Should I buy Snap stock in 2025? Insights for South African Investors

What is Snap?

How much is the Snap stock?

The price of Snap stock is falling this week. Currently trading at $8.28, Snap Inc. has seen a 0.72% decline in the past 24 hours and is down 1.78% over the last week. The company holds a market capitalization of $13.94 billion, with an average 3-month trading volume of 35.96 million shares. With no P/E ratio available due to ongoing losses, Snap does not pay a dividend, and its stock beta stands at 0.61, indicating lower volatility than the broader market. While recent price declines reflect macroeconomic uncertainties, the combination of rising user numbers and steady innovation may offer long-term potential for South African investors willing to tolerate short-term swings.

Our full analysis of the Snap stock

Having thoroughly reviewed Snap Inc.’s latest quarterly results and scrutinized the equity’s performance over the past three years, we have leveraged multiple analytical sources—spanning financial metrics, technical signals, sectoral data, and peer analysis—through proprietary models to distill a robust perspective. As Snap navigates dynamic sector headwinds and transforms its operational fundamentals, the question arises: Why might Snap stock once again become a strategic entry point into the global social media and augmented reality sector in 2025?

Recent Performance and Market Context

Despite a challenging macro environment, Snap’s share price currently trades at $8.28, bringing its market capitalization to $13.94 billion. The stock has corrected meaningfully from its 52-week highs of $17.33, now sitting closer to the lower end of that range at $7.08, representing a 45.38% decline year-on-year and nearly 30% over the past six months. Such a retracement has, however, unfolded in tandem with sector-wide volatility and broader risk-aversion across growth stocks on the NYSE.

Crucially, Snap remains resilient in its core metrics: Q1 2025 revenue reached $1.36 billion (+14% YoY), with daily active users (DAU) up 9% to 460 million and monthly users now crossing the 900 million threshold. While a temporary post-earnings selloff reflected market reactions to the absence of Q2 guidance, the company notably beat analyst EPS expectations (reporting -$0.08 vs. -$0.13 consensus). These financial achievements signal not just operational steadiness but also scope for renewed investor interest—especially as Snap maintains a 5-year beta of just 0.61, suggesting lower volatility versus the broader market.

On the sectoral front, the digital advertising and augmented reality (AR) segments are poised for a strong cyclical rebound in 2025, fuelled by innovation and expected improvements in economic conditions. This creates fertile ground for Snap—given its youthful user base and heavy investments in AR—to outperform legacy social media peers.

Technical Analysis

From a technical perspective, Snap is demonstrating noteworthy consolidation characteristics. The 14-day Relative Strength Index (RSI) currently hovers between 46 and 49, placing the stock in a neutral zone—neither overbought nor oversold—while the Moving Average Convergence Divergence (MACD) recently turned slightly negative (-0.01). This pattern often precedes significant directional breakouts, especially after extended corrections.

• Support and resistance: Recent price action shows strong support around $8.21, with resistance emerging at $8.47–$8.53.
• Momentum: The technical structure suggests stabilization above critical support, limiting downside risk and potentially setting the stage for a medium-term bullish reversal, should sentiment or catalysts materialize.
• Volume: Sustained average daily trading (35.96 million shares) confirms active institutional and retail engagement, further reinforcing liquidity and readiness for heightened volatility or upward moves.

Investors seeking technical entry points will find Snap’s proximity to both historical support and neutral momentum indicators compelling, particularly if the sector rallies or Snap surprises with positive operational news.

Fundamental Analysis

Snap’s improving fundamentals warrant focused attention from growth-oriented investors:

• Revenue growth: Q1 2025 saw revenues climb 14% YoY—beating consensus—even amid sector uncertainty. The company's DAU now stands at a robust 460 million (+9% YoY), affirming deep user engagement and platform stickiness.
• Profitability: Operating losses are narrowing ($140 million net loss in Q1 2025, an impressive improvement versus $305 million in the prior year). The EPS outcome (-$0.08 versus anticipated -$0.13) evidences stronger cost controls and margin evolution.
• Valuation: While still loss-making (PER not meaningful), Snap’s price-to-sales ratio and consensus target price imply a significant discount; consensus sees 34.4% upside with a target of $11.17. Its shares are currently trading nearly 67% below certain intrinsic valuations—a rare window for long-term allocators who can stomach short-term turbulence.
• Structural strengths:
• Innovation: Snap remains a world leader in AR, reporting 84% annualized AR revenue growth.
• Market share: It holds a dominant position among Gen Z and Millennial consumers, giving Snap both cultural relevance and a long runway for future monetization.
• Brand: Globally recognized, especially in expansion markets outside the US.

