All the $SNAP naysayers will look foolish in a couple of months. I’m long 40,000 shares.

AI Summary

Author is long 40,000 SNAP shares, arguing the stock is deeply undervalued due to improving revenue and profitability, Snapchat+ growth, AR leadership, and a sector-rotation reversal catalyst from NVDA earnings.

SNAP — LONG Author is long 40,000 SNAP shares and expects the stock to rebound within a couple of months as sector rotation, AI fears, and SaaS/tariff pressures reverse. The bull case cites record users, paid subscribers, ad revenue, other revenue, total income and net income, stable debt/SBC, and DCF fair value estimates around $15–$19 versus a stock trading near $5. The author also points to Q4 2025 GAAP net profit of $45 million, Snapchat+ reaching over 25 million subscribers with a $1 billion annualized revenue run rate, and a 2026 AR Spectacles launch as underappreciated drivers. No explicit risk is stated beyond the expectation that NVDA earnings will revive sector rotation.

All the $SNAP naysayers will look foolish in a couple of months. I’m long 40,000 shares.

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Snap Inc has a lot going for it. More users than ever. More paid subscribers than ever. Higher ad revenue than ever. Higher ‘other revenue’ than ever. More diversified revenue than ever. Higher total income than ever. Higher net income than ever. Debt stable. SBC stable. 

So for the love of all that is pure, sweet and good on this blue yet slightly orange planet- WHY is the stock cheaper than ever before? 

I will tell you why, ladies and gentleman. Because STOCK snap fell victim of sector rotation. AI fears. Massive AI capex’. Saas apocalypse. Tariff threats and no eta on taco. 

Well, guess what. NVDA will shatter your minds tonight as they absolutely knock earnings out of the park. Sector ration rewind. Saas apocalypse rewind. Tacos inbound. AI fears rewind. And you all know what that means- I am going to be able to buy myself a nice looking Lamborghini from the profits I made from buying SNAP at $4s and selling when it skyrocketed back to $7 (its bottom from 2018-2026.). 

Mic drop. 

Also: 

Massive Valuation Gap: As of February 2026, several Discounted Cash Flow (DCF) models estimate Snap’s fair value at approximately $15 to $19 per share, while the stock has been trading near $5. This implies it could be over 60% undervalued based on projected future cash flows.

The Pivot to Profitability: In late 2025 and early 2026, Snap reported its first meaningful GAAP net profits (e.g., $45 million in Q4 2025). By slashing "growth-at-all-costs" marketing and focusing on margins, they are proving the business can actually make money.

Subscription Success: Snapchat+ has become a juggernaut. It reached over 25 million subscribers by February 2026, creating a $1 billion annualized revenue run rate that is high-margin and less volatile than the digital ad market.

AR Leadership: Snap is often considered the technical leader in Augmented Reality (AR). With the consumer launch of AR Spectacles slated for 2026, bulls believe the market is ignoring a massive hardware/platform play.

Ideas

u/lies_are_comforting Reddit r/stocks

Long SNAP on value gap, profits, AR catalyst

Author is long 40,000 SNAP shares and expects the stock to rebound within a couple of months as sector rotation, AI fears, and SaaS/tariff pressures reverse. The bull case cites record users, paid subscribers, ad revenue, other revenue, total income and net income, stable debt/SBC, and DCF fair value estimates around $15–$19 versus a stock trading near $5. The author also points to Q4 2025 GAAP net profit of $45 million, Snapchat+ reaching over 25 million subscribers with a $1 billion annualized revenue run rate, and a 2026 AR Spectacles launch as underappreciated drivers. No explicit risk is stated beyond the expectation that NVDA earnings will revive sector rotation.

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Ideas

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