Snap: Analysts Become More Cautious - Revenue Forecasts Remain Stable

The shares of Snap have suffered significantly in the past week, dropping by 30% following the release of the most recent quarterly results. Despite positive outcomes that revealed revenue of $1.2 billion and lower-than-expected losses, the shares closed at $9.36. The loss per share was a mere $0.15, which was 4.9% better than anticipated. Investors are currently facing a critical phase as they evaluate the company’s performance based on the report and scrutinize experts' forecasts for the coming year. The current consensus target of the 37 analysts for Snap projects a revenue of $5.36 billion for 2024, indicating a satisfactory increase of 7.7% compared to the past twelve months. Losses are expected to significantly decrease, falling by 26% to $0.53 per share. In comparison to the previous consensus forecast of $5.38 billion in revenue and a loss of $0.51 per share, there is a noticeable shift in expert expectations. While revenue figures remained stable, loss forecasts have been revised upward. Consequently, the average price target has been reduced by 5.7% to $14.55. The range of analyst opinions is considerable, with price targets between $10.00 and $20.00 per share. This indicates substantial uncertainties about the company’s future trajectory. Although Snap's revenue growth rate is expected to decelerate, it remains higher than the average industry growth of 10% per year, with an anticipated rate of 16%. However, it is important to note that losses are expected to increase next year, which could signal challenges within the company. Despite uncertainties in earnings forecasts, revenue development aligns with expectations and is projected to grow faster than the rest of the industry. These mixed signals have led to a noticeable reduction in the consensus price target, as analysts approach the latest results with caution. In the long term, a comprehensive view of the company remains significant for investors, and further insights and analyses for Snap, extending into 2026, are available on platforms like Simply Wall St.