In summary, Snap’s track record across revenue expansion, platform innovation, and narrowing losses provide strong support for anticipated multi-year growth, particularly as AR and direct-to-consumer advertising offer scalable monetization levers.

Volume and Liquidity

Snap’s robust average trading volume—nearly 36 million shares daily—demonstrates significant market engagement and underscores underlying confidence in the share’s investibility.

• High float: With approximately 1.07 billion shares freely tradable, Snap’s float ensures ample price discovery and responsiveness to both sector- and company-specific catalysts.
• Market confidence: Consistent high trading volumes typically accompany periods of inflection and reflect the enduring interest of both short- and long-term market participants.

For ZA-based investors and global traders alike, the liquidity profile enhances Snap’s suitability for dynamic portfolio strategies.

Catalysts and Positive Outlook

Multiple catalysts reinforce an optimistic outlook for Snap into 2025 and beyond:

• Augmented reality (AR): Snap’s relentless focus on AR, paired with 84% AR revenue growth, positions the company to capitalize on the next wave of consumer adoption—bridging advertising, commerce, and entertainment.
• User base expansion: User metrics continue trending positively; with a targeted 468 million DAU for Q2 2025, Snap is building one of the world’s largest platforms for young, digital-first consumers.
• Monetization innovation: Efforts to better monetize small- and medium-sized business advertising, as well as international expansion into high-growth markets, bolster forward revenue visibility.
• Subscription business: Snap’s premium Snapchat+ service strengthens recurring revenues and enhances platform engagement.
• Technological leadership: Ongoing enhancements to AR filters, commerce integrations, and creator tools keep the platform ahead of global rivals in key product areas.
• Sector tailwinds: Broader improvements in digital advertising spend and economic stabilization are likely to lift performance in Snap’s core revenue engines.

These drivers suggest Snap is poised to transition from recovery to outperformance—positioned at the intersection of youth culture, immersive technology, and mobile-first advertising.

Investment Strategies

Given the current valuation and operational catalysts, Snap presents a range of strategies for prospective investors:

• Short-term:
• Technical traders may find the present price—a whisker above solid support and with neutral RSI/MACD—an attractive tactical entry, especially if seeking to benefit from a technical rebound or upcoming news on user growth.
• Trading ahead of sector rallies or key product launches (such as AR updates or new features for SMBs) could offer near-term upside.
• Medium-term:
• Investors anticipating a recovery in digital advertising are well placed to consider accumulating positions as macro uncertainties fade.
• The stock’s compressed valuation versus consensus (over 34% implied upside) and improving loss trajectory make holding through multiple quarters compelling.
• Long-term:
• Snap’s intrinsic strengths—AR dominance, youthful demographic, and expanding monetization channels—augur well for structural outperformance over a multi-year window.
• For those able to withstand short-term volatility, the current discount provides a rare entry point to a leader redefining social media and digital engagement.

Positioning near technical lows, or prior to anticipated operational catalysts, appears especially advantageous for portfolios seeking asymmetric risk/reward in the US tech sector.

Is it the Right Time to Buy Snap?

Summing up, Snap offers a confluence of compelling factors: a robust and growing user base, revitalized revenue expansion, industry-leading AR innovation, and clear momentum toward profitability. The technical setup signals stabilization and potential reversal, while sustained liquidity points to enduring market confidence. Trading at a significant discount to consensus valuations and benefiting from multiple near-term and strategic catalysts, Snap seems to represent an excellent opportunity for sophisticated investors seeking exposure to the next phase of the global tech and consumer engagement cycle.

In an environment where structural growth meets tactical value dislocation, Snap stands out as a stock that justifies renewed and enthusiastic consideration—and may be poised for a new bullish phase as 2025 progresses. For investors in ZA and globally, the convergence of technical, fundamental, and strategic positives signal that Snap could form a cornerstone of forward-looking technology portfolios in the months ahead.

How to buy Snap stock in South Africa?

Buying Snap Inc. (SNAP) shares online is simple, secure, and accessible to South African investors through reputable, regulated brokers. With just a few steps, you can gain exposure to one of the leading social media and augmented reality companies listed on the NYSE. There are two primary ways to invest: direct spot (cash) purchase of SNAP shares, and trading price movements via Contracts for Difference (CFDs). Each method has distinct advantages regarding ownership, leverage, and costs. To help you make the best choice, you’ll find a detailed broker comparison further down this page.

