In Q4 2025, Snap’s core advertising revenue underperformed expectations and user growth decelerated, prompting cautious guidance for Q1. The company’s revenue forecast omitted potential contributions from the newly announced Perplexity deal, leading to a notable guidance miss. Barclays lowered its target on Snap to $15 from $16 and maintained an Overweight rating, pointing to a lagging advertising business and regulatory overhang across regions. On the same earnings update, Stifel reduced its target to $5.50 (Sell) and Evercore ISI cut its target to $9 (In Line), reflecting mixed signals from the quarter. Snap faces regulatory scrutiny in multiple markets, which could constrain growth and valuation. The Perplexity partnership remains in early stages, with unclear revenue impact and timing, adding to investor uncertainty about Snap’s near-term outlook.