SNAP Near $5 With 25M Paid Subscribers and Bulls Refusing to Quit

Still one of the big names in the social media space, Snap Inc. (NYSE:SNAP) is sitting near $5 a share, down 37% year-to-date and roughly 52% over the past year. Despite trading near multi-year lows, retail sentiment has held at 78 out of 100 this morning. The reason comes down to one word: subscribers.

On February 18, Snap announced that its direct revenue business crossed a $1 billion annualized revenue run rate, anchored by 25 million Snapchat+ subscribers, which grew 71% year-over-year in Q4 2025. CEO Evan Spiegel called it “an outside source of growth” that is “playing a critical role in diversifying our top line.” The subscriber momentum has drawn independent scrutiny from retail investors: one Reddit user documented their findings in a post titled “I manually collected n=13196 datapoints to see how many people subscribed to Snapchat+ ($5/mo) after they started charging for photo storage”, writing: “I manually collected n=13196 datapoints to see how many people subscribed to Snapchat+ ($5/mo) after they started charging for photo storage.”

I manually collected n=13196 datapoints to see how many people subscribed to Snapchat+ ($5/mo) after they started charging for photo storage
by u/wallstreetbets in wallstreetbets

Why Reddit Bulls Are Holding Their Ground

Discussion in r/wallstreetbets centers on Snap’s path to 1 billion monthly active users and what subscription monetization looks like at scale. A post titled “$110k SNAP YOLO – 1 Billion MAU” captured the mood: “They just hit 1 bil monthly users, have talked extensively about unlocking more rev per user, just turned a profit, and are spinning Specs into…”

$110k SNAP YOLO – 1 Billion MAU
by u/wallstreetbets in wallstreetbets

Three reasons bulls are digging in:

• Snapchat+ revenue grew 62% year-over-year to $232 million in Q4 2025, with a $1B annualized run rate confirmed
• Snap posted positive net income of $45 million in Q4, its first profitable quarter in years, with adjusted EBITDA margins at 21%
• Analyst consensus sees 74% upside from current levels, with a consensus price target of $8.98 across 25 analysts

The Insider Selling Problem

Even if Reddit bulls remain bullish, the bearish case is hard to dismiss as CEO Spiegel sold roughly $20 million in shares between December and January when the stock traded above $8. CTO Robert Murphy followed with $10.6 million in sales in early February. The CFO, General Counsel, Chief Business Officer, and Chief Accounting Officer all sold shares in mid-February as the price fell to the $4.70-$4.84 range. As notable as it is that executives sold shares, so too is it a potential flag that no executive bought shares during this period either. 

For its part, Wall Street is split as Goldman Sachs cut its target from $9.50 to $8.50 and Morgan Stanley slashed from $9.50 to $6.50, while Arete and B. Riley upgraded the stock, citing limited downside.

Snap’s subscription business carries structurally higher margins than advertising. Gross margins hit 59% in Q4, with management targeting above 60% in 2026. Prediction markets price a Snap acquisition at just 13.1% probability before year-end. Q1 2026 guidance of $1.5 billion to $1.53 billion in revenue will be the next real test of whether subscriber momentum can outweigh the pressure from insider selling and intensifying competition.