Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

Snap Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно вырос. Рынок на стороне быков.

Medium index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос

Meta Platforms (META) is the world’s largest social media company. Over the past several years, the Zacks Rank #3 (Hold) company has evolved from its core Facebook app to multiple apps, including Instagram and WhatsApp. Meta’s scale has helped it to build a sizable position in digital advertising, where it competes with Alphabet (GOOGL), Amazon (AMZN), and Snap (SNAP). Recently, Meta has made AI a focus, creating the “Llama” foundational model, leveraging it on the back end for ad optimization, offering a “Meta AI” virtual assistant embedded across WhatsApp, Instagram, Facebook, and Messenger.
Meta Q2 EPS Information
Meta will report Q2 2026 financial results on Wednesday, July 29th, after the U.S. equity market closes. Below is some key information to know ahead of time:
META Wall Street Estimates
Zacks Consensus Analyst Estimates suggest that Q2 revenue will be ~$60.17B (26.63% YoY growth) while EPS will be $7.13 (-0.14% YoY growth).
Image Source: Zacks Investment Research
META EPS Surprise History
Meta has consistently beaten Wall Street expectations. The company has beaten Zacks Consensus Estimates for 13 consecutive quarters while beating them by an average of 12.31% over the past four.
Image Source: Zacks Investment Research
META Implied Post-EPS Options Move
The options market is currently pricing in a post-earnings report move of +/- 7.3% in Meta shares.
META Stock Performance
Meta shares are -15.2% over the past year, underperforming the S&P 500’s 18.6% gain.
Image Source: Zacks Investment Research
Valuation
Meta shares are reasonably priced. Currently, Meta trades at ~20x earnings, below the 10-year average of 26.9x.
Image Source: Zacks Investment Research
META Earnings: What to Watch
· AI CAPEX: Like many big tech giants, META’s capital expenditures have been soaring as the company jockeys for AI dominance. Currently, 2026 full-year CAPEX is expected to be between $125-$145 billion. Lately, Wall Street has been punishing companies like Google and Tesla for higher CAPEX. However, if Meta can illustrate enough of a positive revenue impact from ad spend, Wall Street may overlook higher spend.
· AI Infrastructure Partnerships: Meta is in the process of monetizing its massive cloud and compute capacity.Wall Street rumors are swirling about a potential multi-billion-deal with AI leader Anthropic. Such an announcement would be bullish for the stock.
· Reality Labs: Meta’s hardware and metaverse division has been a money pit for the company. Investors will be watching to see if there is any improvement here.
Bottom Line
Meta will report after Wednesday’s closing bell. While heavy AI spending has been a point of contention, Meta’s strong ad-targeting performance and low valuation make for a must-watch report.
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Meta EPS Preview: Can AI Monetization Justify Soaring CAPEX?

Meta Platforms META is set to report its second-quarter 2026 results on July 29.
META expects total revenues between $58 billion and $61 billion, including a 2% tailwind from favorable forex.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $60.17 billion, indicating an increase of 26.63% from the year-ago quarter’s reported figure. The consensus mark for earnings stands at $7.13 per share, up 0.4% over the past 30 days, suggesting a decline of 0.14% from the figure reported in the year-ago quarter.
Consensus Estimate Trend
Image Source: Zacks Investment Research
Meta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 12.31%.
Meta Platforms, Inc. Price and EPS Surprise
Let’s see how things have shaped up for the upcoming announcement.
Strong Advertising Growth to Aid META’s Q2 Results
Meta’s second-quarter 2026 performance is likely to have benefited from continued growth in advertising impressions and pricing, supported by healthy user engagement across Facebook and Instagram. In the first quarter of 2026, ad impressions increased 19% year over year, while the average price per ad rose 12%. Video remained a major engagement driver, with ranking improvements lifting Instagram Reels time spent by 10% and Facebook video time by more than 8% globally. These trends have likely supported greater ad inventory and advertiser demand in the to-be-reported quarter.
META’s focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger and Threads — is driving user as well as advertising engagements. AI is heavily dependent on data, of which META has a trove, driven by its more than 3.56 billion daily users. This staggering reach makes Meta one of the most important players in the digital ad sales market, apart from Alphabet GOOGL and Amazon AMZN.
