Snap Stock Jumps 4% After Brutal Week Sparked by Pennsylvania Lawsuit
TLDR
- Snap stock rose 4.1% in pre-market trading on August 31, reaching $5.65, partially recovering from a 9% drop on August 26.
- Pennsylvania’s Attorney General filed a civil lawsuit against Snapchat on August 25, alleging the platform was engineered to foster compulsive use among minors.
- Snap’s Q2 2026 earnings showed revenue up 19% year over year to $1.6 billion, with daily active users hitting 493 million.
- Following Q2 earnings, Barclays and Freedom Broker raised their ratings and price targets on the stock.
- Snap faces ongoing legal risk, with October trials ahead and a smaller balance sheet than Meta, which settled similar claims for $17.1 billion.
Snap stock bounced back 4.1% in pre-market trading on August 31, hitting $5.65, as investors returned to the stock after a steep legal-driven drop earlier in the week.
The recovery comes after Pennsylvania’s Attorney General filed a civil lawsuit against Snapchat on August 25. The complaint alleged the platform was deliberately built to hook minors, pointing to features like disappearing messages, infinite scrolling, and restorable Snapstreaks.
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