Snap is the sole defendant in a Los Angeles jury trial over claims that features such as Snapstreaks and endless scrolling harmed two teenage plaintiffs, with opening statements set for November 4, the same day it reports third-quarter results. Meta settled with the last remaining plaintiff on October 30, and Snap fell 5.99% to $5.34 that day. Snap disputes the allegations, and a settlement before openings remains possible, while plaintiffs' lawyers expect the trial to run until mid-December. Management expects restructuring savings to show up more fully in Q3, with Street estimates around $337 million in EBITDA on about $1.73 billion in revenue. TIKR's mid-case target is about $8.40 by December 31, 2030, roughly 57% above $5.34, while Wall Street's 12-month mean target is about $7.40.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- Snap Sinks 14% in a Week on Social Ad Fears, Then Settles Its Teen Addiction Trial
Snap shares fell 14% over the past week, mostly because weak ad results from Alphabet, Reddit and Pinterest hit social media stocks. Meta settled a teen addiction trial, leaving Snap as the sole defendant until it settled with the two teenage plaintiffs on Monday, before opening statements. Analysts expect third-quarter EBITDA of about 337 million USD on 1.73 billion USD revenue, both in the upper half of guidance of 1.70–1.74 billion USD revenue and 300–350 million USD adjusted EBITDA. Full-year EBITDA estimates of 1.32 billion USD would require roughly 502 million USD in the fourth quarter alone. Snap trades at 1.3x forward sales versus a five-year average of 4.0x, and the average analyst target of about 7.40 USD sits roughly 36% above Monday's close; the article warns that further trials could force product changes, and that fourth-quarter guidance similar to Pinterest's could lead analysts to cut the 502 million USD estimate.
- Snap Sinks 2% as Teen Addiction Trial Opens
Snap shares fell 2% as jury selection began in its first trial over youth social media addiction in Los Angeles, with Meta also a defendant. Two teenagers say social media hooked them and harmed their mental health; the plaintiffs seek compensatory and punitive damages without naming an amount, while Snap says the claims misrepresent their experiences on Snapchat. Snap's free cash flow reached $705.5 million over the twelve months to June 2026, while Meta agreed to settle with 52 state attorneys general for up to $18.59 billion and posted negative $2.12 billion of third-quarter free cash flow amid heavy AI spending. Snap reports third-quarter results on Nov. 4, with revenue guidance of $1.70-$1.74 billion. The author sees court-ordered product changes as the bigger risk and considers the drop a fair reaction, since Snap has much less room than Meta to pay a large verdict.
- Meta Climbs 4% on Muse Retention Data; Snap Rises 3%, Reddit Falls 3%
Meta Platforms rose 4% to $744.72 after third-party data from Sensor Tower showed its AI agent Muse retains 73% of new users the day after install, above ChatGPT's comparable figure, though ChatGPT pulls ahead between the eighth and ninth day. Snap gained 3% to $6.45, while Reddit fell 3% to $155.23 and is down 32% so far this year, with no company announcement explaining the drop. Similarweb data put Muse daily active users at 2.182 million on October 5, but major shopping sites are increasingly blocking AI agents, limiting what Muse can complete. Meta trades at a forward P/E of 22x, below its 52-week high of $779.82. Snap reports earnings on November 4, which could increase share-price volatility.
- AI agent disputes head to 'Internet Court' — and a jury of AI agents
GenLayer, an open delegated proof-of-stake network of validators connected to AI models, currently processes around 12,000 decisions per day in beta, with mainnet expected next month. Internet Court is a protocol that lets agents and humans sign contracts, with funds held in escrow until the terms are judged to have been met. A dispute is first judged by a randomly selected jury of five validators, each running a different AI model, and can be appealed to juries of 11, 23 and more, with finality typically within 30 minutes. The team argues that using many AI models rather than one reduces the bias of any single system, and the court's consortium has 35 members including ZKsync, NEAR, Consensys and UMA. GenLayer is used by Collective Memory to assess user-uploaded photos and by Argue.fun to resolve arguments.
- Snap Stock Falls on Earnings. Its Smart Glasses Offer No Quick Fix.
Snap reported revenue of $1.72 billion, below analyst estimates of $1.73 billion. The results prompted a sharp drop in the share price.
