SNAP
A rare thumbs-up from Wall Street
Snap just got a little more love from BMO Capital, which raised its price target to $15 from $13 and kept an Outperform rating on the stock. Not exactly a parade, but for a company that’s spent years trying to prove it can be more than a shiny app with a messy profit story, it’s a meaningful nod.
Why the Street is paying attention
The catalyst here isn’t some moonshot product launch. It’s the boring stuff that actually moves the needle: Snap’s restructuring, which cuts about 1,000 jobs and is supposed to save $500 million a year. Add in the company nudging up its Q1 revenue outlook, and suddenly the “profitable growth” pitch sounds less like investor-relations poetry and more like a plan.
From bruised to believable
That matters because Wall Street has been skeptical for a while. Snap has long had the kind of valuation that asks a lot from the future, while the business itself kept making investors sweat. Now the company says it’s chasing 60%+ gross margins by 2026, and BMO seems to believe the cost discipline gives that target a little more credibility.
The catch, because there’s always a catch
This is still Snap, which means execution risk is doing laps in the background. The company needs to balance layoffs, AI investment, and ad growth without tripping over its own shoelaces. But if management keeps delivering, the stock could keep getting re-rated higher — especially with the shares already reacting sharply to the restructuring news.
Big picture: Snap is trying to turn a messy makeover into a real margin story, and at least one major analyst thinks the glow-up might actually be working.