Snap stock shoots up 11% as user numbers surge

After a tumultuous public debut, the state of Snap is improving and Wall Street is responding.

The social media messaging company is up nearly 12% after-hours following a beat on Q2 earnings, announcing 388 million in revenue versus the Zack’s Consensus Estimate of $358.5 million, and a loss of $0.06 EPS versus an expected $0.10 loss. The financial were better than expected, but the real surprise was the healthy user growth.

Snap said they had hit 203 million daily active users (up 8% year-over-year), while that had only been expected to reach 191.7 million. The company announced they had 190 million DAUs last quarter and despite the year-over-year decrease, the stock had a strong rebound as investor expressed a renewed faith in the company’s ability to bring new users onto the platform.

“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” CEO Evan Spiegel said in a statement. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”

The company’s share price has nearly tripled since 2019’s start, though it still has a long way before it reaches its 2017 debut price.

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