Snap (SNAP -1.02%) is a technology company that empowers people to use cameras to improve their lives and communication through its flagship product, Snapchat. The visual messaging app enables users to enhance their relationships with friends, family, and the world around them.
NYSE: SNAP
Key Data Points
Snapchat has grown into one of the largest social media platforms. As of mid-2025, it averaged 469 million daily active users, and 932 million people use Snapchat at least once a month.
Snapchat's highly engaged user base tilts toward a younger crowd, with more than 75% of 13–34 year olds in dozens of countries using the app. Advertisers want to reach that younger demographic, which is helping Snap monetize its platform.
The company has grand growth ambitions. It's working toward reaching 1 billion monthly active users. Snap is investing heavily in expanding by rolling out new features, including leveraging the power of artificial intelligence (AI) to allow users to send messages and create AI-generated selfies.
Here's a step-by-step guide on how to buy the social media stock and some factors to consider before adding it to your portfolio.
Stock
How to buy Snap stock
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Snap?
Researching a company is a crucial step that prospective investors shouldn't skip. Here are some reasons you might want to invest in Snap:
- You're a fan of Snap and use its products.
- You believe Snap will continue growing its revenue and eventually start making a profit.
- You firmly believe Snap can deliver market-beating returns over the next three to five years.
- You think Snap's investments in innovation, like building augmented reality (AR) and AI features, will drive user growth and increased engagement.
- You don't currently need investments that produce dividend income.
On the other hand, here are some reasons why you might not want to buy shares of Snap:
- You're not a fan of Snap or its products.
- You're not sure how Snap makes money.
- You're not convinced that Snap will ever start making a profit.
- You're not sure Snap can deliver market-beating returns.
- You're in or nearing retirement and need investments that produce dividend income.
Is Snap profitable?
Snap had yet to turn the corner on profitability as of mid-2025, at least on a generally accepted accounting principles (GAAP) net income basis. However, in Q2 of 2025, the company delivered $41 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and generated $24 million of free cash flow.
Snap is still spending heavily to scale its business. It's focusing on its products and platforms, investing in AR, and making strategic acquisitions to accelerate its long-term product and technology vision. The company believes these investments will grow its revenue and free cash flow, enabling it to eventually turn the corner on profitability.
Does Snap pay a dividend?
Snap had yet to initiate a dividend as of mid-2025. It can't afford to pay dividends yet because it isn't consistently profitable and is reinvesting most of its cash flow into growing its business.
However, the company has started returning excess cash to shareholders. In Q2 2025, Snap's board of directors authorized a $243 million share repurchase program. Those repurchases will help offset the increase in the company's outstanding shares from its stock-based compensation program to retain employees.
ETFs with exposure to Snap
Many investors would rather passively invest than directly own stocks they must actively monitor. Buying an exchange-traded fund (ETF) can be a great way to gain passive exposure to a company like Snap.
Exchange-Traded Fund (ETF)
According to ETF.com, 113 ETFs held 131.3 million shares of Snap as of mid-2025. The ProShares Metaverse ETF (VERS -2.60%) was the largest holder, with more than 23,000 shares, just over a 3% allocation. Investors looking for other ETFs invested in Snap have several options, including:
- Global X Social Media ETF (NYSEMKT:SOCL): This ETF focuses on social media companies. Snap made up 2.54% of its assets in mid-2025. The ETF had a total expense ratio of 0.65%.
- First Trust Indxx Metaverse ETF (NYSEMKT:ARVR): The fund invests in companies that span a range of industries that are associated with the Metaverse. In mid-2025, Snap made up 2.24% of its assets. The ETF had a 0.7% gross expense ratio.
Will Snap stock split?
Snap didn't have an upcoming stock split on the calendar as of mid-2025. The social media platform has yet to split its stock since completing its initial public offering (IPO) in 2017 at $17 per share.
The company likely won't complete a stock split anytime soon. While shares skyrocketed in 2020 and 2021 (peaking at more than $75 per share), they've since come down sharply and were well below their IPO price as of mid-2025. Snap's stock price would likely need to significantly eclipse its prior peak before the company would consider splitting its shares.
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The bottom line on Snap
Snap has grown into a very popular social media platform, especially among younger users. That has made it a very attractive platform to advertisers seeking to get their products and services in front of that demographic.
While Snap has yet to turn the corner on profitability, the company believes its continued investments in new and innovative technologies like AR and AI will attract more users and advertisers. That should enable it to grow its revenue and eventually start making money. However, its current lack of profitability makes it a higher-risk investment.
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