META’s second-quarter results are expected to have benefited from AI-driven improvements in advertising performance. Enhancements to its Lattice and GEM models increased conversion rates for landing-page-view ads by more than 6%, while the expansion of the Adaptive Ranking Model drove a 1.6% conversion-rate increase across major Facebook and Instagram surfaces. Growing adoption of generative AI creative tools, which were used by more than 8 million advertisers, likely improved campaign performance and supported higher advertiser spending.
The company’s performance is likely to have gained from improving monetization across newer products and messaging services. Meta expanded Threads advertising into more than 200 countries and continued rolling out WhatsApp Status ads, which were already being viewed by hundreds of millions of people daily. WhatsApp paid messaging and subscription revenues increased 74% year over year in the first quarter, while weekly conversations facilitated through Business AIs grew to more than 10 million from 1 million at the beginning of the year.
However, Meta’s profitability is likely to have been constrained by elevated infrastructure and employee-related expenses. In the first quarter of 2026, costs and expenses increased 35% year over year, reflecting higher depreciation, data-center operating costs, third-party cloud spending and compensation for AI talent. The company maintained its 2026 expense outlook of $162-$169 billion, suggesting that these cost pressures likely persisted through the second quarter.
META Shares Underperform Sector; Valuation Stretched
META shares have dropped 9.9% year to date (YTD), underperforming the Zacks Computer & Technology sector’s appreciation of 9.6%. Shares have underperformed Alphabet and Amazon but outperformed Snap SNAP. YTD, Alphabet and Amazon shares have appreciated 2.2% and 0.6%, respectively, while Snap shares have declined 46.1%.
META Stock Underperforms Sector
Image Source: Zacks Investment Research
Meta Platforms’ current valuation is stretched, as suggested by the Value Score of C.
In terms of the forward 12-month price/sales, META is trading at 5.33X, higher than the Zacks Internet Software industry’s 3.76X, Snap’s 1.04X and Amazon’s 2.82X but lower than GOOGL’s 7.9X.
META Shares are Overvalued
Image Source: Zacks Investment Research
META Leverages AI to Boost Growth, Higher Capex Hurts
META’s long-term growth prospects are supported by deeper integration of AI across content recommendations and advertising. The company is developing foundation models and LLM-based recommendation systems capable of understanding content and user interests more deeply. Better recommendations can increase time spent, expand advertising inventory and improve conversion rates, strengthening both engagement and monetization across Facebook, Instagram and Threads.
Meta AI and the Muse family of models offer another substantial growth avenue. Muse Spark has already driven double-digit increases in Meta AI sessions per user, while Meta plans to build personal and business agents capable of supporting shopping, customer service, content creation and other tasks. WhatsApp and Threads provide significant untapped monetization potential. Threads has more than 150 million daily active users, while WhatsApp Status has a large engagement base across Latin America, Asia and Africa. Ads, paid business messaging, subscriptions and Business AIs could gradually diversify revenues beyond Meta’s mature Facebook and Instagram advertising businesses.
However, META’s aggressive AI strategy requires exceptionally high capital spending with uncertain returns. The company has committed substantial resources to data centers, cloud capacity, chips and technical talent before its newer AI products have reached meaningful monetization. META raised its 2026 capital expenditure guidance to $125-$145 billion from $115-$135 billion, citing component inflation and additional data-center investments. High depreciation, cloud expenses and infrastructure operating costs are likely to weigh on margins and free cash flow over time.
Conclusion
Meta appears well positioned heading into its second-quarter 2026 earnings release, supported by resilient advertising demand, AI-driven improvements in engagement and monetization, and expanding opportunities across Threads and WhatsApp. However, elevated infrastructure investments, rising operating expenses and an outstretched valuation could temper investor sentiment despite solid revenue growth. Investor expectations are already high. Hence, the upcoming results and Meta management’s commentary on AI spending, capital allocation and monetization progress will likely play a key role in determining the stock’s near-term direction.
Meta Platforms currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Meta Q2 Earnings Loom: Buy, Sell or Hold META Stock Ahead of Results?

