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Snap inc earnings are coming up on may 6. A lot of people expect the state of daily active users in North America to be the determining factor in how the stock price will move after the report. They argue that’s the main concern for shareholders. It makes sense because for the past many quarters numbers have been flat or even declining and it’s a concern because it’s their most profitable region by far. I however believe that it’s not a big concern because the market is simply maturing and because of that they are deliberately going for profitability at the expense of growth. I think the bigger factor in how the stock price will move right after the report is how well Snapchat+ subscriptions are going. The reason most people are worried about North American DAUs is pure math. North American users are roughly 3x more valuable than European users and 10-15x more valuable than those in the "Rest of World" category. In recent quarters (including Q4 2025), North American DAUs actually declined by 5-6% year-over-year (dropping to around 94 million). If the user base in the most profitable region shrinks, the advertising engine has to work twice as hard just to keep revenue fl

39 pts · 21 comments · u/lies_are_comforting · 2026-04-26 16:17 UTC