Post-Q1 stock volatile: mixed earnings (rev beat/EPS miss), Wells Fargo PT $6 EW on US DAU miss; GenAI/Perplexity offsets
Key Questions
What were Snap's Q1 2026 earnings results?
Snap reported Q1 2026 revenue of $1.72 billion, beating estimates by 10% year-over-year. However, EPS came in at $0.03, missing the $0.15 consensus estimate.
Why did Wells Fargo lower its price target on Snap?
Wells Fargo reduced its price target from $8 to $6 with an equal-weight rating due to a US DAU miss of 91 million versus 93 million consensus. The firm also noted Q2 de-risked by Snapchat+ and ad comps.
What is the recent performance of Snap's stock price?
Snap's stock reached $4.75 following a 12% rally driven by an Irenic surge, with RSI oversold and technical analysis indicating a bullish $8.50 target. It later showed volatility, with a -5.51% change and intraday high of $4.86.
What positive factors are highlighted for Snap's valuation?
Snapchat+ is projected at $1B with FCF of $437M and buyback potential; the stock appears cheap with PT $8+ and PEG 0.28. Simply Wall St estimates fair value at $7.92.
What is Jim Cramer's stance on Snap?
Jim Cramer is bearish on Snap, expressing disinterest in the stock.
Why is Snap still losing users?
Snap attributes user losses to its Android app performance, despite revenue beats like $298 million up 14% quarter-over-quarter.
What institutional activity is noted for Snap?
There are institutional inflows, with Assenagon increasing its position by 538%.
What key metrics should investors watch for Snap?
Investors should monitor Q2 guidance, KPIs, reserves, buyback announcements, 13F filings, options activity, technical analysis, and Android performance.
Q1 '26 4/16: rev $1.72B beat +10% YoY, EPS $0.03 miss vs $0.15 est; Wells Fargo PT $6 from $8 EW (US DAU 91M vs 93M cons, Q2 de-risked by Snap+/ad comps); stock $4.75 (+Irenic surge/12% rally, RSI oversold, TA $8.50 bullish); Snapchat+ $1B/FCF $437M/buyback; PT $8+ cheap/PEG 0.28; Simply Wall St $7.92 FV; Cramer bearish; institutional inflows. Watches: Q2 guide/KPIs/reserves/buyback/13F/options/TA/Android.