Key Points
After a strong bullish start, this newly IPO'd stock is underperforming.
This weakness isn't particularly surprising in light of how other, comparable stocks have performed following their public offerings.
The near-term odds aren't promising, but the longer-term statistics aren't exactly compelling either.
Down 15% from June's initial public offering price and more than 30% below its post-IPO peak, it's safe to say many investors are more than a little disappointed in Space Exploration Technologies' (NASDAQ: SPCX) -- you know it better as SpaceX -- shares so far.
So now what? Is it worth buying or continuing to hold at its current price? Or, should investors take the recent weakness at face value and throw in towel on this ticker?
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Maybe something in between.
History says
With the dust of this mid-June IPO finally settling, it's time to say out loud what most people have only been quietly thinking to themselves. That is, like almost all other major initial public offerings for the past three decades, this one was buoyed by hype that was never built to last.
The stock could continue sinking before finding a bottom, too. Brokerage firm Edward Jones reports that between 2011 and 2020 -- a period when then-Facebook Meta, Peloton, Snapchat parent Snap, and Twitter (now X) all went public -- the average newly minted technology stock was down 14% from its IPO price just six months following its public offering. Again, IPO hype has an all-too-familiar pattern. Never mind the end of the lockups keeping current SPCX shareholders from shedding their now-deteriorating positions, which, of course, would only add to the selling pressure.
Longer-term, still a long shot
Just don't feel like you necessarily need to forego a stake in SpaceX forever. Post-IPO performance numbers from Nasdaq Economic Research indicate that between 2010 and 2020, newly public companies generating annual revenue in excess of $100 million end up, on average, at least keeping pace with the broad market's gains, if not slightly beating them.
Still, take that information with a grain of salt. While the average three-year performance is positive, this average is skewed by a small handful of overperformers. Nearly two-thirds of these stocks were still in the red three years after their IPO.
In other words, don't bet the farm if you decide to go bottom-fishing.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Forget SpaceX Stock?

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Snap Inc (Symbol: SNAP) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $4.31 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.0. A bullish investor could look at SNAP's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of SNAP shares:
Looking at the chart above, SNAP's low point in its 52 week range is $3.81 per share, with $9.90 as the 52 week high point — that compares with a last trade of $4.35.
Further SNAP Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Snap is Now Oversold (SNAP)

Reddit RDDT is benefiting from accelerating momentum in its AI initiative, which is increasingly positioning it as a foundational resource in the modern Internet landscape. With more than 25 billion posts and comments and nearly 500 million weekly users, Reddit’s platform is uniquely positioned to provide real human perspectives, an essential resource for both AI model training and genuine user engagement.
A key driver of this momentum is Reddit’s strategic partnerships with leading AI companies such as Google and OpenAI. These collaborations generate direct licensing revenues and reinforce Reddit’s relevance as a source of high-quality, diverse data for large language models. The company highlighted that it remains the most-cited source in AI citations across platforms, and that its data is among the most-searched on Google.
Reddit is leveraging AI and machine learning to enhance its own platform. The company has invested heavily in machine learning talent and infrastructure, focusing on improving the user experience through better content recommendations, faster onboarding and more relevant feeds. Reddit’s ad stack now integrates AI-driven automation and optimization, resulting in measurable improvements for advertisers, such as a 17% reduction in cost per action and a 25% increase in conversions for those using AI-powered campaign features.
Reddit’s AI-driven product improvements are enhancing user experience and engagement. The company has focused on upgrading its talent and infrastructure, particularly in machine learning, to improve core features such as feed relevance, onboarding and search. In the first quarter of 2026, search weekly active users were up 30% year over year, and new AI-powered features like bot verification and machine translation are making the platform more accessible and secure.
Reddit’s AI strategy is expected to benefit the company by driving its top-line growth. For the second quarter of 2026, management expects revenues to be in the range of $715 million to $725 million.
RDDT Faces Stiff Competition
RDDT is facing stiff competition from competitors like Meta Platforms META and Snap SNAP. Both Meta Platforms and Snap are also expanding their footprint in the AI space.
