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Snap Stock Gets a Boost From Revenue Growth, Buyback Plan

#Snap #Stock #Boost #Revenue #Growth #Buyback #Plan

Key takeaways

  • Snap beats earnings and sales estimates as users embrace its artificial intelligence and augmented reality technology.
  • Average daily active users, average revenue per user, and ad revenue all exceeded expectations.
  • Snap announced a $500 million stock buyback.

Snap (SNAP) shares jumped on Wednesday after the social media company reported better-than-expected results and announced a stock buyback.

The owner of photo and video sharing app Snapchat reported third-quarter non-GAAP earnings per share of $0.08, with revenue rising more than 15% to $1.37 billion. Both exceeded estimates. (On a GAAP basis, the company reported a loss.) The stock was recently up about 13%.

The average number of daily active users rose by 1 million from a year ago to 11 million, while average revenue per user rose by $0.24 to $3.10. Advertising revenues rose 9.3% to $1.25 billion. All of these numbers were also more than expected.

CEO Evan Spiegel said Snap’s investments in AI and AR “are fueling new creative experiences for our community and driving innovation across our advertising platform, supporting our long-term growth opportunities.”

The company said the board of directors approved a share buyback plan worth up to $500 million that is scheduled to last for 12 months.

Despite today’s gains, Snap shares have lost nearly a quarter of their value this year.

Among other social stocks, Reddit (RDDT) also reported its results last night, while Meta Platforms (META) numbers are due after today’s closing ball.

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#Snap #Stock #Boost #Revenue #Growth #Buyback #Plan

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