Intense Competition for User Attention and Ad Spend: Snap operates in a highly competitive market, vying with established tech giants and emerging platforms for user engagement and advertising revenue, which can impact user growth, retention, and pricing power.

Reliance on Advertising Revenue: The vast majority of Snap's revenue is derived from advertising, making it highly susceptible to fluctuations in advertiser demand, economic downturns, and changes in ad industry dynamics, including privacy policy shifts by third parties like Apple.

Challenges in User Growth and Engagement: Snap faces ongoing difficulties in consistently expanding its daily active user base and maintaining high levels of user engagement, especially in saturated markets and among diverse demographics, which can hinder its long-term growth prospects.