RBC Capital maintains a “Sector Perform” rating with a hold action on NYSE:SNAP.
Snap’s Q1 revenue increased by 14% year-over-year, surpassing estimates.
The company significantly reduced its net loss to $140 million from $305 million.

Snap Inc (NYSE:SNAP) is a leading social media company, renowned for its Snapchat app, which allows users to send ephemeral photos and videos. Competing in the digital advertising arena with giants like Meta and Google, Snap recently received an updated rating of “Sector Perform” from RBC Capital on May 2, 2025, as reported by Benzinga. At this time, SNAP’s stock was trading at $7.83.

Despite showcasing a strong performance in the first quarter, Snap’s stock took a hit, dropping over 15% following the company’s decision to withhold guidance for the upcoming quarter. This move sparked investor concern, particularly as competitors Meta and Google seem to be capitalizing on shifts in advertising spending. Nonetheless, Snap reported a 14% increase in Q1 revenue year-over-year, achieving $1.36 billion and exceeding the forecasted $1.34 billion.

Moreover, Snap made significant strides in reducing its net loss to $140 million from $305 million, with an improvement in loss per share to $0.08 from $0.19 year-over-year. The platform’s daily active users climbed to 460 million, marking an increase from 453 million in the preceding quarter. CEO Evan Spiegel celebrated the milestone of exceeding 900 million monthly active users, attributing this success to enhancements in direct-response advertising solutions and the growth of the Snapchat+ subscription service.

As of the latest update, SNAP’s stock price stands at $8.30, reflecting a 6.00% increase with a change of $0.47. The stock has fluctuated between $7.84 and $8.32 today. Over the past year, SNAP reached a peak of $17.33 and a trough of $7.08. The company’s market capitalization is approximately $14.08 billion, with a trading volume of 23.84 million shares on the NYSE.