From Hot Streak to Cold Feet: Snapchat’s Stock Is in Serious Trouble

Snapchat, the pioneer of disappearing messages, is now that awkward kid who peaked in high school and can't stop talking about the "good ol' days." If you’ve been too busy doom-scrolling on TikTok to notice, Snap’s rise to fame has crashed harder than my friend’s dreams of becoming a crypto millionaire—it looked promising at first, but now it's just awkward silence and regret. The company's stock? Well, it’s down a brutal 48% this year, like it slipped on a banana peel and never quite recovered. You could say Snap's on a downward spiral, but at least it's still got those dog-ear filters to mask the pain.

Let’s rewind though. Snap Inc. debuted on the stock market in 2017 with grand promises of being the next big thing. Their stock soared to over $80 a share just three years ago, but now finds itself below $9. CEO Evan Spiegel recently sent a letter to employees marking the company’s 13th anniversary, and let’s just say it was kind of depressing. Spiegel admitted that Snapchat is struggling to stay afloat, especially in its biggest market: the US.

You know the saying—If at first you don’t succeed… run some more ads. It’s pretty obvious things are bad when the CEO’s best strategy is to double down on ads—yes, the same ads that we all complain about like they're unsolicited cat videos. Snap is rolling out new ways to shove ads into our lives. Get ready for “Sponsored Snaps” popping up in your chat inbox. Now you can scroll past ads right alongside your friends’ endless brags about their vacation.

It kind of feels like Snapchat is having a clearance sale, but the only thing going fast is investor confidence. But never fear… CEO Evan Spiegel is throwing his company’s resources at augmented reality (AR) and smart glasses. Remember those “Spectacles” from a few years back? The ones that you can buy out of a vending machine that looks like a minion? Well, Snapchat’s putting even more money into that AR adventure, hoping it will be one of many ideas they have to turn things around.

Here’s the thing: While Snapchat’s user base is still growing—now boasting 432 million daily active users—most of this growth is happening outside the US. The company’s average revenue per user in the US is $7.67, significantly higher than the $1.02 generated from users in other regions. This crazy gap highlights Snapchat’s challenge in turning its international audience into one that actually makes money.

To add insult to injury, Snapchat’s revenue growth is lagging behind competitors like Meta (formerly Facebook) and TikTok. Spiegel admits the company’s advertising business is lagging behind its rivals, and the stock reflects that harsh reality. Despite launching new ad formats and investing in futuristic tech, Snap’s current strategy feels like when you try to make a 3-pointer at the county fair—it’s impossible when the ball is bigger than the goal. 

In short, Snapchat’s trying to navigate a hurricane in a pool floatie with a hole in it. More ads, gimmicky AR glasses, and a map feature drowning in promos probably won’t save them from taking on water. Spiegel and his crew are frantically patching the ship, but let’s be real—it’s like slapping duct tape on the Titanic. 

But, but, but…

While Snapchat’s out here trying to revive its glory days with AR glasses and ad overload, our Stocks.News alert from yesterday is absolutely ROARING, folks. We’re talking another +167.37% peak move in under 24 hours.

The best part? This train's still gaining speed. With over 154,000 shares of this stock currently sold short, we might be witnessing a viral short squeeze as the day unfolds. So, if you haven’t already, I highly recommend clicking here to upgrade ASAP.

Don’t say I didn’t warn you! Stay sharp and stay tuned, friends! Until next time…

Stocks.News holds positions in Meta and Snapchat.