$SNAP relief rally imminent or sideways trading for months?

SNAP cratered thus far in 2026 much like RDDT. Both are down 40 % in 1 month. SNAP had like 21 red candles in a row before earnings which added to the bloodbath. The stock used to always trade above $7 which was a floor that couldn’t be breached for years. Until this week when it went below that price and then absolutely nosedived. I get that people are not happy with how Snap Inc is being run. I’m not a fan myself. But earnings weren’t terrible. I’m not even sure they were bad. They were mixed I would say. Revenue was up 10 % YoY, eps beat by 200 % and net income for the quarter was $45m vs merely $9m the year before. However, even though the number of daily active users were actually up in total, strictly in North America they declined a tiny bit (5 %). And, they lowered guidance ever so slightly. Those two negatives apparently were enough to make the stock go down 14 % when the market responded to its earnings. An overreaction. The same thing happened to RDDT after earnings. Both were green in extended trading hours but when the market opened they got hammered. Interestingly, SNAP and RDDT are down by almost the same percentage year to date\~ 40 %. There has to be a relief rally at some point. SNAP is not turning into MySpace. It has 250 million daily active users in India. 474 million daily active users in North America. A couple hundred more active daily users in Rest of the World. Very close to 1 billion daily active users. While Reddit is popular among people aged 30+, SNAP is a dominant force among people aged 13-30. The company has also continued to generate a significant amount of revenue from Snap+, the paid subscription service that the platform launched back in 2022. The service’s subscribers grew 71% year-over-year, reaching 24 million. What do you think? Relief rally soon or are SNAP and RDDT stocks going to trade sideways or go even lower?