Meta Platform is benefiting from its accelerating growth into artificial intelligence (AI), which is driving significant top-line growth. Meta Platform’s release of the Muse family of models and the upgraded Meta AI assistant has positioned the company as a leader in personal superintelligence, with billions of users now accessing these AI-powered features. This surge in AI-driven engagement is translating directly into top-line growth, as evidenced by a 33% year-over-year increase in total revenues to $56.3 billion for the first quarter of 2026.
Snap has introduced a suite of AI-powered advertising tools to help brands create, optimize and personalize campaigns on Snapchat. New features include AI-assisted campaign setup, image-to-video generation, creative enhancement, conversational AI Sponsored Snaps and creator marketplace automation, aimed at improving engagement, commerce and advertising performance across its platform.
RDDT’s Share Price Performance, Valuation and Estimates
RDDT shares have plunged 19.4% year to date, underperforming the broader Zacks Computer & Technology sector’s 16.5% appreciation and the Internet - Software industry’s 3.8% decline.
RDDT Stock Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 9.32X compared with the Computer & Technology sector’s 6.88X. RDDT has a Value Score of F.
RDDT Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $4.83 per share, which has been unchanged over the past 30 days. This suggests 84.35% year-over-year growth.
Reddit Inc. Price and Consensus
RDDT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Reddit Inc. (RDDT) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reddit's AI Initiative Gains Momentum: A Sign for More Upside?

Snap (SNAP) ended the recent trading session at $4.76, demonstrating a +1.71% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Shares of the company behind Snapchat witnessed a loss of 9.3% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.53%, and the S&P 500's gain of 1.61%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected on August 3, 2026. It is anticipated that the company will report an EPS of $0.07, marking a 800% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 13.97% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.6 per share and revenue of $6.7 billion, indicating changes of +81.82% and +12.89%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 13.82% fall in the Zacks Consensus EPS estimate. Currently, Snap is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 7.86. This represents a discount compared to its industry average Forward P/E of 19.89.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Snap (SNAP) Outpaces Stock Market Gains: What You Should Know

Reddit RDDT is benefiting from its accelerated focus on AI safety and user trust, which has become a cornerstone of its growth strategy in 2026. The company’s leadership recognizes that authentic human conversation is a scarce and increasingly valuable asset in the digital age.
With more than 25 billion posts and comments and nearly 500 million weekly users, Reddit’s platform is uniquely positioned to provide real human perspectives, an essential resource for both AI model training and genuine user engagement. To protect the integrity of this large collection of human-generated content, Reddit has increased its AI safety efforts by advancing bot verification, increasing transparency around automated accounts, and adopting secure authentication technologies such as Passkeys.
Further expanding its AI safety initiatives, Reddit has outlined new measures to preserve authentic human conversations as AI-generated content becomes more common online. The company is expanding AI-powered detection systems to identify spam, fake engagement, and coordinated manipulation while strengthening human oversight and moderator tools.
Reddit is also introducing privacy-focused human verification methods to distinguish real users from bots without compromising anonymity. RDDT will continue investing in safety technologies, transparency, and community-driven moderation to ensure discussions remain trustworthy. These efforts are designed to protect Reddit’s unique value as a platform built on genuine human experiences and conversations in the AI era.
Reddit’s commitment to AI safety and user trust is expected to be a key driver of both user growth and monetization. The company’s goal to reach 100 million daily U.S. users is underpinned by ongoing improvements in product quality, onboarding and community support.
RDDT Faces Stiff Competition
RDDT is facing stiff competition from competitors like Meta Platforms META and Snap SNAP. Both Meta Platforms and Snap are also expanding their footprint in the AI space.
Meta Platform is benefiting from its accelerating growth into artificial intelligence (AI), which is driving significant top-line growth. Meta Platform’s release of the Muse family of models and the upgraded Meta AI assistant has positioned the company as a leader in personal superintelligence, with billions of users now accessing these AI-powered features. This surge in AI-driven engagement is translating directly into top-line growth, as evidenced by a 33% year-over-year increase in total revenues to $56.3 billion for the quarter.
