We came across a bullish thesis on Snap Inc. on topsecretstocks’s Substack. In this article, we will summarize the bulls’ thesis on SNAP. Snap Inc.’s share was trading at $6.93 as of January 30th. SNAP’s forward P/E was 17.89 according to Yahoo Finance.
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Snap Inc. operates as a technology company in North America, Europe, and internationally. SNAP has solidified its position as a camera-first platform, with the Snapchat app driving nearly all revenue through digital advertising, including Snap Ads, Sponsored Lenses, and Geofilters targeting Gen Z and Millennials.
Supplementary efforts in hardware (Spectacles) and e-commerce remain nascent, but the core app continues to engage a massive, growing audience. A transformative shift since the 2017 IPO has been the success of Snapchat+, which reached 17 million subscribers in late 2025, providing a high-margin revenue cushion that reduces Snap’s reliance on volatile ad markets.
Daily active users hit 477 million in Q3 2025, up 8% year-over-year, while monthly active users reached 943 million, putting Snap on a clear trajectory toward 1 billion users. Although North America remains the most profitable region, the Rest of World segment—led by India and Pakistan—is the fastest-growing user base.
Financially, Snap posted its most stable results in years, with Q3 2025 revenue of $1.51 billion, a 10% increase YoY, net losses reduced by over 30% to $104 million, and Adjusted EBITDA reaching $182 million (12% margin). Its AI and AR strategy is reshaping the platform, with generative AI lenses used billions of times by over 500 million users and the Perplexity AI partnership contributing $400 million over one year.
New ad formats like Sponsored Snaps have driven direct response revenue up 8% YoY. Innovation continues with tools like “Animate It” for video generation. While analysts remain largely neutral, Snap’s combination of Snapchat+, AI-driven advertising, and user growth has stabilized its business, with the next major catalyst being whether Spectacles can transition from niche hardware to a mainstream product, unlocking further upside potential.
Previously, we covered a bullish thesis on Snap Inc. (SNAP) by LongYield in May 2025, which highlighted Q1 revenue growth to $1.363 billion, Snapchat+ reaching 15 million subscribers, narrowing net losses, and AI and AR investments to enhance advertising. SNAP’s stock price depreciated by approximately 11.49% since our coverage due to uncertainty from lack of guidance and macroeconomic headwinds. topsecretstocks shares a similar perspective but emphasizes broader user growth, Snapchat+ hitting 17 million, and AI/AR initiatives as stabilizing factors.
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