NEW YORK, Jan 14, 2026, 10:36 a.m. ET — Regular session
- Snap shares dropped roughly 1% in early trading, continuing their recent downward streak.
- Morgan Stanley raised its price target on Snap, while Goldman Sachs lowered theirs—both maintaining neutral ratings.
- Investors absorbed bank earnings alongside fresh U.S. inflation figures, eyeing upcoming data and Snap’s next earnings report.
Snap (SNAP.N) shares dropped 1.4% to $7.88 Wednesday morning, deepening their slide amid ongoing pressure on tech and advertising stocks. Meta Platforms and Pinterest also slipped, each down roughly 1.5%.
The shift carried weight beyond a single stock as risk appetite faltered following a streak of record highs. By mid-morning, the Dow slipped roughly 0.2%, the S&P 500 fell about 0.4%, and the Nasdaq dropped near 0.7%, with investors digesting bank earnings, inflation figures, and fresh policy and court news. 1
Snap now faces a period where consistent results matter more than fresh features. On Tuesday, two major brokers adjusted their price targets, highlighting how quickly smaller ad platforms can be repriced when growth projections shift, even slightly.
Snap slipped 2.4% on Tuesday, ending the day at $7.99. That marked its fifth day in a row of declines and put the stock roughly 35% below its 52-week peak, per MarketWatch data. Trading volume edged just above the recent average. 2
Morgan Stanley’s Brian Nowak bumped Snap’s price target to $9.50 from $8.50 but kept his Equal Weight rating. He said 2026 should mirror 2025 for internet stocks, with the market favoring companies that demonstrate better ROIC — return on invested capital, a key metric of profit relative to investment — especially those linked to generative AI and GPU-driven products. 3
Goldman Sachs analyst Eric Sheridan took a different stance, lowering his price target to $8.50 from $9.50 while maintaining a Neutral rating. The firm slightly trimmed its forward user and revenue growth forecasts to align with the company’s latest management commentary and guidance. 4
Snap knows this struggle well. Its stock often moves on modest changes in ad demand and user growth forecasts, lacking the scale that bigger competitors enjoy when spending pulls back.
Wednesday’s macro data offered little relief. U.S. producer prices climbed 0.2% in November and were 3.0% higher than a year ago, according to a report postponed by the government shutdown. The numbers kept investors fixated on the duration of restrictive interest rates. 5
The downside risk is clear: if advertising demand weakens or Snap’s user and revenue numbers disappoint in its next update, the stock could tumble quickly. Competition is fierce, and investors have little patience for “show me” stories that fall short.
Investors are now focused on Snap’s upcoming earnings, expected in early February. The company’s next report is marked for Feb. 3 on Yahoo Finance’s earnings calendar. 6
