Snap’s Post-Earnings Plunge: A Buying Opportunity or Value Trap?

Snap Inc. shares tumbled 20% following disappointing Q2 earnings, with revenue of $1.34 billion falling short of expectations despite 9% YoY growth. The Snapchat parent now faces mounting skepticism as its stock tests new lows.

User metrics show modest growth—469 million daily active users (+9%) and 932 million monthly users (+7%)—but international expansion masks stagnation in Core Western markets. The advertising-driven model mirrors social media peers, yet Snap's unique messaging-focused platform struggles to monetize as effectively as feed-based competitors.

Market reaction suggests fading patience with Snap's execution. The critical question: whether this selloff represents capitulation or justified skepticism about the company's ability to compete with Meta's Instagram and TikTok.