The Wall Street expects the company to post a profit of $0.15 per share, almost flat from the same year-ago quarter.
- Roth Capital said it remains cautious on Snap shares heading into earnings as it sees sequential decline in users to weigh on any revenue or EBITDA upside.
- UBS lowered the firm's price target on Snap to $9 from $10.
- On Tuesday, in order to meet the requirements of Australia's Social Media Minimum Age, the company disabled over 415,000 Snapchat accounts in Australia.
Shares of social media platform Snap fell nearly 3% on Monday as investors turned their focus to Tuesday’s earnings announcement.
At the time of writing, Snap stock was down nearly 4% and was among the trending stocks on the Stocktwits platform.
Q4 Earnings Preview
Snap is expected to post a fourth quarter (Q4) revenue of $1.70 billion, a 9% jump from the same quarter a year-ago, according to data from fiscal.ai.
Wall Street expects the company to post a profit of $0.15 per share, almost flat from the same year-ago quarter. The company had missed profit estimates for the third and second quarter of 2025.
Earlier, Roth Capital said it remains cautious on Snap shares heading into earnings as it sees sequential decline in users to weigh on any revenue or EBITDA upside. Perplexity deal launch and AR glasses announcement are among the catalysts to get constructive on the stock in the first half of the year, the firm added. It raised the firm's price target on Snap to $10 from $9 and kept a ‘Neutral’ rating on the shares.
UBS, however, lowered the firm's price target on Snap to $9 from $10 and kept a ‘Neutral’ rating on the shares.
UBS said that the Q4 earnings outlook for advertising-driven companies’ points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December.
Recent News
According to a report from the New York Times, Snap agreed to settle a tech addiction lawsuit ahead of a landmark trial alleging social media companies engineered addictive products that harm young users.
On Tuesday, it announced that in order to meet the requirements of the Australia's Social Media Minimum Age (SMMA), the company, as of the end of January 2026, has locked or disabled over 415,000 Snapchat accounts in Australia belonging to users who either declared an age under 16 or were believed to be under 16 based on its age detection technology.
How Did Stocktwits Users’ React?
Retail sentiment around SNAP trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
One user said the stock has low downside risk and the upside is attractive.
Shares in the company have fallen 39.5% over the past 12 months.
