Is Snap Inc (SNAP) Halal?

NYSE Communication Services United States $6.6B
✗ NOT HALAL
Confidence: 90/100
Snap Inc (SNAP) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 47.5% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Snap Inc operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 47.5%
/ 30%
33.7%
/ 30%
15.7%
/ 30%
2.26%
/ 5%
✗ NOT HALAL
DJIM 47.5%
/ 33%
33.7%
/ 33%
15.7%
/ 33%
2.26%
/ 5%
✗ NOT HALAL
MSCI 54.0%
/ 33%
38.3%
/ 33%
17.9%
/ 33%
2.26%
/ 5%
✗ NOT HALAL
S&P 47.5%
/ 33%
33.7%
/ 33%
15.7%
/ 33%
2.26%
/ 5%
✗ NOT HALAL
FTSE 54.0%
/ 33%
38.3%
/ 33%
17.9%
/ 50%
2.26%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.27
P/B Ratio
2.9
EV/EBITDA
-21.3
EV: $7.8B
Revenue
$5.9B
Growth: 10.2%
Beta
0.9
Average volatility
Current Ratio
3.6

Profitability

Gross Margin 55.0%
Operating Margin 2.9%
Net Margin -7.8%
Return on Equity (ROE) -19.5%
Return on Assets (ROA) -4.3%

Cash Flow & Balance Sheet

Operating Cash Flow$656M
Free Cash Flow$437M
Total Debt$4.1B
Debt-to-Equity181.6
Current Ratio3.6
Total Assets$7.7B

Price & Trading

Last Close$4.01
50-Day MA$5.52
200-Day MA$7.48
Avg Volume47.5M
Beta0.9
52-Week Range
$3.81
$10.41

About Snap Inc (SNAP)

CEO
Mr. Evan T. Spiegel
Employees
5,261
Sector
Communication Services
Industry
Internet Content & Information
Country
United States
Exchange
NYSE
Market Cap
$6.6B
Currency
USD

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

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Frequently Asked Questions

Is Snap Inc (SNAP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Snap Inc is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Snap Inc's debt ratio?

Snap Inc's debt ratio is 47.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 54.0%.

What are Snap Inc's key financial metrics?

Snap Inc has a market capitalization of $6.6B, and revenue of $5.9B. The company maintains a gross margin of 55.0% and a net margin of -7.8%. Return on equity stands at -19.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.