Snap shares jump to record high
Investors rushed to snap up shares of Snap, driving them more than 30% higher Wednesday morning to an all-time high. That also lifted other social media stocks such as Facebook and Twitter.
At least 20 analysts on Wall Street, many of whom were surprised by Snap’s blowout quarter, raised their price targets on the stock of the owner of the popular messaging app, Snapchat.
Snap benefited from the pandemic as more people signed up to chat with friends and family. The metric that advertisers and investors closely watch, daily active users, rose 18% to 249 million, surpassing Wall Street’s expectations. And the average revenue per user shot up 28%.
Quarterly revenue jumped 52%, helping the company narrow its net loss. Snap benefited when advertisers boycotted rival Facebook in response to issues of hate speech on its platform. Snap marketed itself as a safe place for advertisers because it focuses on one-on-one messages that disappear once they’re read.
Snap forecast that its revenue in the current quarter could rise as much as 50%. But it warned that it’s unclear how the health crisis would impact year-end holiday advertising.
