Snapchat Stock Soars on Revenue, User Gains

Share
Snapchat Stock Soars on Revenue, User Gains

Snapchat now has 187 million daily active users, which is higher than 184.2 million expected from analysts.

The Evan Spiegel-led company surprised industry analysts on Tuesday, Feb. 6, when it reported total revenue of $286 million in its fourth quarter of 2017, a 72-percent increase from a year earlier, due to strong user and advertising growth. The company had revenue of $207.90 million during the quarter, compared to the consensus estimate of $236.71 million. Accern also assigned media headlines about the company an impact score of 44.631811453802 out of 100, meaning that recent press coverage is somewhat unlikely to have an effect on the company's share price in the near term.

Investors were quick to reward Snap Inc. generously on Wednesday, February 7th, as the technology and social media company's shares jumped to 39 percent after its unexpected positive earnings report.

Confidence that the two could co-exist in the social media sector was shaken when Snapchat's user growth stalled previous year. The shares were sold at an average price of $12.42, for a total value of $20,529,837.72. Further, the company is not profitable and its advertising business has not yet matured.

During Snap's third-quarter earnings call, Spiegel acknowledged that Snapchat is harder to understand than he initially realized.

Vollero said more than 90% of ads were sold on Snapchat's auction, which is capable of handling larger volumes than a human sales staff, and the company tripled the number of advertisers buying there. The company had a trading volume of 166,232,094 shares, compared to its average volume of 22,712,875. Credit Suisse Group reaffirmed an "outperform" rating and set a $20.00 target price (up previously from $17.00) on shares of Snap in a report on Wednesday, October 11th.

In addition to fixing bugs, the company is redesigning Snapchat to make it easier to use.

Facebook-owned Instagram has threatened Snapchat by copying all of its features and implementing it into its own app. Instagram has twice the amount of daily active users and revenue that Snapchat has. The new version has already launched to 40 million users and will release worldwide in the first quarter, the company said in the call.

Excluding items, Snap reported a loss of 13 cents. Zacks Investment Research lowered shares of Snap from a "hold" rating to a "sell" rating in a research note on Wednesday, January 10th.

Revenue per user rose 46% from a year earlier to $1.53, while cost of revenue per user rose 5% to $1.02. The net loss was $350 million in the fourth quarter, for a full-year loss of $3.45 billion.

Share

Advertisement

Related Posts

Kim Jong Un's Sister, Kim Yo Jong, Is Coming To Pyeongchang Olympics
Abe added that the allies would urge other countries not to be "captivated by the charm offensive of North Korea". Since it docked, North Korea has asked the South to provide oil for refuelling.

MI Takes $202000 Position in Suncor Energy Inc. (SU)
Shares of Suncor Energy Inc. (TSE:SU) earned "Outperform" rating by RBC Capital Markets on Friday, February 10. The stock has a market capitalization of $70,460.00, a price-to-earnings ratio of 19.81 and a beta of 0.40.

The Winter Olympics 2018: Five things to watch for during the games
Athletes from North and South Korea will march under the Korean Unification flag during the Opening Ceremony . Twenty years ago, snowboarding debuted as a sport in the Winter Olympic Games in Nagano, Japan.

Escaped inmate captured, shot by carjacking victim in Webster County
He fled Saturday night from the George County Regional jail, which houses state inmates as well as local pre-trial detainees. Authorities said Robinson escaped and took the officer's 2000 GMC Sonoma pickup, with a Greene County license plate.

Tracking Shares of GX Copper Miners ETF (COPX) — Technical Focus
These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Presently, Vanguard Australian Shares High Yield Etf (VHY.AX) has a 14-day Commodity Channel Index (CCI) of -202.55.

The Financial Contrast: Guidewire Software (GWRE) & RealPage (RP)
BidaskClub lowered Guidewire Software from a "strong-buy" rating to a "buy" rating in a research note on Wednesday, October 18th. The firm owned 234,842 shares of the technology company's stock after selling 1,860 shares during the quarter. (NASDAQ:MARA).

Timothee Chalamet and Frank Ocean discuss creativity, works, NYC hotspots
In a piece for V Man , Chalamet speaks with Frank Ocean about CMBYN , acting and that time he rapped about statistics . The chap was interviewed by Ocean for VMan .

UAE imposes travel ban on Kerala leader's son
The Dubai Misdemeanours Court had fined Binoy AED30,000 for each of the two cheques - one for AED2 million and the other for AED1 million.

Erin Hamlin chosen as U.S. flag bearer for opening ceremony
According to a press release from USA Luge, Hamlin, a four-time Olympian, was chosen by a vote of her fellow Team USA members. Hamlin will be the first member of the US luge team to carry the flag since 2010, and the fourth ever, the statement said.

Evidence against Russians strong despite CAS blow: IOC
But last week, Cas overturned 28 athletes' suspensions and partially upheld 11 other appeals. Neither athlete has previously served a doping ban.

© 2015 ExpressNewsline. All Rights reserved.