Snap Inc. Targets Cut to $8 on Weak DAUs, Muted Ad Growth
Piper Sandler cut its price target on Snap Inc. from $10 to $8 after Q4 revenue beat estimates by about 1% and EBITDA exceeded forecasts by 18%, citing weaker daily active users and higher projected expenses. Truist Securities also lowered its target from $11 to $8, noting muted 5% advertising growth.
1. Piper Sandler Lowers Price Target to $8
On February 6, Piper Sandler reduced its Snap Inc. price target from $10 to $8 after Q4 revenue beat its forecast by about 1% and EBITDA exceeded expectations by 18%. The firm cited weaker daily active user trends, higher projected expenses, and lowered its FY2026 EBITDA estimate by 9%.
2. Truist Securities Cuts Target to $8
Also on February 6, Truist Securities cut its price target from $11 to $8 while maintaining its Hold rating, following Q4 2025 results and Q1 2026 guidance that were largely in line with expectations. Truist highlighted solid cost management but noted advertising growth remained muted at 5%.
3. Implications for Company Outlook
The simultaneous reduction of price targets by two major analysts underscores growing concerns about Snap Inc.’s user engagement and expense trajectory, which could pressure valuation multiples and influence investor sentiment in the near term.