Stifel Upgrades Snap to Hold, Keeps $5.50 Target After User Declines
Stifel upgraded Snap Inc. to Hold from Sell on February 6, retaining a $5.50 target price as it considers the stock’s risk/reward balanced at current levels. Q4 results revealed global DAU down 0.6% to 474M, North America DAU down 4.1% to 94M, with ad revenue rising 5% YoY to $1.48B.
1. Stifel Rating Upgrade
On February 6, Stifel elevated Snap from Sell to Hold while maintaining its one-year price target at $5.50. The firm cited a more balanced risk/reward profile given the stock’s 37% year-to-date decline and believes recent headwinds are largely priced in.
2. Q4-2025 User and Revenue Trends
Snap’s Q4-2025 report showed global average daily active users fell 0.6% quarter-over-quarter to 474 million, driven by a 4.1% drop in North America to 94 million. Advertising revenue grew 5% year-over-year to $1.48 billion, contributing to total revenue of $1.72 billion, up 10%.
3. Perplexity Partnership Delay
Snap’s revenue uplift from a $400 million deal with Perplexity has been pushed into 2026 as final rollout plans remain unsettled. Stifel noted this delay, alongside slow ad growth and unclear user trends, has already been reflected in current share prices.