Snap has introduced a suite of AI-powered advertising tools to help brands create, optimize and personalize campaigns on Snapchat. New features include AI-assisted campaign setup, image-to-video generation, creative enhancement, conversational AI Sponsored Snaps and creator marketplace automation, aimed at improving engagement, commerce and advertising performance across its platform.
RDDT’s Share Price Performance, Valuation, and Estimates
RDDT shares have plunged 12.6% year to date, underperforming the broader Zacks Computer & Technology sector’s 14.7% increase and the Internet - Software industry’s 11.2% decline.
RDDT Stock Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 10.19X compared with the Computer & Technology sector’s 6.88X. RDDT has a Value Score of F.
RDDT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $4.83 per share, which has been unchanged over the past 30 days. This suggests 84.35% year-over-year growth.
Reddit Inc. Price and Consensus
Reddit currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Reddit Inc. (RDDT) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reddit's AI Safety Drive Accelerates: Can User Trust Fuel Growth?

Key Points
When examining recent financial data, Meta Platforms currently demonstrates stronger and more consistent revenue generation than Snap.
Meta Platforms has achieved clear quarter-over-quarter revenue growth over most of the past eight periods, while Snap has maintained a much smaller, seasonally fluctuating revenue base.
Investors should watch whether the revenue gap between the two companies continues to widen or begins to stabilize over upcoming quarters.
Meta Platforms: Scaling Its Revenue Base
Meta Platforms (NASDAQ:META) primarily generates revenue by offering digital advertising across its social applications, including Facebook and Instagram, and developing virtual reality hardware.
While launching its Muse Spark artificial intelligence model and expanding its optical cable manufacturing capacity, it reported a 48% net income margin for the quarter ended March 31, 2026.
Snap: Navigating Seasonal Revenue Patterns
Snap (NYSE:SNAP) generates revenue mainly by selling digital advertising space and augmented reality features on its Snapchat camera application.
It opened pre-orders for its new wearable augmented reality glasses and secured a credit rating upgrade, while reporting a -6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue gives investors a clear, top-level view of how much money a business brings in from its core operations over a specific period. This metric helps investors measure a company's overall size, market footprint, and long-term trajectory.
Quarterly Revenue for Meta Platforms and Snap
Q2 2024 (June 2024)
$39.1 billion
$1.2 billion
Q3 2024 (Sept. 2024)
$40.6 billion
$1.4 billion
Q4 2024 (Dec. 2024)
$48.4 billion
$1.6 billion
Q1 2025 (March 2025)
$42.3 billion
$1.4 billion
Q2 2025 (June 2025)
$47.5 billion
$1.3 billion
Q3 2025 (Sept. 2025)
$51.2 billion
$1.5 billion
Q4 2025 (Dec. 2025)
$59.9 billion
$1.7 billion
Q1 2026 (March 2026)
$56.3 billion
$1.5 billion
Data source: Company filings. Data as of June 23, 2026..
Foolish Take
Meta and Snap both operate in the social media space and generate the bulk of revenue from advertising, but outside of that, the two companies are on vastly different trajectories. This is not only evident in their outsized sales difference, but also in their net income margins.
Snap went public in 2017, and in nearly ten years, has yet to reach profitability. Not only that, while sales are rising year over year, they are not seeing the degree of growth experienced by Meta. For example, Snap reported a 12% year-over-year revenue increase to $1.5 billion in the first quarter. Yet that pales in comparison to Meta’s 33% year-over-year jump to $56.3 billion.
Snap’s struggles with profitability contributed to its stock dropping to a 52-week low of $3.81 this year. Meanwhile, Meta’s share price also fell in 2026 due to its lavish spending on artificial intelligence. In its Q1 report, the Facebook parent announced an increase in this year’s capital expenditures to as high as $145 billion. The company spent $72 billion in 2025.
Even so, Meta attributes revenue growth to its AI investments. That’s why it’s doubling down in this arena to fund ongoing AI development. Snap does not have the same capacity to spend on AI, and that could end up hurting its sales growth in the future.
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Robert Izquierdo has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meta Platforms vs. Snap: Comparing Revenue Scale and Recent Trajectories

For Immediate Release
Chicago, IL – June 24, 2026 – Zacks Equity Research shares Cboe Global Markets CBOE as the Bull of the Day and Applied Digital APLD as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Meta Platforms META, Snap SNAP and Reddit RDDT.
