Snap Gains Over 25% - What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
Snap Inc. (NYSE:SNAP) shares surged over 25% in premarket trading following the announcement of its first-quarter financial results, which exceeded analyst expectations. The company reported earnings of 3 cents per share against an expected loss of 5 cents per share, with adjusted EBITDA of $46 million, up from $1 million the previous year. Quarterly sales reached $1.195 billion, surpassing estimates by 6.74% and marking a 20.88% increase year-over-year. Snap also reported a 10% increase in daily active users to 422 million and introduced new tools and features. The company anticipates Q2 revenues between $1.225 billion and $1.255 billion, expecting daily active users to grow to approximately 431 million. Investors can also gain exposure to SNAP through the Global X Social Media ETF (NASDAQ:SOCL) and Fidelity Disruptive Communications ETF (NASDAQ:FDCF).
April 26, 2024 | 11:29 am
News sentiment analysis
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POSITIVE IMPACT
Fidelity Disruptive Communications ETF (FDCF) may see a positive impact due to its exposure to SNAP, following Snap Inc.'s strong Q1 earnings report.
FDCF, holding SNAP in its portfolio, is likely to benefit in the short term from the positive sentiment surrounding SNAP's earnings beat and subsequent stock price rally.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Snap Inc. reported strong Q1 results, surpassing analyst expectations with earnings and sales growth, and a significant increase in daily active users.
The positive earnings report and the significant year-over-year growth in sales and daily active users are likely to boost investor confidence in SNAP, leading to a short-term positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Global X Social Media ETF (SOCL) includes SNAP in its holdings, potentially benefiting from Snap Inc.'s positive earnings report and stock price surge.
Given SNAP's positive performance and its inclusion in SOCL's holdings, the ETF may experience a positive short-term impact as investors react to SNAP's earnings beat and stock price increase.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70