Added to YB: 2026-02-20
Pitch date: 2026-02-18
SNAP [bullish]
Snap Inc.
-2.69%
current return
Author Info
Divergent Capital is a self-taught value investor in the tradition of Graham, Buffett and Munger. Sign up for the newsletter.
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
$8.3B
Pitch Price
$4.84
Price Target
17.00 (+261%)
Dividend
N/A
EV/EBITDA
-36.10
P/E
-18.07
EV/Sales
1.60
Sector
Interactive Media and Services
Category
turnaround
Q1'26 Idea Inventory, Part 1: $SNAP
SNAP: Platform biz at profitability inflection. 'Other revs' (Snapchat+, Lens+, Memories Storage) hit $928M run-rate, +67% YoY, =18% of ad revs. Memory storage key: 5GB limit forces subs at $0.99-$2.99/mo, scalable to 946M MAUs (not just 474M DAUs), high-margin, recurring, sticky. Near-zero marginal costs + premium multiple = re-rate catalyst. Owns Jan'27 $5 calls at $1.26, targets $9-$17.
Read full article (3 min)