Snap Inc. (NYSE:SNAP) is one of the worst AI stocks to invest in according to Reddit. On February 6, following the company’s Q4 2025 earnings report, Barclays lowered its price target for Snap from $16 to $15 and kept an Overweight rating. The firm described the company’s outlook as being in flux with some call options, and noted that the core advertising business is currently lagging. Additionally, the firm highlighted that Snap faces regulatory overhangs across multiple regions.
A day before that, Stifel lowered its price target for Snap to $5.50 from $7 while maintaining a Sell rating. The firm explained that Snap’s Q1 2026 revenue guidance missed expectations, largely because management did not include potential contributions from the recently announced Perplexity deal, which has yet to fully materialize.
Evercore ISI also lowered the firm’s price target for Snap, on the same day, to $9 from $13 with an In Line rating. The firm noted that the company’s Q4 results presented mixed signals, highlighted by challenges in user growth and lingering uncertainties regarding the Perplexity deal. These factors have created significant valuation concerns and continue to cast a shadow over the stock’s performance outlook.
Snap Inc. (NYSE:SNAP) operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, which is a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight.
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. This article is originally published at Insider Monkey.