Check-Cap to merge with MBody AI in embodied AI workforce push
Investing.com - Guggenheim has reiterated its Neutral rating and $8.00 price target on Snap Inc (NYSE:SNAP), citing ongoing pricing challenges from the Sponsored Snaps roll-out and a mixed macroeconomic outlook. According to InvestingPro data, SNAP currently trades at $7.29, near its 52-week low of $6.90, though analysis suggests the stock may be undervalued at current levels.
The research firm expects Snap’s third-quarter advertising revenue to grow 4.6%, up slightly from 2.8% in the second quarter, despite continued pricing headwinds that are anticipated to persist into the fourth quarter. Total third-quarter revenue growth is forecast at 8.4%, within management’s guidance range of 7.5% to 9.6%. The company has demonstrated stronger historical growth, with revenue increasing 13.18% over the last twelve months, while maintaining robust liquidity with a current ratio of 3.88.
Guggenheim projects Snapchat+ subscription service will continue to show strong performance with expected revenue growth of 47.6% in the third quarter, helping to bolster overall revenue figures amid the advertising challenges.
The firm anticipates North America daily active user (DAU) declines to continue in the third quarter, with an expected loss of 2 million users. This decline is attributed to decreasing engagement with Friend Stories that is not yet being offset by growth in the Spotlight feature.
Guggenheim has revised its 2026 infrastructure cost growth forecast to flat year-over-year, down from its previous 7% growth projection, resulting in an increased 2026 adjusted EBITDA forecast of $809 million, which exceeds the consensus estimate of $755 million. InvestingPro analysis reveals 12 analysts have revised their earnings upward for the upcoming period, with additional insights available in the comprehensive Pro Research Report covering SNAP and 1,400+ other top stocks.
In other recent news, Snap Inc . has been involved in several notable developments. The company announced the issuance of $550 million in senior notes due in 2034, with an estimated net proceed of approximately $541.3 million. This move aims to strengthen its financial position. Meanwhile, Snap’s General Counsel, Michael O’Sullivan, has informed the company of his intention to depart at the end of 2025, citing no disagreements with the company’s operations or policies.
On the analyst front, Freedom Broker upgraded Snap’s stock rating from Hold to Buy despite the company’s second-quarter revenue growth missing expectations. In contrast, Guggenheim maintained a Neutral rating, highlighting a slowdown in Snap’s third-quarter global audience growth. Additionally, the Federal Trade Commission has launched an inquiry into Snap, among other companies, to assess the impact of AI chatbots on children and teenagers. These recent developments provide a multifaceted view of Snap’s current business landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.