Freedom Broker Upgrades Snap Inc. (SNAP) to ‘Buy’; Reduces PT to $9

Snap Inc. (NYSE:SNAP) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.

On August 11, 2025, Freedom Broker upgraded Snap Inc. (NYSE:SNAP) from ‘Hold’ to ‘Buy’, while reducing its price target from $10 to $9. This update follows the company’s weaker-than-expected Q2 2025 results. During the quarter, a 13.18% year-over-year revenue growth was recorded, which fell short of forecasts. Meanwhile, ad platform disruptions impacted monetization and direct response advertising, resulting in lower profitability.

While Snap Inc. (NYSE:SNAP) recently fell to near a 52-week low, the analyst remains confident, thanks to the company’s strong balance sheet, with liquid assets covering short-term obligations nearly four times over. Meanwhile, the company’s Q3 revenue guidance met analyst expectations, and its adjusted EBITDA outlook surpassed expectations.

Snap Inc. (NYSE:SNAP) is known for its products like Snapchat, Lens Studio for augmented reality, and AR glasses, Spectacles. It is included in our list of the most oversold stocks.

While we acknowledge the potential of SNAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNAP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.