Monness analyst Brian White has maintained their neutral stance on SNAP stock, giving a Hold rating on April 17.
Brian White’s rating is based on several factors affecting Snap’s performance and outlook. Despite some progress, Snap’s stock has underperformed significantly in recent years, with a substantial decline in 2024 and continued challenges in 2025. The competitive environment remains tough, particularly with the rise of generative AI favoring larger platforms, and the sensitivity of digital ad spending to economic fluctuations adds to the uncertainty.
Additionally, while Snap is expected to meet revenue and EPS estimates for the first quarter of 2025, the growth rate shows signs of deceleration compared to previous years. The company’s direct response advertising has improved, but brand-oriented advertising continues to face difficulties. Furthermore, the potential TikTok ban, which could have been advantageous for Snap, remains uncertain due to geopolitical tensions. These factors collectively contribute to the Hold rating, reflecting a cautious outlook amidst a challenging landscape.
In another report released on April 17, Canaccord Genuity also maintained a Hold rating on the stock with a $10.00 price target.