Snap Inc.'s stock has stabilized around $5 in late February 2026, closing at $4.97 on February 24 after a 0.81% gain, as the social media company benefits from record Snapchat+ subscribers and improved profitability in its latest quarter, though persistent declines in daily active users and competitive ad pressures weigh on sentiment.

Snap Inc
Snap Inc

As of February 24, 2026, Snap (NYSE: SNAP) traded in a session range of $4.91 to $5.05 with volume of approximately 30 million shares. The shares have fallen sharply from 2025 highs near $10.59, down roughly 52% over the past year and trading near the lower end of their 52-week range from $4.65 to $10.59. Market capitalization hovers around $8.3 billion to $8.4 billion, reflecting a valuation at about 1.5 times trailing sales—levels some analysts view as undervalued given growth in subscriptions and margins.

The recent trading reflects digestion of Snap's fourth-quarter and full-year 2025 financial results released February 4, 2026. Revenue reached $1.716 billion in Q4, up 10% year-over-year, while full-year revenue hit $5.931 billion, an 11% increase from 2024. Gross margin expanded to 59% in Q4, up 4 percentage points sequentially and 2 points year-over-year, driven by higher-margin subscription revenue and ad efficiency gains. The company posted positive net income of $45 million in Q4, compared to $9 million the prior year, and adjusted EBITDA rose to $358 million from $276 million.

A key highlight was Snapchat+ surpassing 25 million paid subscribers, up significantly from prior periods, with subscription revenue contributing to a $1 billion annualized run rate in direct revenue. Management emphasized the subscription model's structurally higher margins, targeting gross margins above 60% in 2026. Free cash flow turned positive, and the company highlighted AI-driven ad improvements and AR features as growth drivers.

Despite the positives, challenges persist. Daily active users have shown softness in some regions amid competition from TikTok and Meta platforms. Advertising revenue, still the core business, grew more modestly at 5% in Q4 to $1.48 billion. Insider selling, including a large block from the chief technology officer earlier in February, added to downward pressure, with shares dipping to all-time lows around $4.65 mid-month before stabilizing.

Analysts remain divided. Consensus leans toward Hold, with average 12-month price targets around $7-$8—implying 40-60% upside from current levels—though some firms have slashed targets amid advertiser competition and hiring concerns. Bullish views cite the subscription ramp, margin expansion, and potential for AR hardware like Specs in 2026 as catalysts for recovery. Optimistic commentary suggests the stock could soar 200% from depressed levels if AI ads and global expansion accelerate, while critics question whether subscriptions can offset core ad weakness long-term.

The company filed its 10-K annual report on February 5, 2026, providing detailed disclosures on operations, risks, and strategy. No major new announcements emerged in the following weeks, with focus shifting to execution on 2026 guidance and preparations for the next earnings report, expected in late April for Q1 2026.

Snap continues investing in AI and augmented reality, integrating generative features into Snapchat and exploring consumer hardware opportunities. The subscription business offers diversification from volatile ad markets, with higher retention and predictability. Yet the stock's trajectory remains tied to proving user engagement recovery and sustained profitability in a competitive social media landscape.

As February ends, Snap navigates a pivotal moment. Record subscriber milestones and margin improvements provide a foundation for optimism, while near-term headwinds from ad competition and macro uncertainty keep shares volatile. Investors eyeing the low valuation see potential for a rebound if execution on AI and subscriptions continues, positioning Snap as a high-risk, high-reward play in digital media.