Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $7.00 price target on Snap Inc (NYSE:SNAP) following the company’s second-quarter results. According to InvestingPro data, SNAP currently trades at $7.50 with a market capitalization of $12.5 billion, while analysts maintain a moderate consensus rating of 2.84 (Hold).
The social media company reported second-quarter revenue in line with expectations, while EBITDA came in $6 million below prior Street estimates, according to Cantor Fitzgerald. Ad revenue growth decelerated by 5 percentage points to 4% year-over-year, attributed to temporary ad platform issues, Ramadan comparisons, and minimal changes. InvestingPro analysis shows the company’s last twelve months EBITDA stands at -$495 million, though analysts expect profitability improvement this year.
Snap’s ad revenue showed recovery in May after just 1% year-over-year growth in April, but experienced a slowdown to 3-4% in June with the broader rollout of Sponsored Snaps. The trend continued into July with 3-4% growth, though the company anticipates some demand improvement in August and September.
For the third quarter, Snap guided total revenue growth of 7-10% year-over-year, exceeding prior Street estimates of 7% but falling short of recent trends seen in large-cap digital advertising platforms. North American Daily Active Users declined quarter-over-quarter for the second consecutive time, raising potential concerns about engagement loss.
Cantor Fitzgerald noted Snap continues making progress on direct response initiatives and should see ad budget growth in undermonetized areas in the second half of the year and beyond, but revised its fiscal year 2026 revenue estimates lower by 1% while maintaining its $7 price target.
In other recent news, Snap Inc reported mixed second-quarter results, with advertising revenue growth slowing to 3.8%, a decline from 9.3% in the first quarter. This deceleration was primarily seen in Direct Response advertising, while brand advertising trends showed modest improvement. In response to these developments, several analyst firms have adjusted their price targets for Snap. Guggenheim reduced its price target to $8.00, citing the mixed results and slowing growth trends, while Rosenblatt Securities lowered its target to $8.70 due to an ad auction mishap that led to unintended discounts. Stifel maintained its Hold rating with an $8.00 price target, noting that Snap’s revenue was approximately in line with expectations despite some challenges. Wells Fargo (NYSE:WFC) significantly lowered its price target to $7.00, driven by weaker-than-expected second-quarter trends and third-quarter guidance, which prompted a reduction in their fiscal year 2025 and 2026 ad revenue forecasts. UBS also adjusted its target to $9.00, expressing concerns about advertising revenue growth and estimating a modest increase in third-quarter growth. These recent developments highlight the varied analyst perspectives on Snap’s financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.