10 Overlooked AI Stocks to Buy Now

8. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund holdings: 35

Upside Potential as of October 21, 2025: 21.11%

On October 17, 2025, Snap Inc. (NYSE:SNAP) received a ‘Hold’ rating from John Blackledge, an analyst at TD Cowen, with a price target of $9.00. While the analyst’s stance is cautious, the price target still reflects a potential upside of nearly 21%, due to various factors influencing the company’s financial outlook.

Although an improvement in revenue growth guidance for the third quarter of 2025 was noted, Snap Inc. (NYSE:SNAP) has encountered multiple challenges, according to the analyst. Among them are difficulties with ad auction pricing affecting campaign prices in the second quarter. Additionally, a temporary dip in ad pricing due to a surge in Sponsored Snaps ad inventory is considered a short-term challenge that sets the stage for success in the long haul.

The analyst outlines that Snap Inc. (NYSE:SNAP) remains under strain from weakened brand advertising and rising infrastructure expenses, but this is offset by the meaningful increase in active advertisers and a substantial growth in Snap+ revenue. For now, the analyst backs its stance with prospects from advertising revenue growth and margin expansion.

Snap Inc. (NYSE:SNAP) is a California-based technology company with operations in North America, Europe, and other international markets. Founded in 2010, the company offers Snapchat, a visual messaging application, Snapchat+, a subscription platform, and Spectacles, an eyewear product.