Snap Posts 1st Quarterly Profit, Much of Growth Likely Came From India

Investors are snapping up shares of Snap after the proprietor of the disappearing message platform Snapchat stunned Wall Street by posting a quarterly revenue for the primary time. The inventory soar got here Thursday after Facebook mother or father Meta noticed its worst one-day inventory worth decline in its historical past, exhibiting that whereas web and social media corporations are typically lumped collectively by Wall Street, their fortunes usually diverge.

Shares of Snap have been up $14.30 (roughly Rs. 1,000), or 58 %, to $38.89 (roughly Rs. 2,900) in after-hours buying and selling. The inventory, which tends to be unstable, misplaced practically 24 % within the common buying and selling session following Meta’s plunge.

“Snapchat is clearly not as vulnerable to the ‘TikTok impact’ as Meta, with sturdy every day lively consumer development in all areas, together with North America,” mentioned Insider Intelligence analyst Jasmine Enberg. She referred to the decline in consumer development at Facebook that’s largely on account of competitors from TikTok, the favored video sharing app.

Even so, Enberg added, a lot of Snap’s development doubtless got here from India, the place TikTok is banned.

Snap, which relies in Santa Monica, California, mentioned Thursday its fourth-quarter revenue was $22.6 million (roughly 170 crore), or 1 cent (roughly 75 paise) per share, in comparison with a lack of $69 million (roughly Rs. 500 crore), or 8 cents (roughly Rs. 6) per share, a yr earlier. Analysts had been anticipating it to report a lack of 9 cents (roughly Rs. 7) a share within the newest quarter, in keeping with FactSet.

Revenue grew 42 % to $1.3 billion (roughly Rs. 9,716 crore). Snap’s common every day consumer rely additionally continued to extend, up 20 % year-over-year to 319 million within the fourth quarter.