14 Best Growth Stocks Under $10 to Buy Right Now

Page 7 of 12

6. Snap Inc. (NYSE:SNAP)

Stock price as of May 2nd: $8.45

Revenue CAGR last 5 years: 27.73%

Number of Hedge Fund Holders: 44

Snap Inc. (NYSE:SNAP) is a technology company that runs the famous Snapchat platform, which represents a visual messaging application that competes with Instagram and TikTok. Beyond Snapchat, the company also offers products like Spectacles (smart glasses that capture video content) and Bitmoji (personalized avatars used on digital platforms). Like other media companies, SNAP generates its revenue primarily through advertising services, but also has the potential to monetize AR and AI capabilities across its platform. The US-based company ranked eighth on our recent list of 10 Best Low Priced Growth Stocks To Invest In.

Snap Inc. (NYSE:SNAP) delivered a strong Q1 2025 performance with revenue increasing 14% YoY to $1.36 billion, driven by progress in direct response advertising solutions, momentum in small and medium-sized businesses, and growth of the Snapchat+ subscription business. The company demonstrated improved profitability with $108 million in adjusted EBITDA and $114 million in free cash flow. The company reached a significant milestone with more than 900 million monthly active users and grew to 460 million daily active users, representing an increase of 38 million YoY.

Snap Inc. (NYSE:SNAP) is focusing on three key areas for growth: enhancing core visual communication products, investing in AI and ML models for better content ranking and personalization, and strengthening the creator ecosystem. Direct response advertising revenue reached 75% of total advertising revenue for the first time in Q1, while active advertisers grew by 60% YoY. Given the progress in advertising platform and execution against strategic priorities, the company believes it is well-positioned to deliver improved business performance and meaningful positive free cash flow. As SNAP makes further progress towards GAAP profitability, it is one of the best growth stocks to buy under $10.

Page 7 of 12