Core Viewpoint - Snap Inc. is facing challenges in user growth and stock performance, leading to mixed ratings from analysts, with some showing cautious optimism following recent earnings results [1][2][6]. Financial Performance - Snap's fourth-quarter 2025 earnings report showed earnings per share of 3 cents, surpassing expectations of a 2-cent loss, with revenues increasing by 10.2% year over year to $1.72 billion, exceeding Zacks Consensus Estimate by 1% [4][6]. - The Average Revenue Per User (ARPU) rose by 5%, and Snapchat revenues surged by 62% to $232 million [4]. Regional Revenue Breakdown - North American revenues, which account for 60% of Snap's total revenues, grew by 6% to $1.03 billion [5]. - European revenues, making up 20% of the total, increased by 19% to $341 million [5]. Stock Performance and Analyst Ratings - Snap's stock price recently hit a record low of $5.40, reflecting an 8.71% decrease, with a market capitalization of approximately $9.1 billion and a trading volume of 95.8 million shares [5]. - Evercore ISI maintained a "Mixed" grade for Snap and adjusted the price target from $13 to $9, indicating a cautious outlook [2][6]. - B. Riley upgraded Snap to a Buy rating from Neutral, suggesting optimism about Snap's potential recovery following the earnings report [2].

Group 1 - The article discusses the potential for investors to position themselves in undervalued stocks that are mispriced by the market as February begins [1] - Stone Fox Capital, based in Oklahoma, is led by Mark Holder, a CPA with 30 years of investing experience, including 15 years as a portfolio manager [2] - The investing group "Out Fox The Street" provides stock picks, deep research, model portfolios, daily updates, real-time alerts, and community chat for investors [2]

Group 1 - B. Riley upgraded shares of Snap to Buy from Neutral [1]

Core Viewpoint - Snap's stock price has reached a record low of $5.9, breaking a crucial support level for the first time in its history following the release of its financial results [1] Financial Performance - The company published its financial results which contributed to the significant drop in stock price [1]

Core Insights - Snap, Inc. reported a positive fourth-quarter performance with earnings of three cents per share, surpassing the consensus estimate of a loss of three cents [1] - Quarterly revenue reached $1.72 billion, exceeding analyst expectations of $1.702 billion by 0.84%, and marking a 10.21% increase from $1.557 billion in the same period last year [1] User Metrics - Daily active users (DAU) decreased to 474,000 in the fourth quarter, down from 477,000 in the third quarter [2] - CEO Evan Spiegel indicated that the Q4 results reflect a strategic shift towards profitable growth, leading to revenue diversification and margin expansion [2] Analyst Ratings - Susquehanna analyst Shyam Patil maintained a Neutral rating on Snap and reduced the price target from $9 to $6.5 [3] - Mizuho analyst Lloyd Walmsley also maintained a Neutral rating, lowering the price target from $9 to $7 [3] - Rosenblatt analyst Barton Crockett kept a Neutral rating and cut the price target from $9.5 to $6.4 [3]

Core Insights - Snap, Inc. reported a positive fourth-quarter performance with earnings of three cents per share, surpassing the consensus estimate of a loss of three cents [1] - Quarterly revenue reached $1.72 billion, exceeding analyst expectations of $1.702 billion by 0.84%, and marking a 10.21% increase from $1.557 billion in the same period last year [1] User Metrics - Daily active users (DAU) decreased to 474,000 in the fourth quarter, down from 477,000 DAU in the third quarter [2] - CEO Evan Spiegel indicated that the Q4 results reflect a strategic shift towards profitable growth, leading to revenue diversification and margin expansion [2] Market Reaction - Snap shares increased by 0.7% to $5.95 in pre-market trading following the earnings announcement [2] - Analysts adjusted their price targets for Snap post-earnings, with Susquehanna lowering it from $9 to $6.5, Mizuho from $9 to $7, and Rosenblatt from $9.5 to $6.4, all maintaining a Neutral rating [3]

