What's Going On With Snap Shares Today?

Snap Inc. (NYSE:SNAP) shares are trading higher on Tuesday after Wells Fargo raised its price target on the stock from $8 to $11, citing stronger-than-expected revenue growth in a stabilizing ad market.

What To Know: The firm now expects second-quarter revenue to increase 13% year-over-year, up from a prior estimate of 6% and above the consensus forecast of 8%. Wells Fargo also sees subscription revenue reaching $165 million and forecasts $76 million in EBITDA for the quarter, nearly double the street estimate, according to Investing.com.

The bank highlighted growing optimism around the Sponsored Snaps feature, which monetizes the chat interface and could generate $400 million in revenue by 2027, with $20 million projected this quarter alone.

While domestic user engagement continues to decline, daily active users in the U.S. and Canada are down 4%, international markets remain stable, growing 8% annually.

Snap has also made headlines with its upcoming public release of new AR glasses, Specs, in 2026, along with enhancements to its Snap OS operating system that integrate OpenAI and Google Cloud tools for AI-powered development.

Additional analyst updates were mixed: Loop Capital cut its price target to $12 from $16 but maintained a Buy rating, and Benchmark reiterated its Hold rating while noting recent improvements in ad targeting tech and an expanding advertiser base.

The broader competitive landscape may also be helping Snap.

TikTok, a key rival, is facing scrutiny from EU regulators for potential violations of the Digital Services Act and a $600 million privacy-related fine. The regulatory pressure on TikTok may indirectly benefit Snap's ad business as marketers reconsider platform risk.

SNAP Price Action: Snapchat shares closed up 7.59% at $9.35 at publication on Tuesday, according to Benzinga Pro.

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