Here is a synopsis of all five stocks:
Cboe Global Markets is a Zacks Rank #1 (Strong Buy) that is the world's largest options exchange and a leading provider of market infrastructure across equities, derivatives, foreign exchange, and futures.
The stock has been taken to the woodshed over the past month, with shares tumbling from $370 to around $250. Wall Street repriced the stock on competitive fears rather than fundamentals, which has made this one of the more compelling beaten-down setups in the market right now.
About the Company
The Chicago-based company operates the exchanges where investors buy and sell options on the S&P 500 (SPX), the VIX volatility index, and thousands of individual stocks and ETFs. These are products that institutions and retail investors alike use to hedge portfolios, express market views, and generate income.
Cboe also owns a robust market data business called Data Vantage that sells real-time and historical trading data to financial firms globally. In short, every time volatility spikes and options volume surges, Cboe is the toll booth.
The company is valued at $27 billion and has a Forward PE of 19. The stock has Zacks Style Scores of “D” in Value, but “A” in Growth and Momentum.
Q1 Earnings Beat
The irony is that the selloff followed one of the best quarters in company history. Cboe posted Q1 adjusted EPS of $3.70, beating estimates by 9%, on net revenue of $729M versus the $688M consensus. Operating margins expanded to 72.4% from 66.0% a year ago, net revenue grew 29%, and diluted EPS surged 54%.
Management raised full-year organic revenue growth guidance to low double-digit to mid-teens from mid-single-digit, cut operating expense guidance to $838-853M from $864-879M, and announced a strategic realignment expected to reduce the workforce by 20% while directing capital toward higher-return businesses.
Record index options volumes, a 32% jump in global trading hours activity, and 19% Data Vantage revenue growth rounded out the print.
Estimates Head Higher
The estimate trend tells an important story. Over the past 60 days, analysts have revised current-year EPS estimates up nine times with zero downgrades.
Full-year consensus has gone from $12.44 to $13.34 and next year's estimate from $13.05 to $14.08. The current quarter consensus has moved from $2.81 ninety days ago to $3.23 today.
Not a single analyst has cut numbers across any time period, while the stock has been punished by fear while the fundamental earnings picture has done nothing but improve.
Competition
What sent the stock into freefall wasn't the earnings, it was the narrative. CFTC approval of perpetual futures for Kalshi, Schwab announcing plans to launch its own binary options product, and broader fears of prediction market disruption spooked investors into treating CBOE's moat as existentially threatened.
But management pushed back hard on that read, noting that SPX options are cleared through OCC infrastructure with 34 retail brokers, 11 floor broker groups, and 20 market-making groups participating. It’s an ecosystem that took decades to build and cannot be replicated overnight.
Cboe is also moving into event markets itself, with securities-based XSP event contracts in the pipeline and company-specific KPI contracts to follow, positioning it as a participant in the disruption rather than a victim of it.
The Technical Take
The stock started the year at $250 and recently tested that level, where it showed some support. This was after a move to $370 that erased the year's gains in just a month.
The stock will look to bounce and test the moving averages, which will now be resistance. Let us look at those moving averages:
21-day: $295
50-day: $314
200-day: $275
In Summary
CBOE has erased an entire year's gains on fear-driven selling while the underlying business is firing on all cylinders. The stock offers a rare combination of near-term bounce potential and a long-term entry point into one of the most durable franchise businesses in financial infrastructure.
Applied Digital is a Zacks Rank #5 (Strong Sell) that has captured investor imagination with its AI data center buildout story. However, with a $13 billion market cap, a beta of 5.69, and F scores across Value, Growth, and VGM, the stock is priced for a future that is still years away from being realized.
About the Company
Applied Digital is a data center developer and operator building large-scale GPU-optimized AI infrastructure campuses in the Dakotas, with a side business in bitcoin mining hosting that ironically remains the most profitable part of the company.
The firm is developing what it calls "hyperscale data center regions" which are massive campuses designed to serve the compute demands of AI workloads for some of the world's largest technology companies.
