• Everyday Alpha
  • Posts
  • Snapping Back to Life, One App’s Big Moment Is Here

Snapping Back to Life, One App’s Big Moment Is Here

A once-beloved social media stock is facing its most important earnings test in years. After months in the red, expectations are rising, but so are the risks.

Can new ad formats, expanding user growth, and AI-powered tools turn things around in time? Find out why traders are watching this name heading into earnings.

Never Miss a Stock Alert Again!

We now send our daily picks via SMS too — so you’ll get the same high-conviction ideas, even if you miss the email.

Amazon | AMZN

Price: $211.65

Amazon’s recent earnings call brought mixed reactions, but mostly disappointment. Despite decent top-line results, investors zeroed in on Amazon Web Services (AWS), where growth failed to accelerate in line with peers like Microsoft and Google.

The result was a 6% post-earnings dip that’s sparked “buy-the-dip” chatter from big-name analysts.

Behind the scenes, Amazon is ramping up capital spending, with over $31 billion invested last quarter, largely to support AI infrastructure. UBS and Citi both raised their price targets, calling the spending spree justified given continued demand.

Still, sentiment remains split on whether Amazon can regain its AI edge.

While AWS’s slower momentum may weigh on short-term perception, Amazon’s long-term track record in capital allocation, logistics scale, and platform monetization remains a key draw.

With a forward P/E near 33 and multiple tailwinds across e-commerce, cloud, and advertising, Amazon is still in the game, just not leading it right now.

Might be worth it for the longer-eyed investors, though.

Tactical Picks Alert (Sponsored)

Looking for better entry points and smarter trade ideas?

This brand-new list features 7 lesser-known stocks with strong earnings momentum and proven setups — based on a system with decades of outperformance.

These are stocks built for short-term movement and long-term value, and they’re not on most watchlists… yet.

Click below to grab the report and see what sets these names apart.

AT&T | T

Price: $27.68

AT&T is making waves for more than its dividend. The telecom giant recently became one of the first major corporations to list simultaneously on both the New York Stock Exchange and the newly launched NYSE Texas.

The move, which shows its Texas roots, is being hailed as symbolic, but potentially strategic.

This follows a strong Q2 earnings report showing $30.85 billion in revenue and EPS of $0.54, beating consensus estimates.

Analysts are cautiously optimistic, with some raising targets on the back of improving 5G coverage, steady broadband gains, and a leaner operating structure post divestitures.

AT&T’s 4% dividend yield continues to attract income investors, and with standalone 5G deployments accelerating, the company could carve out a more premium position in a fiercely competitive market.

For now, it’s less about growth flash and more about consistency, and that’s not a bad thing in this climate.

Micron Technology | MU

Price: $107.77

Micron is having a breakout year. The memory chipmaker has surged more than 35% YTD and continues to outpace bigger semiconductor names like AMD and NVIDIA.

A big part of the rally is tied to AI, with Micron emerging as a critical supplier of high-bandwidth memory (HBM) for AI accelerators and GPUs.

Beyond the AI buzz, Micron is executing well on fundamentals. Revenue and EPS forecasts have climbed sharply, and the company’s pivot to industrial and automotive memory solutions is helping smooth out cyclical bumps.

Its deal with NVIDIA to supply next-gen HBM for Blackwell GPUs also reinforces its position in the AI stack.

Despite the run-up, valuation remains reasonable relative to peers. MU trades at a forward P/S of 2.7 versus 7.3 for AMD and nearly 19 for NVIDIA.

For investors looking to ride the AI infrastructure buildout without paying nosebleed multiples, Micron may still offer a compelling risk-reward setup.

Post-Selection Advantage (Sponsored)

No matter how you feel about him, President Trump is shockingly effective at getting things done in Washington.

The sweeping changes have already opened the door for significant wealth-building opportunities.

According to our research, a handful of surprising stocks are on the verge of explosive breakouts.

Trump's policies could send these 6 unexpected stocks soaring.

*This resource is provided by Zacks.com for informational purposes only. It is not investment advice. Use of this resource is subject to the Zacks Terms of Service.
*Past performance is not a guarantee of future results. All investments carry risk. Information is subject to change. No recommendation or suitability is implied.

Snap Inc. | SNAP

Price: $9.47

Snap is heading into earnings on August 05 with a lot to prove. The social media firm is expected to post modest top-line growth, but profitability remains elusive.

Infrastructure spending tied to AI-driven ad targeting has weighed on margins, and investor patience is running thin.

That said, there are a few bright spots. Daily active users are expected to top 468 million, driven by growth in emerging markets.

Direct Response advertising, which now makes up 75% of ad revenue, continues to deliver higher engagement and improved campaign outcomes, a key selling point to SMB clients.

Snap is also evolving its ad platform with Sponsored Snaps and privacy-safe tools, hoping to reignite advertiser interest.

While cost discipline is improving, margin expansion still hinges on scaling those new features without alienating users. This quarter, Snap could set the tone for the rest of the year.

Gap Inc. | GAP

Price: $19.52

Gap just reported a surprisingly strong quarter, beating both revenue and earnings expectations. But the rally was short-lived.

Management warned of up to $150 million in tariff-related costs hitting the back half of fiscal 2025, and investors wasted no time in punishing the stock.

Despite the after-hours drop, there’s more to this story. Gap is outperforming retail peers this year, with a leaner inventory model, improved digital conversion, and momentum at key banners like Old Navy.

While Athleta and Banana Republic still lag, cost discipline and sharper brand focus are helping the company regain its footing.

Valuation remains attractive, trading at just under 12x forward earnings. With management reaffirming full-year EPS targets despite the tariff drag, Gap may be oversold on near-term headline risk.

Investors with a longer horizon may view this as a classic “bad news = opportunity” setup, assuming the trade war doesn’t escalate further.

The latest jobs report showed just 73,000 new positions added in July, the weakest print since early 2021.

Tariffs are rising, Fed governors are splitting, and August is historically one of the toughest months for the market. In this environment, guidance and execution matter more than ever.

The companies in today’s report, from Snap to Gap, show how investor sentiment can shift quickly based on policy risk, margin pressure, and leadership clarity.

That means every earnings season headline could have an outsized impact.

Stat of the Day

4.2% — The new unemployment rate, up from 3.9% in May. It’s the highest level since early 2022 and a signal that labor slack may be returning faster than expected.

Best Regards,
—Noah Zelvis
Everyday Alpha