Bernstein Lifts Snap (SNAP) PT to $10 After Strong Q2 User Growth, Revenue

Snap Inc. (NYSE:SNAP) is one of the best large cap penny stocks to buy under $10. On July 22, Bernstein increased its price target for Snap to $10 from $9, while maintaining a Market Perform rating on the shares. The firm notes that despite a turbulent start to the quarter and the year, it is now difficult to find obvious short opportunities in the Internet sector. Digital advertising, in particular, has shown solid performance.

After this announcement, Snap reported its Q2 2025 financial results, with the revenue totaling $1.34 billion, which was a 9% increase year-over-year. This growth was attributed to a rise in business from small and medium-sized customers. However, the company’s net loss grew to $263 million, compared to $249 million in the previous year, partly due to higher legal and regulatory compliance costs.

Photo by Thought Catalog on Unsplash

Snap still saw significant user growth, with Monthly Active Users/MAU reaching 932 million, a 7% year-over-year increase. Daily Active Users/DAU also grew by 9% to 469 million. The company’s “other revenue,” primarily driven by its Snapchat+ subscription service, saw an increase of 64% to $171 million. The number of Snapchat+ subscribers approached 16 million, which was a 42% increase.

Snap Inc. (NYSE:SNAP) is a technology company with operations in North America, Europe, and internationally. The company offers Snapchat, which is a visual messaging application with various tabs that enable people to communicate visually through short videos and images.

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Disclosure: None. This article is originally published at Insider Monkey.