Barclays Cuts Snap Price Target to $15 Citing Ad Lag and Regulatory Risks
Barclays cut Snap’s price target to $15 from $16 after Q4 2025 earnings, citing a lagging core advertising business and regulatory overhang. Stifel and Evercore ISI also trimmed their targets to $5.50 (Sell) and $9 (In Line), highlighting mixed Q4 results and uncertainties around the Perplexity deal.
1. Analyst Price Target Cuts
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.
2. Q4 Earnings Highlights
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.
3. Regulatory Overhang and Perplexity Deal Uncertainty
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.