New York, July 12, 2026, 17:18 EDT
Snap Inc. NYSE:SNAP isn’t getting much traction from its new subscriptions yet, with shares finishing the week at $4.68, down 3.3%. That lagged the Nasdaq Composite (INDEXNASDAQ:.IXIC), which rose 1.7% over the same stretch. Snap still faces sluggish ad sales in North America. U.S. markets are shut for the weekend and will reopen Monday. Snap’s next big date is its second-quarter results set for Aug. 3.
The relative drop stands out since the overall market was risk-on. Meta Platforms Inc. NASDAQ:META surged 14.8% and Pinterest Inc. NYSE:PINS was up 2.0%. Snap lagged and fell.
| Stock or index | Friday close | Week to July 10 |
|---|---|---|
| Snap | $4.68 | fell 3.3% |
| Meta Platforms | $669.21 | jumped 14.8% |
| $22.52 | added 2.0% | |
| Nasdaq Composite | 26,281.61 | up 1.7% |
Wells Fargo & Co. NYSE:WFC dropped its price target to $5. D.A. Davidson started coverage with a neutral rating, also setting a $5 target. Goldman Sachs Group Inc. NYSE:GS cut its target to $6. That averages out to $5.33, just 14% above where shares closed Friday. D.A. Davidson’s Wyatt Swanson pointed to “engagement headwinds in North America” and weak progress on ARPU. Wells Fargo said advertiser checks in the U.S. were still sluggish. TipRanks
Low expectations from investors are tied to the mixed revenue picture. Snap saw revenue up 12% in the first quarter to $1.529 billion. But ad revenue managed only a 3% rise, landing at $1.24 billion. Other revenue was up 87% at $285 million. CEO Evan Spiegel claimed the company “returned to growth in daily active users.” Still, daily users in North America dropped 7% to 92 million, and ARPU came in at $3.17, missing the $3.21 analysts were hoping for. Snap Inc.
| Revenue stream | Q1 2025 | Q1 2026 | Year-on-year change |
|---|---|---|---|
| Advertising | Roughly $1.21 billion | $1.24 billion | +3% |
| Other revenue | Near $152 million | $285 million | +87% |
| Total revenue | $1.363 billion | $1.529 billion | +12% |
Snap’s 2025 revenue stream figures are based on reported totals plus growth rates.
Those numbers mean that around $133 million out of Snap’s $166 million annual sales jump came from other revenue lines—so about 80% of the growth—even though ads still make up about 81% of total revenue. That’s the main takeaway. A second quarter that beats because of subscriptions could help cash flow, but investors may stay cautious on the stock’s value if ad growth doesn’t pick up, too.
Peers show where the gains are. Meta rallied again after rolling out new AI products and chips. D.A. Davidson launched coverage on Pinterest as a buy, setting a $26 target after 10 straight quarters of engagement growth. Snap has a different job: get advertisers to pay more for its current ad slots, instead of pushing more paid features to users.
Three key reports land this week for ad spending and equity valuations. June consumer prices hit Tuesday, producer prices show up on Wednesday, then retail sales Thursday. Retail sales track shopper demand. Inflation numbers could move rate outlooks. “This is a high-bar quarter with a narrow margin of error,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, part of U.S. Bancorp NYSE:USB. Bureau of Labor Statistics
The risk can go either way. If U.S. ad demand comes in stronger or paid subscriptions jump again, Snap could move above the $5 to $6 target range. Any miss, more weakness in North American users or higher Specs costs—those AR glasses that layer digital images on reality—could drag the stock down toward the 52-week low of $3.81. That’s about 18.6% under Friday’s close. CEO Spiegel has stood by Specs as a long-term play, even as an activist investor called for dropping or spinning off the unit.
The $5 level looks set to be the pivot for Snap through Aug. 3. A revenue beat driven only by subscriptions probably won’t impress. Bulls want to see ad growth topping last quarter’s 3%, steady North American user numbers, and better ARPU. If Snap doesn’t hit those, the stock might stay cheap for good reason.
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