LOS ANGELES, April 28, 2026, 7:01 PDT
Snap Inc. stock barely budged in early Tuesday U.S. trading, following a steep rally the previous session. Rothschild Redburn lifted its rating on the Snapchat parent to Buy and bumped its price target up to $10 from $5—double the prior level. Shares last traded 0.4% higher at $6.09.
Snap’s call couldn’t be better timed. With first-quarter numbers coming up on May 6, 2 p.m. Pacific, investors get a real look at whether trimming expenses and growing subscriptions can deliver better earnings, not just juice the stock.
Snap’s latest cost-cutting plan landed April 15, when CEO Evan Spiegel informed staff about slashing roughly 1,000 jobs—16% of its full-time workforce—and axing over 300 open positions. According to Spiegel, the cuts are meant to shave more than $500 million off the annualized cost base by the latter half of 2026, paving what he called “a clearer path to net-income profitability.” Snap Newsroom
Snap expects the layoffs to run up between $95 million and $130 million in severance and associated charges, according to a regulatory filing cited by AP. At the close of 2025, the company counted 5,261 full-time workers.
Redburn isn’t backing the whole group of smaller social-media names. Analysts Joseph Barker and James Cordwell argued that “AI is driving a bifurcation” in online ads, with Meta stretching its lead. Pinterest got cut, Reddit stayed at Sell. Snap stands apart—Redburn sees more promise there for diversifying revenue and keeping costs in check. Investing.com
Snap is leaning harder into subscriptions, sharpening its ad offerings, and pulling back on expenses. For 2025, revenue climbed 11% to $5.93 billion, trimming the net loss to $460 million from $698 million the previous year. In the fourth quarter, “other revenue” jumped 62% to $232 million, as Snapchat+ subscriptions surged 71% to 24 million. The company finished the year with 946 million global monthly active users—people logging in at least once during the 30-day month-end window. Snap Inc.
Pressure from activists is still in play. Last month, Irenic Capital Management revealed it holds about 2.5% of Snap’s Class A shares and called for the company to slash costs, buy back stock, and revisit its Specs augmented-reality glasses business. “Snap should be worth a lot more than $7 billion,” Irenic’s Adam Katz wrote in a letter to Spiegel. Reuters
Specs continues to divide opinion. Snap’s unit intends to roll out smart glasses powered by Qualcomm’s Snapdragon XR platform before year-end, carving out more autonomy and making it easier for external investors to get in, according to the company. The product also drops Snap into direct competition with Meta’s Ray-Ban AI glasses—still among the rare consumer standouts in the AI wearables category.
Cuts might buy Snap some breathing room, but they’re no fortress. That’s according to Russ Mould, investment director at AJ Bell, who pointed out that while trimming costs could keep activists happy for now, there’s still no clarity on whether Snap’s business is robust enough to deliver profit and real cash flow. On top of that, Reuters said Snap is looking at first-quarter revenue of roughly $1.53 billion, with adjusted core profit landing near $233 million—both figures topping what Wall Street was expecting.
So May 6 isn’t just another earnings day. Snap’s got momentum—a rally, a fresh analyst upgrade, and its cost-cutting roadmap. But the real test? Proving ads remain solid, even as it leans harder on subscriptions and AI features.
