{"id":41112,"date":"2025-06-28T11:35:05","date_gmt":"2025-06-28T11:35:05","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/28\/snap-stock-3-reasons-why-it-looks-better-than-a-christmas-treat-right-now\/"},"modified":"2025-06-28T11:35:05","modified_gmt":"2025-06-28T11:35:05","slug":"snap-stock-3-reasons-why-it-looks-better-than-a-christmas-treat-right-now","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/28\/snap-stock-3-reasons-why-it-looks-better-than-a-christmas-treat-right-now\/","title":{"rendered":"Snap stock: 3 reasons why it looks better than a Christmas treat right now"},"content":{"rendered":"
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Snap Inc (NYSE: SNAP), the parent company of Snapchat, has endured a brutal comedown since its 2021 peak, with shares down nearly 90% from their all-time high.<\/p>\n

But beneath the rubble lies a social media firm quietly rebuilding its growth engine \u2013 and investors might want to take notice.<\/p>\n

From cutting-edge advertising technology to rapidly growing user engagement and a rock-bottom valuation, Snap stock is starting to look like a gift worth unwrapping.<\/p>\n

Ad-tech and AI: two major tailwinds for Snap stock<\/h2>\n

Snap\u2019s core business, digital advertising, was hit hard by Apple Inc 2021 privacy changes, which disrupted user tracking and ad targeting.<\/p>\n

But Snap didn\u2019t stand still. It rebuilt its ad infrastructure using machine learning, and the results are starting to show. <\/p>\n

In Q1 2025, app-install campaigns on Snapchat saw a year-on-year increase of 30% in conversions from Apple devices, signaling the new ad engine is gaining traction.<\/p>\n

The company also rolled out an automated bidding system that helps advertisers lower their cost-per-action while boosting return on ad spend. <\/p>\n

Early adopters have reportedly seen a 16% boost to returns and a 32% decline in cost-per-action.<\/p>\n

Meanwhile, Snap\u2019s Sponsored AI Lenses \u2013 augmented reality ads powered by generative AI \u2013 are driving deeper engagement and brand interaction.<\/p>\n

According to Zacks Equity Research, these immersive formats can boost impressions by up to 45% in a single day, adding to the list of reasons to buy Snap stock at current levels.<\/p>\n

Revenue diversification to help SNAP shares in 2025<\/h2>\n

Investors should note that Snapchat\u2019s user base looks far from saturated in 2025. <\/p>\n

The social media app averaged 460 million DAUs this year in Q1 \u2013 a record high \u2013 helping a great deal in keeping advertisers interested in SNAP.<\/p>\n

At the same time, the NYSE listed firm remains fully committed to diversifying its revenue beyond advertising as well, with initiatives like Snapchat+ that now boasts nearly 15 million subscribers and is on a $600 million annualised run rate.<\/p>\n

Additionally, Snap Inc is seeing traction with its \u201cMy AI\u201d chatbot powered by the Gemini models. <\/p>\n

A 55% year-on-year increase in My AI’s daily active users in the first quarter suggests the company\u2019s artificial intelligence investments are resonating well with the users.<\/p>\n

Together, these innovations aimed at diversifying beyond traditional ad revenue and building a more resilient business model could unlock significant further upside in SNAP shares moving forward.<\/p>\n

Snap stock is trading at a mouthwatering valuation<\/h2>\n

Perhaps the most compelling reason to consider loading up on Snap stock right now is its valuation. <\/p>\n

At its 2021 peak, Snap traded at a sky-high price-to-sales (P\/S) ratio of 40.<\/p>\n

Today, that figure has collapsed to just 2.5 \u2013 near the lowest in the company\u2019s public history. <\/p>\n

And that\u2019s despite a 14% revenue growth and a whopping 137% increase in adjusted EBITDA in Q1.<\/p>\n

Snap\u2019s gross margins remain healthy, and its operating expenses grew just 2% in the latest quarter. <\/p>\n

While the company is still posting GAAP losses, it\u2019s nar<\/a>r<\/a>owing them significantly<\/a>. <\/p>\n

For long-term investors, this combination of improving fundamentals and depressed valuation could be a rare opportunity.<\/p>\n

The post Snap stock: 3 reasons why it looks better than a Christmas treat right now<\/a> appeared first on Invezz<\/a><\/p>\n

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Snap Inc (NYSE: SNAP), the parent company of Snapchat, has endured a brutal comedown since its 2021 peak, with shares down nearly 90% from their all-time high. But beneath the rubble lies a social media firm quietly rebuilding its growth engine \u2013 and investors might want to take notice. From cutting-edge advertising technology to rapidly <\/p>\n","protected":false},"author":1,"featured_media":41113,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-41112","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41112"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41113"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}