In the latest trading sessions, Snapchat stock price forecast volatility index dropped by 5%, indicating stabilizing investor sentiment after April’s sell-off. Even with these strengths, Snap's challenge is that it operates in a competitive arena, battling rivals such as TikTok and Meta -owned Instagram for users and advertising dollars. Estimates place Snap's share of the digital advertising market at around 2%. Contrast this with Meta's 20% share. At current levels, Snap trades at just 2.2x forward sales , well below peers like Pinterest (4.7x), reflecting skepticism over profitability. On a non-GAAP basis, SNAP trades at 26.6x FY2025 EPS , falling to 18.4x in FY2026 as consensus projects normalization in spending. Free cash flow estimates point to $340 million in FY2025 , ramping to $900 million by 2027 , implying a 62% CAGR. If achieved, Snap would be valued at just 13.5x 2027 FCF , while most peers growing cash flow at this rate trade above 20x . At that multiple, Snap’s valuation would expand toward $18 billion , nearly 50% upside from its current $12 billion market cap . 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.