Snap Reports Strong Q2 Earnings, Beating on All Key Metrics
Snap Inc (NYSE:SNAP) released its Q2 results, the company beat on earnings, revenues and daily active users as well. Here’s a snapshot of how Snap did:
Earlier in the day, Snap benefited from an analyst upgrade that resulted in the stock rallying 5% during the day and it even continued after hours as speculation grew that the company could have a good earnings result. After a troubling 2018 that saw Snap lose more than 60% of its value, the stock has been off to a much stronger start to 2019 as it has risen more than 150% since the start of the year.
Questions about the company’s competitive advantage have caused a lot of pressure on Snap as rivals have been able to copy some of its key features. However, with a strong user base, Snap continues to prove to be popular among young people and there’s still a lot of potential for the company to continue to grow.
Heading into earnings, Snap was trading at more than nine times its book value and 16 times its sales. Revenues for the trailing twelve months were $1.27 billion and $320 million in Q1. During the past 52 weeks, Snap’s share price fell as low as $4.82 back in December when markets as a whole were at a low. It recently reached a new 52-week high of $16.24 earlier this month.
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