New York, June 7, 2026, 18:02 EDT
- Snap (SNAP) ended Friday’s session down 5.11% at $5.76. Shares still managed to gain roughly 0.9% for the week compared with last Friday’s close.
- Wall Street fell after a strong jobs report stoked rate-hike fears. The Nasdaq Composite slid 4.18%, while the S&P 500 dropped 2.64%.
- Investors are waiting for U.S. inflation numbers out this week and Snap’s June 16 AWE keynote. CEO Evan Spiegel is set to talk about computing and Specs at the event.
Snap Inc. starts the week still dealing with Friday’s steep drop. Shares slid as tech stocks sold off and the market stayed wary of its ad outlook.
The stock closed at $5.76 on Friday, falling 5.11% after hitting an intraday bottom at $5.74. For the week, shares managed a small gain thanks to Monday and Thursday’s moves.
Market worries about another Fed rate hike hit on Friday, and selling pressure spread beyond Snap. The Nasdaq logged its steepest daily slide since April 2025, after a stronger-than-expected May jobs number rattled stocks, according to Reuters. High rates are a headwind for growth stocks, since they lower the value of projected earnings.
U.S. markets shut down Sunday. The next chance for regular NYSE trading is Monday at 9:30 a.m. Eastern, when the core session starts and runs through 4:00 p.m.
Snap is showing a mixed picture. The company last month reported first-quarter revenue up 12% at $1.529 billion, with net loss shrinking to $89 million. Adjusted EBITDA climbed to $233 million, stripping out interest, taxes, depreciation and amortization. CEO Evan Spiegel said Snap had “returned to growth in daily active users” and delivered strong free cash flow after capital spending. Snap Inc. Investor Relations
Snap’s lower costs didn’t fix its ad problem. Reuters said first-quarter ad revenue was up just 3% at $1.24 billion. North American daily active users fell, and average revenue per user was short of analyst views. The company also scrapped its $400 million Perplexity AI agreement, cutting out a possible AI tailwind.
Competition is still pressuring Snap. According to Reuters, Snap sits between TikTok and Meta’s Instagram, with Meta and Pinterest both turning in better first-quarter revenue. The report pointed to bigger ad budgets heading for larger platforms when buyers pull back.
UBS’s Stephen Ju says it doesn’t look like big North American ad spending will return to Snap fast, Barron’s reported, citing shifts toward TikTok. Ju has a Neutral on the stock and kept his $7 target.
Investors are still putting pressure on the company. In March, activist investor Irenic Capital Management said it holds about 2.5% of Snap’s Class A shares and pushed for cost cuts, changes to the portfolio, and more use of AI. “Snap should be worth a lot more than $7 billion,” Irenic portfolio manager Adam Katz wrote in a letter to Spiegel. Reuters
Macro numbers are on deck this week. The Bureau of Labor Statistics is set to release May’s Consumer Price Index on Wednesday and the Producer Price Index on Thursday. Both are key reads on inflation. Higher-than-expected data could weigh on growth and ad stocks, especially smaller names.
Snap CEO Evan Spiegel is set to give a keynote, “Making Computing More Human,” at the Augmented World Expo on June 16. The focus is expected to be Specs, the company’s smart-glasses project—which management keeps pointing to in their long-term plans. Investors are looking for more detail. Snap Newsroom
The risk is clear. If inflation prints spark new rate jitters, or Snap’s North America business doesn’t pick up in users and ads, then cost cuts and paid sign-ups might not be enough for the stock to turn. Shares still trade well off the 52-week high, so there’s room to rebound, but not much cushion if ad numbers disappoint again.
