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Snap Investors Very Happy This Morning As of this writing, Snapchat’s parent company is up 23% in early morning trading The stock jumped from $ 661 to $ 35.02 before the bell It’s an all-time high The stock surge is due to Snap’s third quarter earnings results, which the company released after the bell last night
In a time when TikTok seems to have dethroned even Facebook as the hottest social media platform, what is Snapchat doing that spurred this surge in shares? Basically, in the third quarter, Snap exceeded analysts’ expectations on virtually every major metric, including:
So why did Snap perform so well in Q3? The company attributes a strengthening of its advertising platform, which resulted in an increase in revenue.But in terms of what drove this growth of users, which underscored such ad revenue, the company specifically highlighted the popularity of its Lens Studio, which allows creators to craft augmented reality lenses for users to use in Snaps In fact, their « Anime Style » goal was engaged 3 billion times in its first week alone
The company also did a Facebook dig when its chief commercial officer Jeremi Gorman said, “As brands and other organizations used this period of uncertainty to gauge their ad spend, we saw a lot of brands search. align their marketing efforts with platforms that share their corporate values »This statement likely refers to the advertising boycott of Facebook over the summer due to the company’s insufficient hate speech policies
Other factors for the stellar quarter include a 50% increase in the number of Snapchatters in India viewing Discover content, as well as the popularity of that Discover content, including a show exploring racial issues with Jaden Smith and a documentary series starring Conor McGregor
Yet despite its explosive quarter, Snap decided not to release the fourth quarter forecast.However, such a move has been common this year with many companies due to the economic uncertainty surrounding the COVID-19 pandemic. Either way, as of this morning, many investors seeing this over 20% increase in Snap share value probably aren’t too concerned about the company’s fourth quarter.
Michael Grothaus is a novelist, journalist and former screenwriter His first novel EPIPHANY JONES has now been released from Orenda Books
You can find out more about him at MichaelGrothauscom
Snap Inc, Stock, Profits, Snapchat
World News – UA – Here’s Why Snap Stock Is Soaring This Morning
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