Snap Inc. Shares Plummet 6.6% as Mizuho Initiates Coverage with Neutral Rating

Strategic Insights -

San Francisco-based social media company Snap Inc. saw its stock price drop 6.6% after investment firm Mizuho reportedly initiated coverage on the company with a Neutral rating and a $9 price target. The analyst action comes on the heels of a federal securities class action lawsuit filed against Snap and its senior executives, alleging the company misrepresented its digital advertising platform's performance and future growth prospects. The lawsuit, led by prominent shareholder rights firm Hagens Berman, covers investors who purchased shares between April 29, 2025, and August 5, 2025, and alleges that Snap concealed a major "execution error" related to a recent change in its ad platform.

Key Takeaways:

  • Snap Inc. shares fell 6.6% after Mizuho initiated coverage with a Neutral rating and a $9 price target.
  • Hagens Berman is leading a federal securities class action lawsuit against Snap and its senior executives, alleging the company misrepresented its digital advertising platform's performance and future growth prospects.
  • The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025.
  • Snap admitted it "shipped a change that caused some campaigns to clear the auction at substantially reduced prices" on August 5, 2025, leading to a significant slowdown in ad revenue growth.
  • Hagens Berman is actively investigating the alleged claims and urges investors who suffered substantial losses to come forward.
  • Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the lawsuit alleges a major internal failure was concealed from investors.

Statistics:

  • 6.6%: the percentage by which Snap Inc. shares fell after Mizuho initiated coverage.
  • $9: the price target set by Mizuho.
  • 82%: the deceleration in ad revenue growth from Q1 (9%) to Q2 (1%).
  • 17%: the percentage by which Snap's stock price tumbled the day after admitting the "execution error".
  • 2.9 billion: the total amount secured by Hagens Berman in corporate accountability cases.
  • 30%: the maximum reward that whistleblowers may receive from the SEC Whistleblower program.

Sources:

  • Globe Newswire, "Snap Inc.'s Stock Price Drops 6.6% as Mizuho Initiates Coverage", October 13, 2025.
  • Hagens Berman, "Shareholder Class Action Lawsuit Against Snap Inc. & CEO", retrieved from .
  • Hagens Berman, "SEC Whistleblower Program", retrieved from .