Last night, Snap reported its quarterly earnings performance, and it did better than expected. Though the company is still unprofitable, and its daily active user count was still slightly down from the year before, Snap’s revenue exceeded expectations. In a digital world dominated by Google and Facebook, a well-performing alternative is certainly big news. Thus, the market reacted.
The stock jumped in after-hours trading by more than 20%. It’s expected to open today the highest it’s been since September.
Meanwhile, analysts are already reacting positively to its earnings report. Morgan Stanley and Goldman Sachs, for instance, already raised their price targets for the stock. Others, like Raymond James’s Aaron Kessler, upgraded the stock from perform to market perform. Others, notes Bloomberg, had positive things to say about the company’s performance.
Of course, it’s not unusual for stocks to jump after a surprise earnings report, so it’s anyone’s guess how long this will last.The real question is whether Snap can continue this momentum to get out of the slump it’s been in for the last year. Some daily active user growth would be good as well.