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Snapchat stock price forecast market strategists note Snapchat stock

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Market strategists note Snapchat stock price forecast has adjusted upward following better-than-expected engagement metrics in May 2024, with 12% YoY growth in time spent per user, bolstering sentiment in tech-focused portfolios. Those messy headline numbers suggested that Snapchat was struggling to keep pace with Meta Platforms ' (NASDAQ: META) Instagram and ByteDance's TikTok. They were also dismal compared to Meta's superior growth rates . But valuation tells a different story. At 2.2x forward sales , SNAP trades at its lowest multiple ever, well below Pinterest’s 4.7x despite a stronger DAU base of 469 million and nearly 932 million MAUs worldwide. Subscriptions are scaling fast, with 16 million paying users generating an annual run-rate near $700 million , and Spotlight engagement has surged to 48% of total viewing time with conversions outperforming legacy formats by a factor of five. Analysts expect free cash flow to expand from $340 million in FY2025 to $900 million by 2027 , a 62% CAGR. At a peer-multiple of 20x FCF, that would imply an $18 billion valuation , nearly 50% upside from the current $12 billion market cap . In the latest trading sessions, Snapchat stock price forecast volatility index dropped by 5%, indicating stabilizing investor sentiment after April’s sell-off.