Snap Inc. (SNAP): A Fresh Valuation Check After Major Structural Shakeup and New Growth Strategy

If you’re watching Snap (SNAP) right now and wondering whether to sit tight, cash in, or buy in, you’re not alone. Snap has made headlines with its decision to overhaul its structure, rolling out newly formed “startup squads” to counter slowing advertising revenues. With fierce competition from rivals and cracks appearing in its traditional strategy, this shakeup signals the company is serious about reigniting growth and adapting to shifting market demands.

Looking at where Snap has come over the past year, it's clear that these changes come after a period of pressure. The stock is down over 15% compared to last year and has fallen sharply since the start of 2025, echoing the headwinds in revenue growth. While there have been some bright spots, such as expansion in international markets and new executive appointments, the momentum for Snap shares has faded and the market is factoring in more risk.

With Snap leaning hard into innovation to recapture speed and relevance, the real question is whether these changes mean the stock is now undervalued or if the market has already factored in the company’s next act. Is this a buying opportunity, or is Snap fairly priced for what comes next?

Most Popular Narrative: 21.6% Undervalued

The most followed valuation narrative suggests Snap stock is trading well below fair value, with a significant discount to the consensus analyst target price.

Accelerating innovation in augmented reality (AR), including the upcoming public launch of Specs AR glasses in 2026 and continuous expansion of the AR developer ecosystem, positions Snap to benefit from both increased user engagement and the creation of premium advertising and subscription revenue streams. This can boost top-line revenue and improve gross margins over time.

Curious about why Snap’s latest innovations could unlock explosive growth? The secret behind this bullish outlook is a set of bold projections for user engagement and digital monetization. Want to know which assumptions really move the needle for Snap’s valuation? Discover how future profit margins, platform expansion, and a key multiple all tie into the analyst price target.

Result: Fair Value of $9.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent losses and fierce competition from larger rivals could prevent Snap from achieving the profitability needed to justify this bullish valuation narrative.

Find out about the key risks to this Snap narrative.

Another View: Multiples Tell a Different Story

While analysts see Snap as undervalued, a quick look at its sales-based valuation compared to the broader industry suggests the shares may actually be on the expensive side. Which view gets closer to the true picture?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Snap to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Snap Narrative

If you have your own perspective or want to dig deeper into Snap's numbers, it's easy to craft your own view and personalize the story in just a few minutes. Do it your way

A great starting point for your Snap research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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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.

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