Shares of Snap Inc.
Stocks jumped on Thursday after Facebook parent Meta reported the worst one-day stock price drop in its history, indicating that Internet and social media companies are sometimes lumped together by Wall Street, but their fortunes often falls apart.
Shares of Snap Inc. rose $14.30, or 58%, to $38.89 in after-hours trading. The stock, which tends to be volatile, lost nearly 24% in the regular trading session following the fall of Meta.
Snapchat is clearly not as prone to the TikTok impact as Meta, with strong daily active user growth across regions, including North America,” said Insider Intelligence analyst Jasmine Anberg. She noted the decline in user growth on Facebook, Which is in large part due to competition from the popular video sharing app, TikTok.
Still, Anenberg said, much of Snap’s growth likely came from India, where TikTok has been banned.
Snap, which is based in Santa Monica, Calif., said Thursday its fourth-quarter profit was $22.6 million, or 1 percent per share, compared to a loss of $69 million, or 8 cents per share, a year ago. According to FactSet, analysts were expecting a loss of 9 cents per share in the latest quarter.
Revenue rose 42% to $1.3 billion. Snap’s average daily user count also rose 20% year-over-year to 319 million in the fourth quarter.
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