Snap Inc. (NYSE: SNAP) is the parent company of social media platform Snapchat, and its stock is trading 82% below its all-time high, which was set in 2021. A couple of things happened. Valuations in the technology sector cooled off when the Nasdaq-100 plunged 33% in 2022, and soaring interest rates triggered a slowdown in the advertising industry.

However, Snap stock soared almost 28% last Friday following the release of an overwhelmingly positive set of results for the first quarter of 2024, which suggested the tide might finally be turning. Here's why it might be time to buy Snap stock on the dip.

Every social media platform that relies on digital advertising to generate revenue suffered in 2022, including Snap's main rival, Meta Platforms, which owns Facebook and Instagram. However, the social media industry was also grappling with changes to Apple's privacy policy in 2021, which made it harder for them to track their users across the internet. It meant they couldn't target audiences with as much precision on behalf of their advertisers.

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Source Fool.com