Snapchat records first quarterly profit ever and stocks rally up by 60%
Snapchat records its first ever quarterly profit ever. The revenue post enthused investors to give a boost to Snapchat stocks by 60%.
Snapchat records first quarterly profit in December marking the end of three months. Snapchat was recording loss for the year 2021. It lost $488 million on $4.1 billion in revenue. Right after revenue report, investors showed a positive sentiments and the stocks of Snapchat jumped upwards by 60%.
In the fourth quarter, Snapchat marks an outstanding revenue of $1.3 billion. While, Wall Street’s estimated forecast was at $1.2 billion.
Background of Snapchat’s revenue and stocks
Currently, Snapchat has 319 million daily users. The numbers are 20% more than last year.
Meta, earlier known as Facebook, slumps in chart this quarter. Meta’s slumping inspired concerns for Snapchat. Snapchat was expecting trouble. Moreover, Snapchat stocks were suffering since its report of troubles around ad business.
Its digital advertising business is facing problems because of Apple. Apple is making some changes in its software. Thus, Snapchat is facing difficulty in targeting advertisements at customers. As a result, its value is not up to the mark.
Although despite problems with its ad business, Snapchat’s revenue could manage to perform better than expectations.
What happens to the stock of Snapchat after revenue post?
Right after Snapchat records first quarterly profit ever, stocks rally of Snapchat rally up by a significant 60%. In after hour trading, traders greet the change positively. Although, it had lost 20% after Meta’s disappointing performance results.
