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Investing.com - Citizens JMP has reiterated its Market Outperform rating and $12.00 price target on Snap Inc (NYSE:SNAP), despite ongoing declines in user engagement. Trading at $9.34, SNAP has shown strong momentum with a 25% decline over the past six months, though InvestingPro data indicates analyst targets range from $6.50 to $15.00.
The firm’s analysis shows that Snapchat’s U.S. time spent fell nearly 14% year-over-year, marking a worsening trend compared to May, even against easier comparative figures from the previous year.
Global time spent on the platform has now declined year-over-year for five consecutive months, according to Citizens JMP’s data.
Despite these usage challenges, the firm maintains its positive outlook, noting that "Snapchat’s position as a communication platform remains unchallenged given its camera-first approach that remains differentiated."
Citizens JMP believes the time share losses are primarily occurring in Snapchat’s Spotlight and Discover features, attributing this to "improved relevance of Instagram’s video content" rather than weakness in Snapchat’s core messaging functionality.
In other recent news, Snap Inc. has seen several significant developments. Wells Fargo (NYSE:WFC) has raised its price target for Snap to $11, citing expectations for accelerated revenue growth due to an improving advertising environment. The firm anticipates Snap will achieve $76 million in EBITDA for the second quarter, surpassing consensus estimates, and expects third-quarter revenue guidance to reflect 12-15% year-over-year growth. In a separate update, Loop Capital Markets adjusted Snap’s price target to $12, down from $16, while maintaining a Buy rating, reflecting a more conservative sales multiple for valuation.
Snap Inc. also announced a partnership with RWS Global to integrate augmented reality technology into live sporting events, aiming to enhance fan experiences and create new sponsorship opportunities. Additionally, Snap revealed plans to launch a new version of its augmented reality glasses, Specs, in 2026, featuring advanced AI and AR capabilities. The company also introduced updates to its operating system, Snap OS, and new developer tools for creating AI-powered applications. Furthermore, Snap has scheduled its 2025 annual stockholders meeting for August 1, allowing stockholders to access the meeting through its investor relations website.
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