Snap Retail Investors Upbeat Ahead Of Q1 Report But Analysts Cautious Due To Tariff Impact, Engagement Trends

Social media firm Snap, Inc. (SNAP) will kickoff the communication services industry earnings this week with its quarterly report on Tuesday after the market closes.

On Stocktwits, retail sentiment toward the Snap stock remained ‘extremely bullish’ (76/100), with the upbeat mood accompanied by ‘high’ message volume.

The stock has nearly 230K followers on the platform. By late Sunday, the 24-hour message volume on the Snap stream had increased 600%. 

A bullish watcher said they would accumulate the stock if it drops below $8.50. They noted that notwithstanding the 14% rally in the Snap stock since last Monday, it still traded 34% below the analysts’ average price target.

Another user said the technical setup was interesting, as the stock has had a second bullish crossover on a weekly stochastic chart.

According to the Finchat-compiled consensus, Snap is expected to report adjusted earnings per share (EPS) of $0.04 and revenue of $1.35 billion, up from $0.03 and $1.19 billion, respectively, for the year-ago quarter.

Despite a double-beat reported for the fourth quarter in early February, the stock pulled back in post-earnings reaction.

On Friday, Citizens JMP Securities analyst Andrew Boone reduced the price target for Snap stock to $12 from $14 but maintained an ‘Outperform’ rating, The Fly reported.

The analyst said the company’s ability to capture engagement with short-form video effectively is looking increasingly unlikely.

The analyst believes Snapchat's available strategy choices are more limited.

In a note released last week, Morgan Stanley analyst Brian Nowak said tariff impact on digital ads will be more pronounced for smaller companies such as Snap, Reddit (RDDT) and Pinterest (PINS).

Factoring in the expectation, Nowak reduced Snap's 2025 and 2026 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates. Therefore, the analyst reduced his price target for the stock to $8 from $10.

Snap stock ended Friday’s session up 2.52% at $8.54 amid the broader market rally but is down about 21% year-to-date. 

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