Core Viewpoint - Snap Inc. shares declined by 6.6% following Mizuho's initiation of coverage with a Neutral rating and a $9 price target, describing the company as a "show-me story" due to weak feedback from its advertising channels [1] Group 1: Legal Issues - A federal securities class action lawsuit has been filed against Snap and certain senior executives, alleging that the company misrepresented its digital advertising platform's performance and future growth prospects [2] - The lawsuit claims that Snap faced significant negative consequences from a major "execution error" related to a recent change in its ad platform, which was not disclosed to investors during the Class Period [6] - The alleged deception became apparent on August 5, 2025, when Snap reported Q2 2025 results, admitting that a change caused campaigns to clear the auction at substantially reduced prices, leading to a slowdown in ad revenue growth from 9% in Q1 to just 1% in April [7] Group 2: Investor Actions - The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025 [8] - Hagens Berman, a shareholder rights firm, is investigating the claims and encourages investors who suffered losses to come forward, focusing on whether management concealed the operational problem [11] - Whistleblowers with non-public information regarding Snap are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program [13]

Core Insights - Snap's shares have declined by 9.2% following disappointing consumer sentiment readings for September, which came in at 94.2, down 3.6 points from August and below the expected 96.0 [1][4] - OpenAI has launched a new social video app called Sora, which could pose a competitive threat to Snap and other short-form video platforms, as it features AI-generated content and a user interface similar to TikTok [2][3][6] - Snap continues to face challenges in profitability, reporting over $400 million in net losses in the first half of the year, despite being down nearly 30% year-to-date and trading at 29.7 times 2025 earnings estimates [6][7] Group 1 - Snap's stock is under pressure due to lower consumer sentiment and competition from OpenAI's new app [1][4][6] - The launch of Sora could potentially erode Snap's market share, which is already facing competition from TikTok and Instagram [2][3] - Snap's financial health is concerning, with significant net losses and reliance on advertising revenue, which may be impacted by lower consumer spending [4][7] Group 2 - The disappointing consumer sentiment data released by the Conference Board is affecting consumer-oriented stocks, including Snap [4] - OpenAI's Sora app allows users to create and remix videos, which may attract users away from Snap [2][3] - Despite being seen as a potential value investment, Snap's high stock-based compensation costs complicate its earnings outlook [7]

Core Viewpoint - The Snap Inc. class action lawsuit alleges that the company and its executives misled investors regarding advertising revenue and growth expectations, leading to significant financial losses for shareholders during the specified class period [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Abdul-Hameed v. Snap Inc., No. 25-cv-07844 (C.D. Cal.), and it involves purchasers of Snap securities from April 29, 2025, to August 5, 2025 [1]. - Investors have until October 20, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit claims that Snap's executives created a false impression of reliable advertising revenue information while downplaying macroeconomic instability [3]. Group 2: Allegations and Impact - On August 5, 2025, Snap reported disappointing second-quarter results, revealing a significant deceleration in advertising revenue, which was partly attributed to a change that led to reduced auction prices for campaigns [4]. - Following the release of these results, Snap's stock price fell by more than 17% [4]. Group 3: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Snap securities during the class period to seek lead plaintiff status, representing the interests of the class [5]. - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone [6].

Core Viewpoint - A class action lawsuit has been filed against Snap, Inc. for allegedly providing misleading statements regarding its advertising revenue growth, leading to significant losses for investors during the specified class period [8]. Allegation Details - The lawsuit claims that Snap's management made overly positive statements about the company's performance while concealing material adverse facts about its advertising revenue growth rate, which dropped from 9% in Q1 to only 1% in April [8]. - Snap's financial results announced on August 5, 2025, revealed a deceleration in advertising revenue growth, attributed to issues with its ad platform and other factors [8]. Stock Price Impact - Following the announcement of disappointing financial results, Snap's stock price fell from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, marking a decline of approximately 17.15% in one day [8]. Next Steps for Investors - Investors who purchased Snap shares during the class period and suffered losses are encouraged to contact the law firm Bragar Eagel & Squire for more information and to discuss their legal rights [4][8].

Core Viewpoint - A securities class action lawsuit has been filed against Snap Inc. and certain senior executives, alleging that the company misled investors regarding its digital advertising platform's performance and growth prospects [1][5]. Summary by Relevant Sections Lawsuit Details - The lawsuit targets investors who purchased Snap shares between April 29, 2025, and August 5, 2025, and seeks to hold the company accountable for investor losses [1][5]. - The complaint claims that Snap provided false assurances about the effectiveness and growth potential of its advertising platform, failing to disclose a significant "execution error" that negatively impacted its ad revenue [5][10]. Financial Performance - Snap reported its Q2 2025 results on August 5, 2025, missing analyst estimates for GAAP EPS and revealing a slowdown in ad revenue growth from 9% in Q1 to just 1% in April [6]. - Following the disclosure of these results, Snap's stock price dropped approximately 17% the next day [7]. Investigation and Call to Action - Hagens Berman, a law firm representing investors, is investigating the claims and encourages those who suffered losses to come forward [8][10]. - The firm is particularly interested in whether Snap was aware of the execution error and the resulting revenue deceleration but chose to delay disclosure [10].

