Snap Delivers Strong Q4 Results Despite Apple’s Privacy Measure Changes
Snap’s stock rose by more than 53% Friday morning after beating analysts’ estimates and reporting its first net profit for the quarter.
The company generated a revenue of $1.3 billion, which was higher than the $1.2 billion analysts had expected. The growth in revenue came along with an increase in the company’s global daily active users, which went up from 306 million in Q3 to 319 million. The company reported an average revenue of $4.06 per user, which was higher than $3.79 analysts had expected.
Snap’s better-than-expected results helped the company quickly recover from the 23.6% loss in its stock value on Thursday. The decline came as a result of mass social media stock selloff that was triggered when Snap’s top competitor, Facebook, announced on Wednesday that it was expecting its revenue to shrink by as much as $10 billion due to Apple’s privacy changes — a change that made it harder for advertisers on its platform to accurately target consumers.
“At this point, we chalk it up to Facebook’s SMB-heavy platform vs. peers, though SNAP management seemed to suggest SMBs should be able to navigate these waters just as well,” analysts from investment and brokerage firm Stifel noted.
That being said, Snap still has a long path to regain losses it has incurred over the last five months. The company’s stock value of $36.63 as of press time is well below its $83.11 peak it reached on September 24, 2021, according to CNBC.
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