- Snap shares fall over 10% on third-quarter revenue miss
Snap shares fell more than 10% after parent company Snapchat's third-quarter revenue and daily active users missed analyst expectations. Revenue was $1.72 billion versus $1.73 billion expected per LSEG, and global daily active users were 495 million versus 499 million expected per StreetAccount. Average revenue per user (ARPU) was $3.48, in line with expectations, while revenue rose 14% year over year and net income was $56 million, compared with a $104 million net loss a year earlier. Snap guided fourth-quarter revenue to $1.95 billion to $1.99 billion, with a midpoint above Wall Street's $1.95 billion estimate. The company also said that starting in the first quarter of 2027 it will make global monthly active users its “primary audience metric,” arguing a longer-term horizon better reflects its product and safety decisions.
Related markets
Latest news
- Mercado Bitcoin says phased reopening to begin Monday, will cover losses
Brazilian crypto exchange Mercado Bitcoin said it will begin restoring customer account access on Monday after a hack that blockchain analysts estimated stole more than $46 million in assets. Initially, customers can only view balances, statements, holdings and investments through the website, while transfers, withdrawals and trading will resume in later phases after independent security testing. The company pledged to use its own funds to replenish affected assets and said more than $15 million in stolen funds has already been frozen with help from the industry. Its trading desk is preparing repurchases in domestic and international markets. The company also cited a $20 million investment from stablecoin issuer Tether, which it said supports operational expansion and a strong cash position.
- A Major Neocloud Stock Rally May Be Coming. These 3 Stocks Could Be the Biggest Winners.
Neocloud stocks fell sharply over the past month, with Nebius down 42%, TeraWulf down roughly 30% and Cipher Digital down almost 60%. Iren took the hardest hit in October and trades near $20, about a third of its all-time high, ahead of its fiscal 2027 Q1 report on Nov. 5. The company has a 5.8-gigawatt pipeline and plans to bring 500 megawatts online in 2027, raising its delivered total to 800 megawatts, which the article says could produce $16 billion in annual recurring revenue at $20 million per megawatt. Nebius reported Q2 revenue up 454% year over year, secured a $3.5 billion financing facility from Citi in October and is still up year to date. CoreWeave's Q2 revenue more than doubled to $2.6 billion and its backlog reached $104.2 billion, but its 0.46 current ratio and upcoming debt maturities lead the author to rank it as his least favorite of the three.
- Kratos Defense & Security Solutions (KTOS) Stock Faces New Congress Risk After Election Shift
Democrats have won control of Congress after the latest US elections, and leadership of defense policy committees is expected to shift to Democratic chairs who have signaled interest in revisiting long-term Pentagon spending priorities. Contractors focused on advanced systems such as unmanned platforms and space technologies could face a reshuffle of funding emphasis and procurement timelines. Kratos Defense & Security Solutions supplies technology, hardware, systems and software across defense, national security and commercial markets, and has a market cap of $7.7b. The article notes that a NASA Space Reactor 1 Freedom subcontract supports the view that Kratos is also a space infrastructure supplier alongside Lockheed Martin and Northrop Grumman, not just a Pentagon contractor. It also argues that this political shift should not dominate how Kratos is assessed.
- Has Discovery Mining (TSX:DSV) Stock Earned Its Premium After New Permits?
Discovery Mining's share price has gained 1,688.7% over the past three years, raising the question of whether current earnings can justify its valuation. Fresh permits for the Cordero project and planned gold production at the Porcupine Complex could shift the timing and scale of future cash flows. The stock trades on a P/E of 26.7x, roughly double the Metals and Mining sector average of 13.4x but below the peer group average of 37.8x. Using a tailored fair-value model that weighs growth, profitability, size and risk, the article says the 26.7x P/E screens as overvalued compared with what that framework would typically assign to this profile. It argues the Cordero and Porcupine milestones are already reflected in the price, so investors need to judge whether earnings can justify paying above that modelled level.
- Nov 5: What to Read Before the Trading Session?
The digest highlights key news before the trading session: world gold prices are down nearly 30% from their January 2026 peak as real interest rates and the USD rose together. DatViet VAC (HOSE: DVV) shares hit the floor price for a second straight session right after listing. Hanoi approved 5 urgent public investment projects totaling 42,846 billion VND, including two railway projects worth nearly 40,200 billion VND. The State Bank of Vietnam (NHNN) launched 6-month FX swaps for credit institutions, while HFIC announced the transfer of its nearly 8.49 million Eximbank shares. Nguyễn Đỗ Lăng registered to sell 20 million shares of APS and API from 05/11 to 04/12, while PV GAS's profit rose 80% on oil and LNG prices.
- Why an equal-weight S&P 500 fund can reduce Big Tech risk
Big Tech companies dominate traditional S&P 500 index funds. Investment expert Dryden Pence explains how equal weighting can help investors diversify their portfolios.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.