Snap Inc (NYSE:SNAP) shares are higher in pre-market trading Wednesday as traders leaned into the company’s profitability reset, the CFO transition and a 1,000-job cost-cut plan. The move is getting a tailwind as tech stocks broadly lead the market higher.
- Snap shares are advancing steadily. What’s driving SNAP shares up?
What Is Driving Snap’s Recent Stock Movement?
Snap’s bounce early Wednesday follows a rougher tape earlier in the week, when the stock slid as investors weighed a first-quarter outlook that included $1.529 billion in revenue and $233 million in adjusted EBITDA alongside $95 million to $130 million in restructuring charges.
Investors are also weighing CFO Derek Andersen’s exit on April 17 after nearly eight years with the company, with Doug Hott set to take over. The company is also cutting about 1,000 jobs (16% of its workforce) and eliminating more than 300 open roles as it targets annualized savings of over $500 million by the second half of 2026.
Andersen is expected to participate in his final earnings call on May 6, with his last day set for May 8, and Doug Hott is stepping in from his role as vice president of finance, strategy, and corporate development in a move that puts execution front and center.
The broader restructuring includes a team reorg (workplace experience moving under Chief People Officer Scott Withycombe and content shifting into the product group led by Ceci Mourkogiannis) as management points to a “clear path to net income profitability.”
Snap also lowered its 2026 expense outlook to $2.75 billion and stock-based compensation to $1.05 billion, while flagging restructuring charges of $95 million to $130 million.
Critical Levels To Watch For Snap Stock
Snap is trying to build a base off its March swing low after failing to hold January’s rebound, and the restructuring narrative is keeping traders focused on whether the bounce can turn into a steadier trend. The stock is trading 15.1% above its 20-day simple moving average (SMA) and 8.7% below its 100-day SMA, a split that points to near-term momentum improving while the intermediate trend still needs repair.
The moving average convergence divergence (MACD), a trend/momentum measure, is bullish with the MACD line above the signal line, which leans toward improving upside pressure since the June 2025 bullish cross. When MACD stays above its signal line, it typically means buyers are gaining control faster than sellers.
Over the last 12 months, the stock is down 28.15%, which fits the picture of rallies struggling to become durable uptrends. Within the $3.81 to $10.41 52-week range, shares remain well off the highs, so overhead supply can still matter on rebounds.
- Key Resistance: $6.50 — a common area where rebounds have tended to stall first.
- Key Support: $5.00 — a “line in the sand” zone where dip-buying often shows up.
Snap Earnings Preview: What Analysts Expect
The countdown is on: Snap is set to report earnings on May 6.
- EPS Estimate: Loss of 8 cents (Unchanged from loss of 8 cents YoY)
- Revenue Estimate: $1.52 Billion (Up from $1.36 Billion YoY)
- Valuation: P/E ratio not provided
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $7.89. Recent analyst moves include:
- Stifel: Hold (Raises Target to $5.25) (April 21)
- BMO Capital: Outperform (Raises Target to $15.00) (April 16)
- Guggenheim: Neutral (Maintains Target to $6.50) (April 16)
Snap Stock Price Activity In Premarket Trading
SNAP Stock Price Activity: Snap shares were up 1.41% at $5.72 during premarket trading on Wednesday, according to Benzinga Pro data.
Image: Shutterstock
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