Spot (Cash) Buying

A cash or spot purchase means buying Snap shares outright on the stock market, becoming a real shareholder entitled to potential gains (but not dividends, as Snap currently pays none). Through local or international brokers licensed for South Africans, you can place orders in US dollars, with the platform converting from rands (ZAR) if needed. Typical fees include a fixed commission per order—commonly around R100 to R200 (about $5 to $10) depending on the broker, plus possible currency conversion charges.

Example

Suppose Snap trades at $8.28 per share. With $1,000 (roughly R18,500), you could buy around 120 shares, after accounting for a brokerage fee of about $5.
✔️ Gain scenario:
If the share price rises by 10%, your investment is now worth $1,100.
Result: +$100 gross gain, a +10% return on your original stake.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Snap’s price movements without owning the underlying shares. CFDs are available with local and global brokers serving SA clients. Instead of a fixed commission, brokers earn via the spread (difference between buy and sell price) and charge overnight financing fees if you hold positions beyond a day. The big draw is leverage, allowing you to control a larger position than your deposit.

Example

You open a CFD position on Snap with a R18,500 ($1,000) margin and apply 5x leverage. This gives you exposure to $5,000 worth of Snap shares.
✔️ Gain scenario:
If the SNAP price rises by 8%, your position gains 40% (8% × 5).
Result: +$400 profit on your R18,500 ($1,000) stake—excluding fees like spread and overnight funding.

Final advice

Before you invest, it’s essential to carefully compare brokers’ fees, trading platforms, and customer support, as costs and terms can vary widely. Choosing the right method—spot buying for direct ownership or CFDs for flexible, leveraged strategies—depends on your investment goals and risk appetite. A full broker comparison is available further down the page to support your decision. Happy investing!

Our 7 tips for buying Snap stock

The latest news about Snap

Snap Inc. reported first quarter 2025 revenue growth of 14% year-over-year and user growth of 9%. The company posted $1.36 billion in Q1 revenue, exceeding consensus estimates and demonstrating resilient business momentum despite headwinds in the broader digital advertising sector. Daily active users (DAU) rose to 460 million, and the net loss improved significantly to $140 million versus $305 million in Q1 2024, with an EPS of -$0.08 beating expectations. This operational progress, particularly in monetization and user engagement, is strategically relevant for investors in ZA, as South African brands and advertisers continue expanding their footprint on international platforms with large Gen Z and Millennial user bases.

Snap’s ongoing global expansion and focus on emerging market monetization present positive signals for South African stakeholders. Although Snap does not host a local South African office, its aggressive push to grow Snapchat’s presence and monetization in emerging markets aligns with increased African user engagement and advertising opportunities. International user growth and mobile-centric products position Snap as a valuable vehicle for South African advertisers seeking digital reach across Africa and beyond, leveraging rising smartphone penetration and social media engagement.

The company’s innovations in augmented reality (AR) and Snap’s AR revenue growth of 84% year-over-year are contributing to improved sentiment. Snap’s leadership in AR, with platform revenues accelerating sharply, positions it as a technical innovator—attractive for South African creative agencies and marketers testing immersive campaigns. The adoption of AR-advertising technology facilitates new marketing formats tailored to millennial and Gen Z users, an audience segment that is of growing importance in South African markets both from a commercial and cultural perspective. This technology edge may reinforce Snap’s distinct value versus regional and global competitors, including Meta and TikTok.

Despite macroeconomic uncertainty leading to withdrawn Q2 guidance, the consensus target price implies significant upside potential. Snap withdrew Q2 2025 guidance citing global macro challenges, but the consensus analyst price target of $11.17 represents 34.4% upside from current levels. Medium-term forecasting by respected analysts still points to annualised earnings growth above 46%, which indicates confidence in monetisation strategies (notably Snapchat+ and SMB-focused products) that will also benefit internationally active investors and institutional managers in South Africa.

Liquidity, technicals, and risk metrics currently present a neutral risk profile with potential for volatility and rebound. With a 52-week price range of $7.08 to $17.33 and monthly average traded volumes near 36 million shares, Snap offers South African investors a liquid US tech option for portfolio diversification. Technical indicators are neutral, with RSI in the 46–49 range and MACD slightly negative, while the stock trades at a substantial discount to estimated fair value. The low beta of 0.61 may appeal to ZA-based portfolios seeking lower volatility relative to global equities. As such, Snap’s progress and its robust product pipeline could provide South African investors with positive exposure to global digital innovation themes.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.