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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.