Snap Inc. (NASDAQ: SNAP) announced earnings recently. They were better than expected. The stock rose a breathtaking 28% to $14.55. However, over the past five years, they are down 49%. The S&P 500 is up 23% in the same period. Shares of much larger rival Meta Platforms Inc. (NASDAQ: META) are up 121%. Just a few months ago, worry about Snap’s prospects cratered its shares.
Snap has a problem in the social media world: It is too small to matter. Some people disagree. They believe that, although small, Snap has discovered ways to attract more advertising dollars, which are at the heart of its revenue. “Years of diligent work are beginning to pay off for Snap’s ad business,” said Max Willens, senior analyst at Emarketer, to Yahoo! Finance.
Snap’s revenue rose 21% in the most recent quarter to $1.2 billion. However, it lost $333 million, up 9% from the same period the year before. Evan Spiegel, CEO, described the cause for the improvement. “The value we provide our community and advertising partners has translated into improved financial performance.” Snap did have one very good piece of news. Daily active users (DAU) rose 10% to 422 million.
Meta, Facebook’s owner, released disappointing earnings days before Snap did. However, they showed how small Snap is and that its growth rate is not impressive. Meta revenue rose 27% to $36.5 billion. Net income rose 117% to $12.4 billion. Family daily active people (DAP) rose 7.7% to an average of 3.24 billion in March.
Snap is not a social media player of any consequence. So, its comeback doesn’t matter either.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.