Why Are Snap (SNAP) Shares Soaring Today
What Happened:
Shares of social network Snapchat (NYSE: SNAP)
jumped 7.1% in the afternoon session after Meta (NASDAQ:) reported fourth-quarter results with revenue, operating income, and EPS, all exceeding analysts’ estimates. These beats were driven by better-than-expected daily active users along with a 21% year-on-year increase in ad impressions. Meta also saw a 2% tailwind in advertising pricing. Commentary across the sector also suggests the advertising market is likely to rebound in 2024.
Is now the time to buy Snap? Find out by reading the original article on StockStory.
What is the market telling us:
Snap’s shares are very volatile and over the last year have had 26 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago, when the stock dropped 19.8% on the news that the company reported first-quarter revenue that missed analysts’ revenue expectations, with both daily active users and revenue per user below expectations. EBITDA also missed. This marked the fifth straight quarter of topline revenue miss. SNAP’s business is likely experiencing company-specific issues, as advertising and social media peers broadly reported fine to good results.
Snap is up 4.6% since the beginning of the year, and at $16.88 per share it is trading close to its 52-week high of $17.37 from January 2024. Investors who bought $1,000 worth of Snap’s shares 5 years ago would now be looking at an investment worth $2,437.
This story originally appeared on Investing
