Benchmark analyst Mark Zgutowicz reiterated a Hold rating on Snap Inc (NYSE: SNAP).

The analyst commented, "WThe company remains in a challenged position as its annual ad share continues to shrink and AI investments have yet to close relative ROAS gaps. Further, a late-‘26E (planned) Specs rollout remains ambiguous in terms of hardware specs, go-to-market, and monetization. On April 15th, SNAP announced a RIF of ~1,000 employees (~16% of global headcount) and closed 300+ open roles, yet still targets total non-GAAP expenses +6% y/y. CEO Evan Spiegel framed it as AI efficiency: 65% of new Snap code is now AI-generated and the restructuring moves the company to smaller, faster teams leveraging AI agents across its core assets. The RIF partially addresses activist concerns re ROIC tied to swelling R&D/infrastructure investments, however, does not address respective concerns re capital misallocation to support the 2H’26E launch of Specs. Separately, management’s reduced ’26E non-GAAP opex outlook appears to not fully flow through the implied 1QE opex leverage (preannounced adj. EBITDA) and stated annualized RIF savings, suggesting other cost factors at play or conservatism."

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Shares of Snap Inc closed at $6.29 yesterday.