Snap Stock: Retail Traders Drive 11% Surge on Buyout Rumors and Meme Rally Hopes

TLDR

Table of Contents

Snap stock jumped 11.2% in recent trading sessions as retail sentiment reached extremely bullish levels
Buyout speculation intensified with tech giants reportedly considering potential acquisition deals
Retail traders positioned for potential meme stock rally with message volume hitting high levels on trading platforms
Short interest reached 8.50%, the highest since early 2020, fueling short-squeeze speculation
TikTok ban discussions added momentum as traders speculated about potential beneficiaries

Snap stock has captured retail trader attention with an 11% surge that combines buyout speculation with meme stock rally potential. The social media company’s shares climbed to $8.16 in regular trading before extending gains to $8.72 in pre-market sessions.

Retail sentiment indicators show extremely bullish readings at 83 out of 100 on major trading platforms. Message volume spiked to high levels as Snap became the top-trending equity ticker among retail traders.

The stock gained over 11% last week with trading volume more than doubling its three-month average across all five sessions. This volume surge suggests both retail and institutional interest in the current price movement.

$SNAP
An impressive 16.5% surge to $9.50 in overnight trading. 🚀
The company's release of Snap OS 2.0 software and next-generation AR glasses poses a direct challenge to $META's smart glasses. Despite sharing characteristics of a penny stock, $SNAP's low entry barrier could… pic.twitter.com/vbudroSSHs
— Strats Labs (@StratsLabs) September 22, 2025

Buyout Speculation Gains Credibility

Acquisition rumors continue supporting the stock rally as various tech giants reportedly consider potential deals. The company’s market value of $13.79 billion makes it an attractive target for larger tech firms seeking AR technology and younger user demographics.

Previous acquisition attempts have surfaced in recent court proceedings. An email presented at the Meta antitrust trial showed Mark Zuckerberg made a $6 billion buyout offer for Snap in 2013 that was rejected.

Current speculation involves multiple potential buyers as the company’s strategic position in augmented reality becomes more valuable. The renewed interest comes as Snap unveiled OS 2.0 and AR glasses updates that highlight its technology capabilities.

Meme Stock Dynamics Drive Retail Interest

Retail traders are positioning for what could become the next major meme stock rally. The combination of buyout speculation and retail enthusiasm has created conditions similar to previous GameStop and AMC surges.

Short interest data shows 8.50% of shares sold short, reaching the highest level since early 2020. This elevated short interest provides fuel for potential short-squeeze scenarios that retail traders often target.

One Stocktwits user noted the stock’s weekly gains and attributed them to circulating rumors. Another speculated that “a partnership is coming” as traders search for catalysts.

The meme stock potential gains support from extremely bullish sentiment readings and sustained message volume. Retail traders are closely monitoring technical breakout patterns and volume indicators for entry points.

TikTok ban discussions have added another layer of speculation to Snap’s rally. President Trump reportedly extended the TikTok ban deadline to December 16, creating uncertainty about the app’s future.

Multiple parties including Oracle, Silver Lake, Andreessen Horowitz, and News Corp are rumored as potential TikTok buyers. This situation has traders speculating about which social media companies might benefit from TikTok’s troubles.

Snap’s position as a younger-demographic focused platform makes it a potential beneficiary if TikTok faces restrictions. The company’s AR technology and camera-first approach differentiate it from other social media alternatives.

Despite the recent rally, Snap stock remains down over 24% for the year. The tech-focused QQQ ETF has gained over 17% in the same period, highlighting Snap’s underperformance.

The company faces challenges including weak ad revenue growth and increased competition. Wall Street analysts cut price targets following August quarterly results, citing weak direct response revenue and profitability concerns.

Trading volume of 210,355 shares indicates sustained interest from both retail and institutional investors. The stock hit a 52-week high of $13.28 earlier this year before declining to lows around $6.90.

Current pre-market trading at $8.72 shows continued strength as retail traders maintain their bullish stance. The combination of technical breakout patterns and fundamental speculation creates multiple catalysts for further gains.

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