Snap Inc.

On August 5, 2025, Snap released its second quarter fiscal 2025 financial results, disclosing a deceleration in advertising revenue growth due to “an issue related to [its] ad platform, the timing of Ramadan and the effects of the de minimis changes.”

On this news, Snap’s stock price fell $1.61, or 17.1%, to close at $7.78 per share on August 6, 2025, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Snap’s optimistic reports of advertising growth and earnings potential fell short of reality as they relied far too heavily on Snap’s ability to execute on its potential; (2) Snap was already experiencing the ramifications of a significant execution error when Defendants claimed a lack of visibility due to macroeconomic conditions; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.