Stifel Likes SNAP at its Current Price Levels

Snap Inc. (NYSE:SNAP) is 1 of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 6, Stifel upgraded its standing connected Snap to a “Hold” from “Sell”. Despite the standing upgrade, the steadfast did not alteration its people terms of $5.50 connected the shares. In a probe enactment to investors, the steadfast said that Snap’s risk/reward illustration is present much tenable astatine existent stock prices. They besides judge that the atrocious news, namely declining North America idiosyncratic base, timid advertizing growth, and unclear specifics connected the company’s statement with Perplexity, person already been priced in.

Photo by Thought Catalog connected Unsplash

This standing alteration comes connected the heels of Snap’s Q4-2025 results, which were released connected February 4. The study showed that mean regular progressive users (DAU) dropped 0.6% QoQ globally (from 477 cardinal to 474 million). The diminution was adjacent much important successful North America, wherever DAU fell 4.1% QoQ (from 98 cardinal to 94 million).

Snap’s advertizing gross successful the 4^th quarter, meanwhile, grew 5% YoY to $1.48 cardinal (from $1.41 billion). This conception was a resistance connected wide gross growth, which grew 10% YoY to $1.72 cardinal (from $1.56 billion).

Finally, Snap noted that the gross uplift from the Perplexity deal, announced past November 2025, volition apt beryllium delayed due to the fact that the 2 sides person yet to finalize a broader rollout plan. For reference, this is what was initially said astir the agreement:

Under the agreement, Perplexity volition wage Snap $400 cardinal implicit 1 year, done a operation of currency and equity, arsenic we execute planetary rollout. Revenue from the concern is expected to statesman contributing successful 2026.

Stifel believes that Snap’s banal price, which has fallen 37% year-to-date, already reflects these setbacks. Other firms covering Snap look to stock this sentiment, arsenic the implied upside (based connected the median expert people terms of $8.00, per CNN) remains precocious astatine 53.26%, contempt a bid of caller people terms cuts.

Snap Inc. (NYSE:SNAP) is simply a exertion institution operating successful North America, Europe, and internationally. The institution offers Snapchat, a ocular messaging exertion with assorted tabs including Camera, ocular messaging, Snap Map, Stories, and Spotlight.

While we admit the imaginable of Snap Inc. (NYSE: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.