SNAP: 2026 Bull Case Driven by AI and AR InnovationSnap Inc.BATS:SNAPTopgOptionsIf you haven`t sold the double top on SNAP: nor bought the dip afterwards: As we enter 2026, Snap Inc. (SNAP) presents a compelling bullish case for investors willing to bet on a social media turnaround story. Trading around $7.53 with a market cap of approximately $13 billion, the stock is down 91% from its 2021 all-time high, yet it boasts a rock-bottom valuation—price-to-sales near 2.2x, one of its cheapest since the 2017 IPO. With monthly active users (MAUs) approaching 1 billion and daily active users (DAUs) at 477 million (up 8% YoY in Q3 2025), SNAP’s scale is undervalued compared to peers like Meta or Pinterest, setting the stage for a potential rebound if execution aligns. Key tailwinds include SNAP’s aggressive push into AI and AR technologies. Recent partnerships, such as the $400 million deal with Perplexity AI for enhanced search features in Snapchat, signal innovation that could boost user engagement and ad revenue. The upcoming 2026 launch of lightweight AR Specs glasses aims to capitalize on augmented reality commerce, while Snapchat+ subscriptions are already generating ~$700 million in annual recurring revenue. Q3 2025 results showed 10% revenue growth to $1.507 billion and positive free cash flow of $93 million, hinting at improving margins amid cost-cutting efforts. Analysts’ consensus 12-month target sits at $9.86, implying ~30% upside, with some optimistic calls reaching $13–16. On X (formerly Twitter), sentiment leans bullish for 2026: many traders call it a “buy & forget” stock at current levels, with several predicting targets of $17+ in the coming months and $40+ by year-end. Others highlight parallels to Spotify’s (SPOT) 10x run post-profit inflection, noting SNAP’s forward P/E compression to 17x. Reddit discussions emphasize non-U.S. user growth and emerging revenue streams (AI features, AR commerce, subscriptions) as key catalysts for a potential 2–3x winner. Of course, risks persist: Regulatory pressures (e.g., age restrictions in the UK and Australia) and competition from TikTok could cap growth, while recent insider sales add caution. Still, with Q4 2025 earnings on February 3 potentially serving as a catalyst, SNAP’s asymmetric upside makes it a speculative buy for those eyeing tech recovery plays in 2026. If AI/AR bets pay off, this stock could snap back strongly.