Added to YB: 2026-04-08
Pitch date: 2026-04-04
SNAP [bullish]
Snap Inc.
+3.45%
current return
Author Info
No bio for this author
Company Info
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps.
Market Cap
$7.8B
Pitch Price
$4.64
Price Target
11.81 (+151%)
Dividend
N/A
EV/EBITDA
-34.30
P/E
-17.04
EV/Sales
1.52
Sector
Interactive Media and Services
Category
growth
Snap Inc. - $SNAP
SNAP: Irenic Capital took 2.5% stake, sees 7x upside via 6 initiatives. This pitch targets 164% upside by 2028 via path to GAAP profitability: Other Revenue (13% of FY25 rev, primarily Snapchat+ at 25M subs) scaling to $1.7B by FY28 driven by Memory storage plans (launched Sept '25, 5GB free cap forcing paid migration Sept '26); targeting 40M subs by end-2027 vs iCloud's 60%+ penetration. Gross margin expanding from 59.1% in Q4'25 to mid-60s via infrastructure efficiency + high-margin subscriptions. SBC declining from 31.1% (FY22) to 15.6% of rev (FY28) as topline grows. Ad rev (87% of FY25) growing mid-single digits, shift to DR (~75% of ads) adds resilience. FY28E: $580M net income, $0.34 EPS diluted on 1.55B shares (after 331M buybacks), 35x PE = $11.81 PT. Trading 6.3x EV/Rev vs peers at 10-15x despite operating leverage inflection. Risks: tri-class voting structure (Spiegel/Murphy control 99% votes), Spectacles burning $500M+ in 2026 (pet project unlikely to shut down), regulatory scrutiny (EC probe, AU removed 400k accounts), Q4'25 global DAU -3M QoQ, ad cyclicality (87% of rev). Perplexity $400M deal assumed at $0. Irenic has no governance influence despite economic stake.
Read full article (13 min)