Snap Inc. (NYSE: SNAP) shares rose 7% on June 27, 2025, following positive remarks from a research institution regarding the company’s direct response advertising improvements. This development positions Snap to potentially exceed the consensus earnings estimate for the current quarter. Despite the recent uptick, SNAP’s stock remains down 20% year-to-date, trading around $9.
Key financial indicators reveal a pricing advantage, with Snap’s price-to-sales ratio at 2.6 compared to the S&P 500’s 3.1. Over the past three years, Snap’s revenue has grown at an average rate of 9.4%, while the S&P 500 saw a 5.5% increase. In the last quarter, Snap reported revenues of $1.6 billion, a 14.4% rise year-over-year, outpacing the S&P 500’s 4.8% growth.
However, Snap’s profitability remains weak, with an operating income of -$787 million, translating to an operating margin of -14.7%. The company holds $4.2 billion in debt against a market capitalization of $15 billion, resulting in a moderate debt-to-equity ratio of 30%. Despite facing challenges in downturn resilience, Snap’s financial stability appears strong, supported by a significant cash-to-assets ratio of 42.5%.
