Snap Stock Rises Despite the Decline in Daily Users

Digital Marketing News

Snap Stock Rises Despite the Decline in Daily Users

Mouhammed Abood

A few hours ago, Snapchat reported its quarterly earnings, that showcased some strange results and numbers that weren’t expected. Snap Inc has reported in its quarterly earnings that there was a big decline in its active users, dropping from 191 million daily actives last quarter to 188 million today.

 

Snapchat Q2 2018 - Active Users [graphs]

Despite this decline, Snap stock rose as much as 11 percent in the extended session after reporting a smaller-than-expected loss of 14 cents per share for the second quarter, 3 cents less than the 17 cents loss per share expected by Wall Street.

Snapchat also succeeded in beating on revenue; it reported 44% year-on-year revenue increase, and a 48% YoY jump in ad revenue, which means that Snap’s hitting $262.3 million, compared to the $249.8 million Wall Street expectation.

Snap Q2 Earnings Slides - earnings results

 

This decline in Snapchat daily active users is considered to be the Snap first-ever decline, which records 188 million DAUs compared to the 193 million DAUs Analysts expectation. Despite this miss, the stock is currently rallying in after-hours trading. It’s currently up over 10.

 

Experts attributed the Snapchat stock rise to Prince Alwaleed of Saudi Arabia, who announced on his Twitter personal account that he invested $250 million to get a 2.5% stake in the company. this step from Alwaleed is considered to be part of his strategy to invest in innovative technology.

 

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