10 Best Low Priced Stocks to Invest in For the Long Term

3. Snap Inc. (NYSE:SNAP)

Stock Price as of May 6: $8.36

Market cap as of May 6: $13.7 billion

Number of Hedge Fund Holders: 44

Snap Inc. (NYSE:SNAP) operates as a technology company. Analyst John Blackledge from TD Cowen maintained a “Hold” rating on the company’s stock and gave a price objective of $9.00. The analyst’s rating is backed by a combination of factors, which include the company’s recent financial performance and future outlook. While Snap Inc. (NYSE:SNAP)’s management is optimistic regarding the long-term growth with the help of improvements in the ad platform and diversification of revenue sources, they have highlighted a cautious approach regarding investment over the near term, added Blackledge.

In Q1 2025, Snap Inc. (NYSE:SNAP)’s quarterly revenue rose 14% YoY due to the progress it made with its direct-response advertising solutions, continued momentum in driving performance for small and medium-sized businesses, and the growth of its Snapchat+ subscription business. Snap Inc. (NYSE:SNAP)’s continued investment in AR technology places it as a leader in the emerging field. With AR becoming more mainstream, the company’s early-mover advantage can result in strong growth opportunities. Easy Lens, an AI-powered tool simplifying Lens creation, went into early testing in mid-December and has been utilised to create more than 10,000 Lenses, garnering more than 2 billion impressions.

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q3 2024 investor letter. Here is what the fund said:

Snap Inc. (NYSE:SNAP): SNAP was a top detractor in the third quarter following a second quarter earnings report that fell short of high expectations. While the company reported strong Daily Active User (DAU) growth (432 million +10% year-over-year) and time spent watching content on the app (+25% year-over-year), revenue of $1.24 billion was below the midpoint of the company’s guidance and slightly below investor expectations. Management pointed to weakness in their Brand Advertising vertical, specifically highlighting demand for retail, technology, and entertainment advertising for slowing through the quarter. SNAP did exceed EBITDA expectations by $15 million due to better operating leverage, but guided third quarter EBITDA below expectations as the company plans to make some targeted investments around AI infrastructure.

We believe that improvements in SNAP’s ad platform and continued growth in DAU should lead to continued acceleration in revenue growth over the next several quarters and years. With 2023 revenue of $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability.”