Snap: shares jump as user numbers beat estimates
(CercleFinance.com) - Snap Inc.
shares have jumped as much as 25% on Wednesday, as the so-called "camera company" easily beat Wall Street's estimates.
The owner of the Snapchat app said that it ended the year stabilizing the number of its daily active users (DAUs) with 186 million users in the fourth quarter, the same as in the third quarter.
Snap said revenue increased 36% to a record 390 million dollars over the past quarter, above the consensus of 370 million dollars, while its adjusted EBITDA loss improved to -50 million dollars, while the consensus express expected -90 million dollars.
In a note to clients, Jefferies cheered the Santa Monica firm's "comeback" and raised its target price for the stock from 7 dollars to 9 dollars, while maintaining a "hold" rating on the shares.
Credit Suisse says the same thing. The broker welcomes the group's numbers "stabilization" and maintains its "outperform" rating, having increased its target price from 9.5 dollars to 10.5 dollars, saying that the upcoming Android app release should help rekindle user growth.
The NYSE-listed Snap shares are currently soaring 24.5% at 8.8 dollars on Wednesday morning.
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