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Investing.com - Goldman Sachs raised its price target on Snap Inc (NYSE:SNAP) to $9.00 from $8.50 while maintaining a Neutral rating following the company’s Q2 2025 earnings report. According to InvestingPro data, Snap’s current market capitalization stands at $15.8 billion, with analyst targets ranging from $7 to $15 per share. InvestingPro analysis suggests the stock is currently undervalued.
The investment bank noted that Snap experienced volatile month-to-month revenues in Q2, which remained under pressure due to various factors. Despite these challenges, the company maintained a healthy 14.91% revenue growth over the last twelve months. Management provided a "modestly more constructive picture" for Q3, though they remain cautious about second-half trends.
Goldman Sachs highlighted that Snap continues to focus on elements within its control, including Snapchat+ and Sponsored Snaps, both of which are gaining momentum and scale. The company’s strong financial position is evident in its impressive current ratio of 4.3, indicating solid liquidity. The company is also maintaining investment focus on product momentum and long-term platform evolution in AI, augmented reality, and Specs hardware. For deeper insights into Snap’s financial health and growth potential, check out the comprehensive research report available on InvestingPro.
In the short term, Goldman Sachs expects investor attention to remain on industry macroeconomic outcomes and company-specific narratives, particularly regarding normalized growth and margin trajectory as Snap exits 2025.
For the long term, the firm views Snap as building toward a multi-year strategic vision aligned with shifting consumer engagement toward augmented reality and spatial computing, with platform and product evolution (including Specs hardware) designed to meet this vision.
In other recent news, Snap Inc. reported its second-quarter 2025 earnings, revealing a slight miss on earnings per share (EPS) but stable revenue. The company’s EPS was reported at -$0.16, narrowly missing the forecast of -$0.15, while revenue aligned with expectations at $1.35 billion. In light of these results, Citizens JMP downgraded Snap Inc. from Market Outperform to Market Perform. This decision was influenced by Snap’s advertising revenue growth, which slowed to just 4% year-over-year in Q2 2025. The downgrade suggests that Snap may be losing market share to other major advertising platforms. These developments have drawn attention from investors and analysts alike, highlighting the challenges Snap faces in the competitive advertising landscape.
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