Snap Shares Extend Losing Streak to Eight Sessions

Snap US83304A1060

Snap Inc.'s stock continues to face significant downward pressure, marking its eighth consecutive day of losses. This persistent decline has eroded the social media company's market capitalization by approximately 14% since the start of the year. The latest sell-off appears driven by a confluence of insider selling activity and cautious sentiment from Wall Street analysts.

Market experts remain divided on the stock's near-term prospects. While Goldman Sachs analyst Eric Sheridan maintained a "Neutral" rating, he reduced his price target to $8.50, citing a more conservative outlook for advertising expenditure and user growth. This adjustment follows a similar move by Morgan Stanley, which revised its target to $9.50 the previous week.

This prevailing caution contrasts with more optimistic views, such as that from Truist Securities, which set an $11.00 price target and highlighted the company's disciplined cost management. The broader analyst consensus, however, remains guarded. The median price target among 32 covering analysts stands at $9.86.

On the regulatory front, a positive development emerged from the United Kingdom. Media regulator Ofcom acknowledged that Snapchat has made significant improvements to its risk assessment processes for illegal content. Nevertheless, this news was tempered by investor concerns that more restrictive legislation, like the recent social media ban for teenagers enacted in Australia, could gain traction in other markets.

Insider Transactions and Technical Levels

Selling pressure intensified last Friday following disclosures that Chief Financial Officer Derek Andersen sold 23,700 shares at a weighted average price of $7.83. Although this transaction was executed under a pre-arranged 10b5-1 plan, its timing coincided with the stock breaking through key technical support levels—a combination that unsettled market participants.

From a technical analysis perspective, the share price is now approaching its next significant psychological support level at the 52-week low of $6.90.

Upcoming Catalyst: The February Earnings Report

Investor attention is now squarely focused on the upcoming quarterly report scheduled for February 10, 2026. Beyond the financial figures, the market is keenly awaiting updates regarding the planned public rollout of the next generation of augmented reality glasses, "Specs," in 2026. This product launch is viewed as a critical future growth driver for the company.