Guggenheim Lowers Snap (SNAP) Outlook on Projected 2026 Usage Hurdles and Ad Growth Lag

Snap Inc. (NYSE:SNAP) is 1 of the AI stocks nether $20 to bargain now. On December 19, Guggenheim expert Michael Morris lowered the terms people connected Snap to $8.50 from $9, portion keeping a Neutral standing connected the shares. Moving into 2026, Morris noted that capitalist sentiment is being dampened by anticipated obstacles to usage maturation and halfway advertizing show that lags down manufacture peers. Consequently, the steadfast reduced its regular progressive idiosyncratic projections for H1 2026, signaling a content that these operational difficulties volition stay a origin beyond the abbreviated term.

In Q3 2025, Snap achieved a important milestone by reaching 477 cardinal regular progressive users/DAUs, which was an 8% summation year-over-year, portion monthly progressive users/MAUs grew 7% to 943 million. Total gross for the 4th roseate 10% to $1.51 billion, driven by a operation of a 5% summation successful advertizing gross ($1.32 billion) and a monolithic 54% leap successful Other Revenue ($190 million), which is chiefly powered by the Snapchat+ subscription service. Snap Inc. (NYSE:SNAP) demonstrated a beardown way toward sustained profitability by reducing its nett nonaccomplishment by implicit 30%, bringing it down to $104 cardinal from $153 cardinal successful the erstwhile year.

Snapchat remains a ascendant unit successful AR, with implicit 350 cardinal regular users engaging with AR lenses. The platform’s creator ecosystem has present surpassed 400,000 developers who person built much than 4 cardinal lenses. The institution is besides doubling down connected GenAI; implicit 500 cardinal users person interacted with Gen AI lenses, specified arsenic the fashionable AI Face Swap, much than 6 cardinal times. Additionally, Snap Inc. (NYSE:SNAP) announced Snap OS 2.0, which is simply a bundle instauration for its next-generation AR Spectacles, which are slated for a nationalist debut successful 2026.

Snap Inc. (NYSE:SNAP) operates arsenic an planetary exertion company. The institution offers Snapchat, which is simply a ocular messaging exertion with assorted tabs. The institution integrates GenAI and ML crossed its level for interactive ‘My AI’ chatbot experiences, real-time AR Lenses, and blase ad-targeting tools.

While we admit the imaginable of SNAP arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.