SNAP Stock Falls -14% With A 8-day Losing Spree On Analyst Downgrade
Snap (SNAP) – a camera app and connected smart eyewear producer – hit 8-day losing streak, with cumulative losses over this period amounting to a -14%. The company market cap has crashed by about $2.1 Bil over the last 8 days, and currently stands at $13 Bil.
The stock has YTD (year-to-date) return of 6.7% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Goldman Sachs Price Target Reduction
- Goldman Sachs analyst Eric Sheridan maintained a Neutral rating but lowered the price target to $8.50.
- The revision signaled a more cautious outlook on the stock’s near-term performance.
- Impact: Negative investor sentiment, Increased selling pressure
[2] Insider Stock Sale by CFO
- CFO Derek Andersen sold 23,715 shares on January 14, 2026.
- Although a planned sale, the timing during a stock decline likely amplified negative sentiment.
- Impact: Heightened investor concern, Perception of weakening insider confidence
[3] Sector-Wide Headwinds and Market Downturn
- Reports of tightening advertising spend and declining user attention across social media platforms in early January 2026.
- Major stock indexes experienced losses during the same period, indicating a risk-off environment.
- Impact: Broad-based sell-off in social media stocks, Decreased investor appetite for growth stocks
Opportunity or Trap?
Below is our take on valuation.
There are a few things to fear in SNAP stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell SNAP).
But here is the real interesting point.
You are reading about this -14% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for SNAP stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | SNAP | S&P 500 |
|---|---|---|
| 1D | -3.0% | -0.1% |
| 8D (Current Streak) | -14.3% | -0.1% |
| 1M (21D) | 2.2% | 2.1% |
| 3M (63D) | -3.0% | 4.7% |
| YTD 2026 | -6.7% | 1.4% |
| 2025 | -25.1% | 16.4% |
| 2024 | -36.4% | 23.3% |
| 2023 | 89.2% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: SNAP Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 102 S&P constituents with 3 days or more of consecutive gains and 49 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 38 | 16 |
| 4D | 17 | 11 |
| 5D | 22 | 12 |
| 6D | 0 | 5 |
| 7D or more | 25 | 5 |
| Total >=3 D | 102 | 49 |
Key Financials for Snap (SNAP)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $4.6 Bil | $5.4 Bil |
| Operating Income | $-1.4 Bil | $-787.3 Mil |
| Net Income | $-1.3 Bil | $-697.9 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.3 Bil | $1.5 Bil |
| Operating Income | $-259.7 Mil | $-128.4 Mil |
| Net Income | $-262.6 Mil | $-103.5 Mil |
The losing streak SNAP stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.