Snap (SNAP) extended its losing streak to the seventh straight session on Friday as the stock ended 1.94% lower at $4.56.
The stock has taken severe blows in the past few sessions, ending -4.32% on Thursday and losing 4.29% on Tuesday. In the six previous sessions, SNAP lost nearly 13% compared to a 2.3% drop in the broader markets.
Earlier in the day, Ofcom, the communication services regulator in the UK, sent a letter to Facebook, Instagram (META), Roblox (RBLX), Snapchat (SNAP), TikTok (TIKTOK), and YouTube (GOOG) (GOOGL) asking them to tighten rules to help keep underage children off their platforms.
Ofcom said it will report on how the companies have responded and will announce any next steps for regulatory action in May. This comes as several countries explore social media restrictions for kids, amid increasing distrust over the firms’ ability to keep children safe on their platforms.
As per Seeking Alpha’s quant rating, the stock has a Hold rating with a score of 2.82 out of 5. SNAP has been rated an A for growth, while it scored a D+ for valuation. Wall Street analysts also held a cautious stance with a Hold rating. However, Seeking Alpha analysts had a Buy call on the stock.
Last month, several analysts expressed optimism over the stock following its quarterly results. Snap reported Q4 revenue and earnings beats, supported by strong ad pricing and user growth outside North America.
Despite losing 4M daily active users in North America, Snap reported 6% Y/Y global MAU growth in Q4 2025, reaching 946M, Seeking Alpha analyst The Asian Investor noted.
“I like the setup here and believe the social media platform could be a major winner in 2026 if the company reaches its 1 billion MAU goal,” it added.