In a notable turn of events for Snap Inc. (SNAP), analyst Naved Khan from B. Riley Securities assigned a “Buy” rating on February 5, 2026. This upgrade comes with a price target of $10, indicating significant upside potential from the stock’s current trading level. For investors, this evaluation suggests a renewed confidence in the company’s prospects amid a challenging market environment.
Recent Price Action
Snap Inc.’s stock has experienced considerable fluctuations in the past week, closing recently at $5.89. This represents a striking decline of approximately 8.9% or $0.53 from the previous session, reflecting a broader volatility in the tech-driven social media sector. Over the past twelve months, SNAP’s performance has been even more tumultuous, falling 34.49% as the company navigated financial challenges and shifts in user engagement. Despite a 52-week low of $1.5 and a high of $49.53, the stock’s beta stands at 0.796, indicating less volatility relative to the market, which could appeal to risk-averse investors. Recent trading volumes surged to over 75 million shares, well above the average of around 47 million, pointing to heightened investor interest—or perhaps concern—about the company’s future.
Historical Performance
Analyzing Snap’s performance over multiple time frames reveals a concerning trend. The stock has dipped by 2% in the last month and 3.92% over the most recent quarter. The last year has been particularly harsh, with shares plummeting by 34.49%. Monthly volatility remains at 3.44%, while weekly volatility has been slightly lower at 3.4%, reflecting a period of relative stability. The recent average trading volume of approximately 57 million shares in the last 10 days signifies active engagement, even as the stock struggles to find its footing.
Earnings Analysis
In the company’s latest earnings report dated November 5, 2025, Snap posted an earnings per share (EPS) of -$0.06, falling short of the expected breakeven point of $0.06. This disappointing surprise was notably a -200% variance, contrasting with a slightly more favorable previous quarter where the EPS was -$0.13 against an expectation of -$0.16. This recent EPS performance suggests difficulties in achieving profitability and raises questions regarding the management’s execution and strategic direction. Analysts are closely watching how Snap addresses these challenges moving forward.
Consensus Ratings
Analysis from 14 analysts on the stock reveals a predominance of “Hold” ratings, with only one “Buy” and no “Sell” recommendations. The average price target assembled from these analysts currently stands at approximately $8.42, significantly below B. Riley’s target of $10. The highest price target reaches $10, mirroring the recent upgrade, while the lowest stands at $6.40. This mixed consensus indicates uncertainty around Snap’s near-term outlook, despite the optimistic view from B. Riley Securities that calls for positive momentum.
Stock Grading or Fundamental View
Snap Inc.’s Stocks Telegraph (ST) grading score of 38 points to underlying weaknesses in its investment profile and market standing. This score, derived from intricate financial and market analyses, suggests that while Snap possesses certain strengths, there are considerable areas of concern that could weigh heavily on long-term performance. Investors keen on the social media space should view this score as a crucial indicator of the company’s overall health and competitive positioning.
Conclusion
Investors eyeing Snap Inc. (SNAP) should consider the nuanced landscape of its business. With a “Buy” rating from B. Riley Securities marking a strategic opportunity for those willing to accept higher volatility in pursuit of recovery, this stock may attract growth-oriented investors. However, potential buyers should remain mindful of the risks tied to Snap’s earnings variability and broader market shifts that could impact sentiment. Ultimately, with considerable challenges ahead, Snap is certainly a stock to watch, especially for those who believe in its capacity to innovate and rebound in an increasingly competitive sector.