Snap Q1 earnings anticipation

What happened: Snap Inc. (SNAP), a top-traded US stock in 2026, reported mixed first-quarter results on May 12, leading to a 4% drop in extended trading. The company provided cautious sales guidance and revealed the end of its deal with generative AI startup Perplexity. Analyst Saken Ismailov at Freedom Broker downgraded SNAP to 'Hold' from 'Buy', cutting the price target to $7.

Market impact: The bearish sentiment drove SNAP shares down, impacting the social media and tech sectors. The uncertainty surrounding Snap's growth prospects and the termination of the Perplexity deal weighed on investor confidence, pushing SNAP's valuation lower.

What to watch next: Snap's Q2 earnings release on July 21 will provide further clarity on the company's financial health and growth prospects. Additionally, any updates on Snap's strategic partnerships and user growth metrics will be crucial in determining the stock's trajectory.