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Here's Why Snap (SNAP) Fell More Than Broader Market

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In the latest close session, Snap (SNAP - Free Report) was down 1.81% at $7.60. The stock's change was less than the S&P 500's daily loss of 0.99%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq lost 1.58%.

The company behind Snapchat's stock has climbed by 0.39% in the past month, falling short of the Computer and Technology sector's gain of 7.77% and the S&P 500's gain of 3.59%.

Market participants will be closely following the financial results of Snap in its upcoming release. The company plans to announce its earnings on November 5, 2025. In that report, analysts expect Snap to post earnings of $0.06 per share. This would mark a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 8.83% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.26 per share and a revenue of $5.89 billion, signifying shifts of -10.34% and +9.88%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Snap. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.35% rise in the Zacks Consensus EPS estimate. Currently, Snap is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, Snap is presently trading at a Forward P/E ratio of 30.35. This indicates a premium in contrast to its industry's Forward P/E of 29.91.

We can additionally observe that SNAP currently boasts a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNAP's industry had an average PEG ratio of 2.16 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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