Snap and Pinterest Soar as Facebook Flags - Nasdaq Set to Rise Friday
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Snapchat, SNAP, Pinterest, Nasdaq, Tech Stocks - Talking Points
- Snapchat ($SNAP) surges more than 50% higher on first quarterly profit
- Snap says company overcoming Apple’s IOS changes, sees bright outlook
- Pinterest shares join rally, which may help push Nasdaq higher Friday
Snap, Inc. reported its first quarterly profit, catapulting share prices more than 50% higher in after-hours trading. This comes amid a rosy report from Amazon, encouraging investors to move into tech shares after the Nasdaq dropped on poor results from Meta, formerly known as Facebook. Snap hit 319 million daily active users, pushing revenues up to $1.3 billion. Analysts expected Q4 revenues of 1.20 billion, per Bloomberg data.
The social media tech company saw free cash flow rise from negative $69 million in the prior year to $161 million in the fourth quarter. First-quarter revenues are projected to hit $1.03 billion to $1.08 billion, per company guidance. Earnings per share (EPS) rose to $0.22, more than double the street estimate of $0.10, on an adjusted basis.
Apple’s recent IOS changes caused significant disruptions for technology companies recently, cited by Facebook earlier this week. Facebook's stock price closed over 26% lower today for reference. However, Snap reported that it made significant progress against those challenges. Pinterest, another prominent social media company, rose more than 25% after hours. The company beat on revenue and earnings per share, at $847 million vs $832.4 million, and EPS of $0.49 vs $0.42.
Snap, Inc. ($SNAP) - 3-Minute Chart/Daily Chart
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--- Written by Thomas Westwater, Analyst for DailyFX.com
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