The Quarter Looked Good on the Surface
To be fair, Q3 results were impressive at first glance. Applied Digital reported EPS of $0.09 versus estimates of negative $0.10, and revenue of $126.6M absolutely demolished the $75.1M consensus. Adjusted EBITDA came in at $44.1M versus $6.3M a year ago.
But dig into the details and the picture gets more complicated. The standout performer was the bitcoin mining hosting business, which generated nearly $14 million in segment operating profit on $120 million in net assets, the highest return on assets in the company.
The AI data center story, the reason the stock trades at $13 billion, is still largely a construction project.
The Debt Load is Real, the Revenue Ramp is Not Yet
Applied Digital has placed $2.15 billion in senior secured notes at 6.75% due 2031, sits on $2.7 billion in total debt, and is still working to place one remaining debt tranche for its final 150MW building at Polaris Forge 1.
Management targets long-term leverage of 5 to 6 times NOI, but they have to actually get to $1 billion in NOI first, which is a five-year goal. In the meantime, the company is carrying significant interest expenses on a construction-stage asset base.
Revenue recognition will be lumpy and non-linear by management's own admission. The next meaningful step-up comes when the second 150MW building at Polaris Forge 1 goes live around July 1, with phased energization running through September.
Delta Forge 1 won't see initial operations until mid-2027. Investors buying the stock today at $13 billion are paying a steep price for cash flows that are still being built, not earned.
Another important note is that of the $16 billion in disclosed contracted lease revenue, approximately $11 billion is tied to CoreWeave. This is a single customer representing roughly 70% of the contracted backlog. Management has explicitly stated its goal is to shift the mix toward 70% investment-grade tenants, which signals they know the concentration risk is real. Any deterioration in CoreWeave's business or creditworthiness hits Applied Digital disproportionately hard.
Estimates and Valuation
The estimate revision picture offers no support. Analysts have made zero upward revisions over the last 30 or 60 days while cutting current-year estimates, and the Style Scores tell the same story, with a F in Value, F in Growth, and F in VGM.
With a beta of 5.69, this is a stock that moves violently in both directions, and with the AI data center trade having already priced in years of future growth, the risk-reward skews unfavorably from here.
Technicals Look Bleak
The stock has been one of the most volatile in the market, rocketing from a 52-week low of $9 to a high of $50 before settling around $45 today. And for now, the chart still looks good as it trades near the recent highs. However, a break of the $40 level could start a cascade of selling that would cause a test of the 200-day MA down at $32.
In Summary
Applied Digital has a real asset base, real contracted revenue, and a management team executing on an ambitious long-term vision. But at $13 billion in market cap, the stock is pricing in flawless execution on a pipeline that won't fully ramp until 2027 or beyond.
For investors who like their risk-reward balanced, the Zacks Rank #5 says look elsewhere.
Additional content:
META Broadens Instagram TV Reach: Can It Boost User Engagements?
Meta Platformsis benefiting from its strategic expansion of Instagram TV (IGTV) reach, leveraging the platform’s growing emphasis on video content to drive higher user engagement. The company’s focus on enhancing video experiences, including improvements to content recommendations and AI-driven personalization, has led to significant increases in time spent on video features such as Reels and IGTV.
Meta Platforms' expanding portfolio has been noteworthy. The company recently expanded Instagram for TV to Samsung Smart TVs in the United States, adding to its availability on Amazon Fire TV and Google TV devices. The company is also testing new features to make shared viewing easier, including interest-based channels, casting Reels from phones, Stories on TV and support for horizontal videos. META is exploring longer-form creator content, episodic series and live broadcasts tailored for the living room experience. The updates aim to make Instagram a more social, communal viewing platform while helping creators reach audiences on larger screens.
Meta Platforms' AI advancements facilitate the auto-translation and dubbing of videos, making IGTV content accessible to a broader, global audience. Over half a billion users on both Facebook and Instagram now watch AI-translated videos weekly. This broadening of reach increases the potential audience for IGTV creators and enhances the platform’s appeal to advertisers seeking to target diverse demographics with localized content. The company continues to see improvements on Instagram, which have driven a 10% lift in reel time spent, while Facebook saw an 8% increase in total video time globally, the largest quarter-over-quarter gain in four years.
