Shares in Snapchat parent company soar after topping revenue, user growth estimates

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Snap now expects second-quarter revenue between $1.23-billion and $1.26-billion, above analysts’ estimates of $1.22-billion, according to LSEG data

jumped nearly 25 per cent in on Friday after targeted ads and new features helped the owner of the photo messaging app beat Wall Street expectations for first-quarter revenue and user growth.

Snap said its business was improving faster than expected due to upgrades of its ad system and higher demand for features that help brands drive sales or website clicks. “Revenue per user increased year over year for the first time since early 2022, reflecting the strength in the broader advertising market and Snap’s efforts to revive growth,” Morningstar analyst Michael Hodel said.

While 18 Wall Street brokerages raised their price targets on Snap’s shares following results, most analysts said they were looking for more consistent evidence that company’s business has improved.

 

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