Snapchat stock soars 25% after ending losing streak

07 February, 2018, 01:59 | Author: Lynette Payne
  • Snapchat overhaul convinces investors it can fight Instagram

Snap Inc.'s revenue topped analysts' estimates for the first time since the company went public nearly a year ago, buoyed by momentum in its advertising business and user growth.

Users - the thing most investors care about - were also way up for Snapchat, with the company adding 9 million daily users to hit 187 million.

Shares traded at $17.73 after the bell, up 26 percent after trading even higher earlier. Wall Street expected Snap to add about 6 million daily users during the quarter. Barclays raised shares of Snap from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $11.00 to $18.00 in a research report on Tuesday, December 5th.

Snap's upbeat earnings release was in stark contract to previous quarters, which saw the company struggling with slowing user growth and lower-than-expected revenue numbers. That means Snap is trading right around the price that it sold for during its IPO of $17.

Snap reported fourth-quarter results on Tuesday and said that its share-based pay jumped 27-fold from a year earlier to $181 million, with 72 percent tied to research and development.

Assam Summit is a boost to northeast, says, Jitendra Singh
Power schemes worth more than INR 10,000 crore have been initiated in the northeast. Elections are due in three northeastern states in February.

For the full year, Snap's revenue rose to $825m, more than double the $404m it made last year. Earnings per share were -$0.13, beating estimates by three cents.

Snap (SNAP +1%) reports earnings after the close with an eye on the company's recent redesign, and whether it can show it's making up ground against Instagram. That could help Snapchat compete for more of a mainstream audience. Bank of New York Mellon Corp now owns 36,643 shares of the company's stock worth $651,000 after buying an additional 13,336 shares during the last quarter.

Still, Snap has a long way to go in its turnaround.

"We executed well on our 2017 plan to improve quality, performance, and automation, which removed friction from our advertising business and improved our application for the Snapchat community", he said. This is the first time Snap has beat market expectations since going public past year.



Kevin De Bruyne: 'Manchester City players feeling the strain'
City had dominated possession throughout most of the game, which they strolled through for large spells. City threw players forward in the dying minutes of the match, but were unable to find a victor .

But, the real test begins now, says Rahul Dravid
Over time the spotlight has grown on the tournament and teams have started to plan meticulously to win the title. As for the present, though, Dravid was pleased, especially because India went through the campaign undefeated.

Eight Turkish troops killed in deadliest day of Syria operation
Meanwhile, the Turkish command says some 900 Kurdish fighters have been "neutralized" so far, the state news agency Anadolu reports .

Furious over budget allocation to AP, TDP MP dresses like 'Narad Muni'
The Telugu Desam Party-BJP coalition is letting the party leaders' mind rambling in varied directions. However, the Shiv Sena has not officially confirmed the telephone call.

Palestinian shot dead by Israeli army during West Bank raid
The Peace Now settler watchdog blasted the proposal's adoption as a "cynical exploitation of abominable murder". Scores of Palestinians threw stones at the Israeli forces as they moved into Burqin, Reuters reported.

South Africa's President Jacob Zuma under mounting pressure to quit
This is reportedly an indication that Zuma refused to resign during Sunday's meeting, which ended at 10pm. "The ANC top six have held them at president Zuma's guesthouse".

Kane's 100 Premier League goals: The Opta breakdown
The spot-kick was Tottenham's second of the match after Kane was adjudged to have been fouled in the 83rd minute. If you recorded Liverpool v Spurs then we'd advise you fast forward to the 80th minute.

Sensex cracks over 839 points the day after Budget presentation
By 12:40, seconds after the Finance Minister uttered Long Term Capital Gains Tax in the Parliament, the enthusiasm was skittled. The upward revision to the fiscal deficit target to 3.3 percent from 3 percent for 2018-2019 also dampened sentiment.

Stock Showing Surging Activity: Valero Energy Corporation (NYSE:VLO)
This buyback authorization authorizes the oil and gas company to purchase shares of its stock through open market purchases. What do you think is the future for Valero Energy Corporation? The stock has fallen nearly 7 percent in the last 12 months.

Russian athletes have doping ban overturned by Lausanne-based court
Three Russian biathletes who have appealed against the International Olympic Committee ban will have their cases heard later. They would compete as "Olympic Athletes from Russia" - with no use of the Russian flag or national anthem permitted.