- Snap Inc. (NYSE: SNAP) received an “Outperform” rating and a raised price target of $15.00 from BMO Capital.
- The social media company is undergoing a major restructuring, including laying off 16% of its workforce, aiming for over $500 million in annualized expense savings and improved profitability.
- This strategic move, partly driven by artificial intelligence advancements reducing repetitive work, led to a positive market reaction, with Snap Inc.’s stock price rising by 8.84%.
Snap Inc. (NYSE: SNAP) is a social media company known for its visual messaging application, Snapchat. The company operates in the competitive digital advertising space, where it competes with larger players like Meta Platforms and TikTok. Snap Inc. generates most of its revenue from selling various advertising formats on its platform.
On April 15, 2026, BMO Capital confirmed its “Outperform” rating on Snap Inc. and raised its price target to $15.00 from $13.00. A price target is an analyst’s estimate of a stock’s future value. This new target suggests significant potential upside from the stock’s price of approximately $5.96 at the time of the rating.
This positive analyst view follows Snap Inc.’s major restructuring announcement. The company plans to lay off about 16% of its full-time employees, which amounts to around 1,000 people. As highlighted by Proactive Investors, this move is intended to improve efficiency and accelerate the company’s path toward consistent profitability.
The financial goal of this workforce reduction is substantial. As reported by Invezz, Snap Inc. expects to lower its annualized expenses by more than $500 million. Annualized expenses are costs projected over a full year. This cost-saving measure is a direct response to pressures from a difficult advertising market and activist investors.
Following the announcement, the market reacted positively, with Snap Inc.’s stock price increasing by 8.84% to $6.10. As noted by MarketWatch, the company stated that advancements in artificial intelligence have reduced the need for repetitive work, reflecting a broader trend of tech companies using AI to streamline their operations.
