Snap Inc. SNAP

The business

Snap sells advertising inside a messaging app used mostly by people under thirty. The product is the camera: messages that disappear, a map of where friends are, and augmented reality filters. Advertisers buy attention from a demographic that is expensive to reach anywhere else and that does not use the platforms their parents use. Snap gets paid per impression and per click, so revenue is user time multiplied by the price an advertiser will pay for measurement it trusts.

That price is the problem. Snap competes for the same budgets as Meta and TikTok, both of which have better targeting infrastructure and vastly more scale, and it has spent a decade as the third choice in a two horse market. What changed is the cost line, not the rank. FY2025 revenue reached $5.93B, up 10.6%, the June 2026 quarter grew about 19%, and operating loss fell from $1.40B to $0.53B.