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Here's Why Snap (SNAP) Fell More Than Broader Market
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Snap (SNAP - Free Report) ended the recent trading session at $7.78, demonstrating a -7.16% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 2.71%. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Shares of the company behind Snapchat witnessed a gain of 14.95% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is slated to reveal its earnings on November 5, 2025. The company is predicted to post an EPS of $0.06, indicating a 25% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 8.82% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.26 per share and revenue of $5.89 billion, indicating changes of -10.34% and +9.78%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.72% rise in the Zacks Consensus EPS estimate. Right now, Snap possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 32.7 right now. This valuation marks a premium compared to its industry average Forward P/E of 30.41.
Also, we should mention that SNAP has a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Snap (SNAP) Fell More Than Broader Market
Snap (SNAP - Free Report) ended the recent trading session at $7.78, demonstrating a -7.16% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 2.71%. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Shares of the company behind Snapchat witnessed a gain of 14.95% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is slated to reveal its earnings on November 5, 2025. The company is predicted to post an EPS of $0.06, indicating a 25% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 8.82% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.26 per share and revenue of $5.89 billion, indicating changes of -10.34% and +9.78%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.72% rise in the Zacks Consensus EPS estimate. Right now, Snap possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 32.7 right now. This valuation marks a premium compared to its industry average Forward P/E of 30.41.
Also, we should mention that SNAP has a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.