Snap stock shoots up 11% as user numbers surge
After a tumultuous public debut, the state of Snap is improving and Wall Street is responding.
The social media messaging company is up nearly 12% after-hours following a beat on Q2 earnings, announcing 388 million in revenue versus the Zack’s Consensus Estimate of $358.5 million, and a loss of $0.06 EPS versus an expected $0.10 loss. The financial were better than expected, but the real surprise was the healthy user growth.
Snap said they had hit 203 million daily active users (up 8% year-over-year), while that had only been expected to reach 191.7 million. The company announced they had 190 million DAUs last quarter and despite the year-over-year decrease, the stock had a strong rebound as investor expressed a renewed faith in the company’s ability to bring new users onto the platform.
The company’s share price has nearly tripled since 2019’s start, though it still has a long way before it reaches its 2017 debut price.