money Snap soars on surprise earnings beat
Yahoo Finance’s Dan Howley joins Akiko Fujita to discuss the stock soaring after Snap smashes profit and user-growth forecasts
Video Transcript
AKIKO FUJITA: Shares of Snap hitting a new high in this section. That stock is up well over 30% on the back of a blockbuster earnings report. Snap's ad revenue grew twice as fast as expected. We're talking about 52% growth year on year.
Dan Howley is here to break down the numbers for us. And Dan, what's been interesting to see on the reaction of this earnings report is how that has lifted some other names like Pinterest and Twitter in the session.
DAN HOWLEY: Yeah, it's interesting just because this kind of comes around the same time that the earnings in kind of the quarter around the same time that we saw that Stop Hate for Profit campaign going on, on Facebook where we saw, you know, about 1,000 or so advertisers pull their advertising campaigns from Facebook in support of that campaign to get Facebook to clean up the content on its platform.
Some have said that they wouldn't advertise on Facebook through the end of 2020. It also, by the way, just so happens that a lot of companies were cutting their advertising budgets because of issues with COVID-19. So it could be that they genuinely felt that way, or it could be that it was a good way for them to spin it.
Either way, Pintere-- sorry, Snap-- saw this increase. They also saw an increasing amount of users for the quarter. That was up 19% year over year to 249 million daily active users. That was from 210 daily active users, so quite a substantial job.
But obviously, you know, some of the filters on there got a lot of attention. They had an anime filter that people were really into. But I think it kind of speaks to people moving around on different platforms and trying to come up with ways to entertain themselves when, you know, you can't go out. You can't do certain things.
You know, we did start to see some reopenings, but now we're starting to see some pullback in reopenings. So I think we're going to continue to see this kind of cycle where a lot of these social media companies do well or these alternate entertainment, I guess, avenues do well, as people start to shut down again. And then, you know, we'll kind of see it boomerang as we see reopenings come back, hopefully, in short order.
