Snap

SNAP

Internet Content & Information · Communication Services

Price

$4.53

-0.17 (-3.52%)

Market Cap

$7.66B

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+10.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.56B (2021) → 1.72B (2025)

Snap Inc. makes Snapchat, a social media app where people send photos and short videos that disappear after being viewed. The app is especially popular with teenagers and young adults, and it also offers Stories, Spotlight (short viral videos), and augmented reality "lenses" that overlay digital effects on your face or surroundings. Snap competes in the social media industry alongside much larger platforms like Meta and TikTok.

Snap makes almost all of its money by selling digital advertising to businesses that want to reach its young audience. The company operates globally but earns the majority of its revenue in North America, and it generates roughly $5 billion in annual revenue. Its main competitive advantage is its strong hold on younger users, but it faces serious pressure from TikTok and Instagram, which compete for the same audience and advertising dollars — and Snap's ongoing operating losses mean it must grow ad revenue significantly to reach sustained profitability.

Winston Score History

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on SNAP in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+36.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$1.8B/ year

→ Flat (+5% vs prior year)

29.9% of revenue

2.5x the sector average (12%)

Steady R&D investment year-over-year

Insider Activity

36.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$1.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Snap is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

56.5%

Premium pricing power — 56.5% gross margin

Operating Margin

-4.9%

Losing money on operations — -4.9%

ROCE

-1.3%

Weak — -1.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+10.3%

Steady sales growth (10.3% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

10.0%

Modest free cash flow (10.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.71

Elevated debt (1.71)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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