Meta Platform’s strong portfolio is fueling robust financial results and is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects total revenues between $58 billion and $61 billion.
META Faces Stiff Competition
Meta Platforms is facing stiff competition from competitors likeSnap and Reddit. Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.
Reddit is continuing to grow as engagement rises and monetization gets better through a stronger performance ad stack. The company is benefiting from an increase in daily active users and weekly active users, along with a higher average revenue per user and more advertisers using tools like Reddit Max, Dynamic Product Ads and improved measurement. AI-led features, including translation and better discovery, are helping broaden the user base and deepen intent-driven use cases, while content licensing adds diversification.
Snapchat has reached 956 million monthly active users and 483 million daily active users in the first quarter of 2026, driven by continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered automation solutions, AI Sponsored Snaps, Sponsored Snaps, Promoted Places, Dynamic Product Ads and subscription offerings including Snapchat+, Memories Storage and Lens+.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have lost 14.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 20%.
META Stock's Performance
META shares are overvalued, with a forward 12-month Price/Sales of 5.15X compared with the Internet - Software’s 3.66X. META has a Value Score of C.
The Zacks Consensus Estimate for 2026 earnings is pegged at $33.01 per share, which has increased by a penny over the past 30 days. This suggests 40.53% year-over-year growth.
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cboe Global Markets and Applied Digital have been highlighted as Zacks Bull and Bear of the Day

Meta Platforms META is benefiting from its strategic expansion of Instagram TV (IGTV) reach, leveraging the platform’s growing emphasis on video content to drive higher user engagement. The company’s focus on enhancing video experiences, including improvements to content recommendations and AI-driven personalization, has led to significant increases in time spent on video features such as Reels and IGTV.
Meta Platforms' expanding portfolio has been noteworthy. The company recently expanded Instagram for TV to Samsung Smart TVs in the United States, adding to its availability on Amazon Fire TV and Google TV devices. The company is also testing new features to make shared viewing easier, including interest-based channels, casting Reels from phones, Stories on TV and support for horizontal videos. META is exploring longer-form creator content, episodic series and live broadcasts tailored for the living room experience. The updates aim to make Instagram a more social, communal viewing platform while helping creators reach audiences on larger screens.
Meta Platforms' AI advancements facilitate the auto-translation and dubbing of videos, making IGTV content accessible to a broader, global audience. Over half a billion users on both Facebook and Instagram now watch AI-translated videos weekly. This broadening of reach increases the potential audience for IGTV creators and enhances the platform’s appeal to advertisers seeking to target diverse demographics with localized content. The company continues to see improvements on Instagram, which have driven a 10% lift in reel time spent, while Facebook saw an 8% increase in total video time globally, the largest quarter-over-quarter gain in four years.
Meta Platform’s strong portfolio is fueling robust financial results and is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects total revenues between $58 billion and $61 billion.
META Faces Stiff Competition
Meta Platforms is facing stiff competition from competitors like Snap SNAP and Reddit RDDT. Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.
Reddit is continuing to grow as engagement rises and monetization gets better through a stronger performance ad stack. The company is benefiting from an increase in daily active users and weekly active users, along with a higher average revenue per user and more advertisers using tools like Reddit Max, Dynamic Product Ads and improved measurement. AI-led features, including translation and better discovery, are helping broaden the user base and deepen intent-driven use cases, while content licensing adds diversification.
Snapchat has reached 956 million monthly active users and 483 million daily active users in the first quarter of 2026, driven by continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered automation solutions, AI Sponsored Snaps, Sponsored Snaps, Promoted Places, Dynamic Product Ads and subscription offerings including Snapchat+, Memories Storage and Lens+.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have lost 14.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 20%.
META Stock's Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 5.15X compared with the Internet - Software’s 3.66X. META has a Value Score of C.
META's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $33.01 per share, which has increased by a penny over the past 30 days. This suggests 40.53% year-over-year growth.
Meta Platforms, Inc. Price and Consensus
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Reddit Inc. (RDDT) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.