Core Insights - Snap (SNAP) reported fourth-quarter 2025 earnings of 3 cents per share, exceeding the Zacks Consensus Estimate of a loss of 2 cents, and up from earnings of 1 cent per share in the same period last year [1] - Revenues increased by 10.2% year over year to $1.72 billion, surpassing the Zacks Consensus Estimate by 1% [1] Revenue Breakdown - North America, accounting for 60% of total revenues, saw a 6% year-over-year increase to $1.03 billion [2] - Europe, representing 20% of revenues, experienced a 19% rise to $341 million [2] - Revenues from the Rest of World (ROW), also 20% of revenues, reached $350 million, up 16% year over year [2] - Average revenue per user (ARPU) rose 5% year over year to $3.62, with North America and Europe seeing increases of 12% and 20%, respectively [2] Subscription and User Engagement - Other revenues, primarily from Snapchat+ subscriptions, surged 62% year over year to $232 million, with an annualized run rate exceeding $928 million [3] - Snapchat+ subscribers reached 24 million, reflecting a 71% year-over-year growth [3] - Global daily active users (DAU) reached 474 million, a 5% increase year over year, although there was a loss of three million DAU quarter-over-quarter [4] Advertising Performance - Revenues from In-App Optimizations grew 89% year over year, driven by advancements in app models and new immersive formats [7] - Dynamic Product Ads revenues increased by 19% year over year, supported by large advertisers and a shift from static to dynamic solutions [7] - Sponsored Snaps click-through rates grew 7%, and click-through purchases increased 17% from Q3 to Q4 [8] Financial Metrics - Total active advertisers increased by 28% year over year, aided by improved onboarding and campaign workflows [10] - Cost of revenues rose 5% year over year to $702 million, while adjusted EBITDA increased by 29.6% to $358 million, with an adjusted EBITDA margin expansion of 3 percentage points to 21% [11] Cash Flow and Balance Sheet - As of December 31, 2025, cash, cash equivalents, and marketable securities totaled $2.9 billion, down from $3 billion as of September 30, 2025 [12] - Operating cash flow was $270 million, compared to $146 million in the prior quarter, and free cash flow was $206 million, up from $93 million [12] Future Guidance - For Q1 2026, Snap expects revenues between $1.56 billion and $1.6 billion, indicating a year-over-year growth of 9-12% [13] - The company projects adjusted EBITDA between $205 million and $245 million, with low double-digit revenue growth anticipated for 2026 and an adjusted EBITDA margin expansion of approximately 500 basis points compared to full-year 2025 [13]

Group 1 - The target price for Snap (SNAP.N) has been lowered from $9 to $7 by the company Gatton Beixiang [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - The company positions artificial intelligence (AI) as a central lever for enhancing advertiser performance and driving profitable growth during the fourth-quarter earnings call [1][3] - AI is being integrated end-to-end across the advertising platform, focusing on creative development, campaign delivery, and optimization to improve direct-response outcomes and return on ad spend [2][4] Advertising Performance - In Q4, targeted improvements in dynamic product ads led to a 55% reduction in cost per action for seven zero conversions and a 45% reduction for one zero conversion, with dynamic product ad revenue growing 19% year over year [5] - Sponsored Snaps showed a 7% increase in click-through rates and a 17% increase in click-through purchases from Q3 to Q4, highlighting their effectiveness in engaging users [6] Case Studies and Success Metrics - Advertiser case studies demonstrated significant lower-funnel performance, with Kon-Tiki achieving a 283% increase in return on ad spend and a 72% reduction in cost per purchase through Sponsored Snaps [7] - The Saudi QSR brand Kudu combined AR lenses with Sponsored Snaps, resulting in 40% more app installs at a 76% lower cost per install and 38 times more purchases at an 84% lower cost [7] App Advertising and SMB Growth - The app advertising business accelerated in Q4, with revenue from in-app optimizations growing 89% year over year, attributed to advancements in foundational app models and immersive formats [8] - Small and medium-sized businesses contributed significantly to advertiser growth, with total active advertisers increasing by 28% year over year in Q4 [9] Financial Performance - Revenue grew 10% year over year in Q4, with advertising revenue reaching $1.48 billion, up 5% year over year, supported by strength in the SMB segment and improved performance across newer ad formats [10] - Gross margin reached 59% in Q4, reflecting a shift toward higher-margin revenue streams [11] User Engagement and Future Plans - More than 200 million Snapchatters engaged with games monthly in Q4, a 90% year-over-year increase, driven by new game formats [12] - The company plans to launch augmented reality hardware publicly in 2026, indicating a long-term growth strategy beyond smartphones [12]