Core Insights - Snapchat has introduced new storage plans for users who exceed the 5GB free limit for Memories, offering options of 100GB, 250GB with Snapchat+, and 5TB with Snapchat Platinum [4] - The company will provide 12 months of temporary storage for Memories that exceed the free limit, allowing users time to decide on upgrades [4][1] - Snapchat aims to transition users from free services to paid plans by emphasizing the value of Memories [2] User Engagement and Market Strategy - Snapchat reports over 250 million monthly users globally, with 70% of them being Gen Z [3] - The platform has seen increased engagement, particularly in India, where total time spent on the app has doubled over the past two years [4][3] - India is a key focus for Snapchat's global creator strategy due to its rapid growth and significant content contribution [3]

Core Points - A securities fraud class action lawsuit has been filed against Snap Inc. for alleged misrepresentations regarding its advertising revenue growth rate [2] - Investors who purchased Snap securities between April 29, 2025, and August 5, 2025, are eligible to participate in the lawsuit [2] - The deadline to file as a lead plaintiff in the class action is October 20, 2025 [3] Legal Context - The lawsuit was initiated in the United States District Court for the Central District of California, targeting Snap and certain senior officers for violations of the Securities Exchange Act of 1934 [2] - The firm representing the investors, Bernstein Liebhard LLP, has a history of recovering over $3.5 billion for clients and has been recognized for its litigation success [4]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Snap Inc. regarding a class action lawsuit due to allegations of misleading statements about the company's advertising revenue growth, which significantly declined from 9% to 1% during the specified period [1]. Summary by Sections Allegations - The complaint alleges that Snap Inc. provided overly positive statements to investors while concealing material adverse facts about its advertising revenue growth rate [1]. - The advertising revenue growth rate reportedly dropped from 9% in Q1 to only 1% in April 2025, attributed to execution failures within the company [1]. Financial Impact - On August 5, 2025, Snap announced its Q2 financial results, revealing a slowdown in advertising revenue growth due to issues with its ad platform and other factors [1]. - Following this announcement, Snap's stock price fell from $9.39 per share on August 5 to $7.78 per share on August 6, representing a decline of approximately 17.15% in one day [1]. Class Action Details - Shareholders who purchased shares of Snap during the class period from April 29, 2025, to August 5, 2025, are encouraged to register for the class action lawsuit [2]. - The deadline for shareholders to seek lead plaintiff status is October 20, 2025, and there is no cost or obligation to participate in the case [2].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Snap Inc. securities between April 29, 2025, and August 5, 2025, of the upcoming lead plaintiff deadline on October 20, 2025, for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Snap securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting the law firm or visiting their website [3][6]. - The lead plaintiff must file a motion with the Court by October 20, 2025, to represent other class members in the litigation [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting their own achievements in recovering hundreds of millions for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including a record settlement against a Chinese company and being ranked No. 1 for settlements in 2017 [4]. Group 3: Case Allegations - The lawsuit alleges that Snap's management misled investors by presenting overly optimistic expectations regarding advertising revenue and growth, while downplaying significant execution errors and macroeconomic challenges [5]. - When the true situation was revealed, investors reportedly suffered damages due to the discrepancies between Snap's claims and actual performance [5].

Core Viewpoint - Investors in Snap Inc. have the opportunity to lead a securities fraud class action lawsuit due to alleged misleading statements regarding the company's advertising growth and earnings potential [1][2]. Summary by Sections Lawsuit Details - The lawsuit claims that between April 29, 2025, and August 5, 2025, Snap's management failed to disclose critical information, including: 1. Snap's optimistic reports on advertising growth and earnings potential were not aligned with reality, as they overly depended on the company's execution capabilities [2]. 2. Snap was facing significant execution errors, contrary to the management's claims of lacking visibility due to macroeconomic conditions [2]. 3. The positive statements made by the management regarding the company's business and prospects were materially misleading and lacked a reasonable basis throughout the relevant period [2]. Participation Information - Investors who suffered losses on their Snap investments are encouraged to participate in the class action lawsuit before the lead plaintiff deadline of October 20, 2025 [2]. - Interested parties can contact Glancy Prongay & Murray LLP for more information regarding participation and their rights [3][4]. Contact Information - For inquiries, investors can reach out to Charles Linehan at Glancy Prongay & Murray LLP, located at 1925 Century Park East, Suite 2100, Los Angeles, California 90067, via email or telephone [3][5].