Investors are buying shares in Snap after the owner of the disappearing messaging platform Snapchat surprised Wall Street by reporting a quarterly profit for the first time. The stock jump came on Thursday after Meta, the parent of Facebook, saw its worst one-day share price decline in its history, showing that while internet and social media companies are sometimes grouped by Wall Street, their fortunes often diverge.
Snap shares rose by $14.30 (approximately Rs. 1,000), or 58%, to $38.89 (approximately Rs. 2,900) in after-hours trading. The stock, which tends to be volatile, lost nearly 24 percent in regular trading after the Meta’s drop.
“Snapchat is clearly not as prone to the ‘TikTok effect’ as Meta, with strong daily growth in active users in all regions, including North America,” said Jasmine Eenberg, analyst at Insider Intelligence. largely due to competition from TikTok, the popular video-sharing app.
Even so, added Eenberg, much of Snap’s growth likely came from India, where TikTok is banned.
Snap, based in Santa Monica, Calif., said on Thursday that its fourth-quarter earnings were $22.6 million (approximately 170 crore), or 1 cent (approximately 75 crore) per share, compared with a loss of US$ 69 million (approximately Rs. 500). crore), or 8 cents (approximately Rs. 6) per share, a year earlier. Analysts had expected it to report a loss of 9 cents (approximately Rs. 7) per share for the last quarter, according to FactSet.
Revenue grew by 42% to US$1.3 billion (approximately Rs. 9,716 crore). Snap’s average daily user count also continued to increase, 20% year-on-year, to 319 million in the fourth quarter.