Cautious Outlook for Snap Inc. (SNAP) as Analyst Sets Price Target at $9

Snap Inc. (NYSE:SNAP) is among the overlooked AI stocks to buy now. On October 17, 2025, Snap Inc. (NYSE:SNAP) received a ‘Hold’ rating from John Blackledge, an analyst at TD Cowen, with a price target of $9.00. While the analyst’s stance is cautious, the price target still reflects a potential upside of nearly 21%, due to various factors influencing the company’s financial outlook.

Although an improvement in revenue growth guidance for the third quarter of 2025 was noted, Snap Inc. (NYSE:SNAP) has encountered multiple challenges, according to the analyst. Among them are difficulties with ad auction pricing affecting campaign prices in the second quarter. Additionally, a temporary dip in ad pricing due to a surge in Sponsored Snaps ad inventory is considered a short-term challenge that sets the stage for success in the long haul.

The analyst outlines that Snap Inc. (NYSE:SNAP) remains under strain from weakened brand advertising and rising infrastructure expenses, but this is offset by the meaningful increase in active advertisers and a substantial growth in Snap+ revenue. For now, the analyst backs its stance with prospects from advertising revenue growth and margin expansion.

Snap Inc. (NYSE:SNAP) is a California-based technology company with operations in North America, Europe, and other international markets. Founded in 2010, the company offers Snapchat, a visual messaging application, Snapchat+, a subscription platform, and Spectacles, an eyewear product.

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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