Stifel Likes SNAP at its Current Price Levels

Core Viewpoint - Snap Inc. has been identified as one of the best beaten down growth stocks to buy now, with a recent rating upgrade from Stifel to "Hold" from "Sell" while maintaining a target price of $5.50 [1][2] User Metrics - Snap's Q4-2025 results revealed a global decline in average daily active users (DAU) by 0.6% quarter-over-quarter, dropping from 477 million to 474 million [2] - In North America, the decline was more pronounced, with DAU falling by 4.1% quarter-over-quarter, from 98 million to 94 million [2] Revenue Performance - Snap's advertising revenue for Q4 grew by 5% year-over-year to $1.48 billion, up from $1.41 billion [3] - Overall revenue increased by 10% year-over-year to $1.72 billion, compared to $1.56 billion [3] Partnership and Future Revenue - The revenue uplift from the Perplexity deal, which involves a payment of $400 million over one year, is expected to be delayed as the broader rollout plan has not been finalized [3] - Revenue from this partnership is anticipated to start contributing in 2026 [3] Market Sentiment - Stifel believes Snap's stock price, which has decreased by 37% year-to-date, already reflects the company's setbacks [4] - The median analyst target price for Snap is $8.00, indicating a potential upside of 53.26% despite recent target price cuts [4]