Snap Stock Soars On Quarterly Earnings Beat| Investor’s Business Daily

Snap (SNAP)reported fourth-quarter results late Thursday that beat analyst estimates, as did its outlook. Snap stock soared in reaction, after plunging in regular-hours trading..

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The company reported an adjusted earnings of 22 cents a share on revenue of $1.3 billion. Analysts expected Snap to report earnings of 10 cents on revenue of $1.2 billion.

For the first quarter, Snap expects revenue in the range of $1.03 billion and $1.08 billion. That’s above analyst estimates for $1.02 billion.

Snap stock jumped 41% to 34.50 during after-hours trading on the stock market today. During regular-hours trading, Snap stock plunged 24%. The drop came after Facebook-owner Meta Platforms (FB) reported fourth-quarter results that missed estimates across the board.

Snap is the owner of Snapchat, a multimedia smartphone app people use for sharing images, videos and news. It also works as a game platform.

Snap Stock: Social Media Stocks Under Pressure

Social media stocks, which derive almost all their revenue from advertising, have been under pressure ever since Apple (AAPL) made changes in late April to its smartphone operating system. Apple initiated privacy controls that made it harder to track consumer behavior and disrupted targeted advertising.

Also hurting ad spending for Snap stock and others is supply-chain disruptions. Online retailers that could not meet holiday season demand due to product shortages were advertising less.

More to follow.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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