Snap Inc. (SNAP): A Bull Case Theory

We came across a bullish thesis on Snap Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on SNAP. Snap Inc.'s share was trading at $7.62 as of December 2nd. SNAP’s forward P/E was 18.28 according to Yahoo Finance.

Snap Inc. operates as a technology company in North America, Europe, and internationally.  SNAP continues to demonstrate strong execution in both user growth and monetization, positioning itself as a misunderstood yet structurally improving platform. In Q3 2025, daily active users (DAUs) reached 477 million and monthly active users (MAUs) hit 943 million, representing 34% and 8% year-over-year growth, respectively.

The company’s monetization momentum remains robust, with Snapchat+ revenue growing 54% YoY to an annualized run rate exceeding $750 million, while cash from operations continues to rise as Snap converts engagement into tangible financial performance.

Despite being perceived by the market as a declining social media app, Snap’s fundamentals tell a different story—one of a potential augmented reality compute platform powered by proprietary data, which could serve as a key differentiator in the AI era. Daily AR engagement exceeds 8 billion lens uses, with over 350 million users interacting with AR experiences daily, underlining the platform’s scale and depth.

Additionally, over 180 million users played games in Q3 2025, up 100% YoY, reflecting Snap’s broadening ecosystem and stickiness. CEO Evan Spiegel highlighted new conversation-starter initiatives aimed at revitalizing engagement as user behavior evolves from friend stories to Spotlight content.

The company is now shifting focus from pure user growth to monetization, introducing products like Sponsored Snaps, Promoted Places, Lens+, and storage plans—steps designed to lift ARPU while maintaining balance with engagement. This strategic flexibility mirrors the “Costco Algorithm” model of driving higher value per dollar spent, suggesting Snap is entering a phase where sustained profitability and platform expansion can coexist, creating an increasingly compelling long-term investment case.

Previously we covered a bullish thesis on Snap Inc. (SNAP) by LongYield in May 2025, which highlighted strong Q1 results, improving profitability, and growing advertising and subscription revenues. The company’s stock price has depreciated approximately by 2.68% since our coverage. The thesis still stands as fundamentals remain solid. Antonio Linares shares a similar view but emphasizes Snap’s AR platform evolution.

Snap Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held SNAP at the end of the second quarter which was 39 in the previous quarter. 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.