performance - Total revenue for Q3 2025 was $1.51 billion, a 10% increase from the previous year [2] - Advertising revenue increased by 5% to $1.32 billion, while Other Revenue surged by 54% to $190 million, primarily from the Snapchat+ subscription service [2] - The company reduced its net loss by over 30%, down to $104 million from $153 million in the previous year [2] Technological Advancements - Snap is enhancing its AR capabilities, with over 500 million users interacting with Gen AI lenses more than 6 billion times [3] - The company announced Snap OS 2.0, a software foundation for its next-generation AR Spectacles, expected to debut in 2026 [3] - Snap integrates GenAI and machine learning across its platform for interactive experiences and sophisticated ad-targeting tools [4]