Snap Inc. (NYSE:SNAP) has recently been highlighted as one of the 13 Best American Penny Stocks to Invest In by Piper Sandler. Following the company’s latest earnings report, Piper Sandler decided to lower its price target on Snap Inc. (NYSE:SNAP) from $10 to $8 while maintaining a Neutral rating on the stock.
The earnings report showed that Snap Inc. (NYSE:SNAP) exceeded Piper Sandler’s revenue expectations by 1% and its EBITDA was 18% higher than forecasted. However, despite these positive results, Piper Sandler identified weaker trends in daily active users (DAUs) and projected higher expenses in the upcoming year as reasons for the price target reduction. The research firm also decreased its fiscal year 2026 EBITDA estimate for Snap Inc. (NYSE:SNAP) by 9%.
In addition to Piper Sandler, Truist Securities also revised its price target on Snap Inc. (NYSE:SNAP) from $11 to $8 and maintained a Hold rating on the stock. This adjustment came after the company’s Q4 2025 results and Q1 2026 guidance, which Truist Securities deemed to be in line with expectations. The research firm commended Snap Inc. (NYSE:SNAP) for its effective cost management amidst a 5% growth in advertising.
Snap Inc. (NYSE:SNAP) is a prominent American technology and social media company known for developing and maintaining products such as Snapchat, Lens Studio, and Spectacles. While the company shows promise as an investment, there are other AI stocks with greater upside potential and lower downside risks.
For investors seeking undervalued AI stocks with significant growth potential, particularly in light of current economic trends, it may be worthwhile to explore alternative investment options. One such opportunity is detailed in a free report on the best short-term AI stock.
For more insights on investment opportunities in the AI sector, readers can also check out articles on 15 AI Stocks That Are Skyrocketing and 12 Best Oil and Gas Stocks to Buy Right Now. As always, it is important to conduct thorough research and due diligence before making any investment decisions.
Disclosure: None. This article was originally published on Insider Monkey.
