Is SNAP a good stock to buy? We came across a bullish thesis on Snap Inc. on The Variant View’s Substack. In this article, we will summarize the bulls’ thesis on SNAP. Snap Inc.’s share was trading at $4.36 as of March 24th. SNAP’s forward P/E was 9.74 according to Yahoo Finance.
Snap Inc. operates as a technology company in North America, Europe, and internationally. SNAP presents a compelling investment case driven by its platform economics and an emerging profitability inflection in its “Other Revenues” segment. While some investors focus on distractions such as historical SBC levels or CEO Eric Spiegel’s modest stock sales, these factors are largely irrelevant to long-term shareholders. Spiegel’s compensation is almost entirely tied to SNAP’s stock price, aligning his incentives with investors.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The real opportunity lies in the company’s high-margin, scalable products. Snapchat operates a platform business where marginal costs for distributing new products are negligible, allowing incremental revenue streams to flow directly to earnings. “Other Revenues,” which include Snapchat+, Lens+, Snapchat Platinum, and Memories Storage Plans, grew ~67% year-over-year to $745 million in FY25 and reached a $928 million annualized run rate in Q4, equivalent to ~18% of FY25 advertising revenues.
Memory storage plans, in particular, highlight a unique monetization lever: by imposing a 5GB free storage limit, users must subscribe to retain excess memories, creating a utility-like revenue source decoupled from engagement metrics. This subscription is broadly applicable to SNAP’s 946 million MAUs, not just its daily active users, and features high predictability, pricing power, and switching costs, making it superior in quality to traditional ad revenues.
Combined with near-zero distribution costs, this scalable, high-quality revenue segment can drive a substantial re-rating of the business. In addition to equity, SNAP’s long-dated $5 strike call options for Jan 2027 and Jan 2028 provide optionality on significant upside, reflecting the market’s underappreciation of the monetization potential embedded in its platform and subscription offerings. SNAP thus offers a rare combination of growth, margin expansion, and high-quality recurring revenues with an attractive risk/reward profile.
Previously, we covered a bullish thesis on Snap Inc. (SNAP) by LongYield in May 2025, highlighting revenue growth, profitability improvements, user base expansion, and Snapchat+ performance. SNAP’s stock price has depreciated by approximately 44.31% since our coverage due to weak advertising growth and investor concerns about profitability and guidance uncertainty. The Variant View shares a similar view but emphasizes platform economics and the high-quality, scalable monetization of “Other Revenues,” particularly memory storage plans, as a key catalyst.
Snap Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held SNAP at the end of the fourth quarter which was 50 in the previous quarter. While we acknowledge the risk and potential of SNAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNAP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
