Snap (XSWX:SNAP) Moat Score : 5/10 (As of Jun. 22, 2025)

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What is Snap Moat Score?

Snap has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Snap has Narrow Moat: Snap Inc benefits from network effects and a strong brand among younger demographics. However, it faces intense competition from larger social media platforms, limiting its pricing power and market share sustainability.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Snap might have Narrow Moat - Solid narrow moat.

Competitive Comparison of Snap's Moat Score

For the Internet Content & Information subindustry, Snap's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Snap's Moat Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Snap's Moat Score distribution charts can be found below:

* The bar in red indicates where Snap's Moat Score falls into.

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Snap (XSWX:SNAP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Snap Moat Score Related Terms

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Snap Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Snap Inc (XSWX:SNAP) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

SNAP:USA SNAP:Mexico 1SNAP:Italy 1SId:UK 0RNH:UK 1SI:Germany SNAP:Austria SNAP:Argentina

Address

3000 31st Street, Santa Monica, CA, USA, 90405

Website

https://www.snap.com

Snap is a technology company best known for its marquis social media application Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.