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Snapchat didn’t lose as much money as people expected in Q3 and so its stock is up

Snapchat didn’t lose as much money as people expected in Q3 and so its stock is up
[Photo: Thought Catalog/Unsplash]

Shares of Snap Inc. jumped in after-hours trading today after the company posted a per-share loss of 12¢, compared to a consensus estimate of 14¢. In other words, Snapchat’s parent company did not lose as much money as expected in the period ended September 30, and so investors are temporarily happy. It’s hard to say if the good times will last.

Quarterly revenue, at a record $298 million, was another bright spot for the company. Analysts were expecting $283 million, according to a Thomson Reuters consensus cited by CNN.

However, Snap’s user base is not faring so well. It reported a 1% decline of daily active users to 186 million. That’s about in line with some estimates but lower than others, and it indicates that Snap’s growth is most definitely flatlining.

Three months ago, the company reported its first-ever decline in users, and the stock price has essentially halved since then—it was trading at $6.99 when the markets closed today. All of which is to say it’s been a bumpy ride for the social network, which has struggled to find its footing amid competition from Instagram, hardware launches that failed to impress, and a user revolt over its much-maliagned redesign.

Despite all that, the company has reason to be optimistic this afternoon.

Check out the full report here.

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