Is Snap’s New AI Video Tool And Hardware-Focused Director Altering The Investment Case For Snap (SNAP)?

• Earlier in December 2025, Snap Inc. expanded its board from eleven to twelve members and appointed Matthew McRae, an experienced technology and hardware executive, as a director, while also rolling out Quick Cut, an AI-powered, Lens-based tool that helps users rapidly create beat-synced videos entirely within Snapchat.
• These moves highlight Snap’s emphasis on bolstering leadership with connected-device expertise and deepening in-app video creation to strengthen engagement and content workflows.
• We’ll examine how Quick Cut’s AI-driven video creation capabilities could influence Snap’s longer-term investment narrative around higher-margin innovation.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Snap Investment Narrative Recap

To own Snap today, you need to believe it can turn its large, young user base and AR focus into a more profitable, diversified business, despite ongoing losses and heavy reliance on advertising. The Quick Cut launch and Matthew McRae’s appointment support the near term catalyst around richer AR and video experiences, but they do not materially change the key risk that rising competition and persistent unprofitability continue to weigh on the story.

Among recent developments, Quick Cut stands out as most relevant here because it directly ties Snap’s AR strengths to in app video creation, potentially supporting engagement and monetization efforts. For investors watching the catalyst around AR led innovation, this tool illustrates how Snap is trying to deepen content creation in the core app rather than relying only on future hardware like Specs glasses.

Yet, while these product and board changes may help over time, investors should still be aware of the risk that persistent unprofitability and heavy ad dependence could...

Read the full narrative on Snap (it's free!)

Snap's narrative projects $7.5 billion revenue and $827.3 million earnings by 2028. This requires 10.0% yearly revenue growth and a $1.37 billion earnings increase from -$546.3 million today.

Uncover how Snap's forecasts yield a $9.87 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community currently see Snap’s fair value anywhere from US$8.23 to US$18, highlighting wide differences in expectations. Set those views against the ongoing concern about persistent losses and ad dependence, and it becomes even more important to compare several perspectives before forming a view on Snap’s long term potential.

Explore 14 other fair value estimates on Snap - why the stock might be worth over 2x more than the current price!

Build Your Own Snap Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Snap research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Snap research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Snap's overall financial health at a glance.

Ready To Venture Into Other Investment Styles?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 34 best rare earth metal stocks of the very few that mine this essential strategic resource.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com