What Impacted Snap Stock Last Week?
Snap shares fell 17.5% last week
Shares of social media company Snap (SNAP) fell 17.5% in the week ended May 12, 2017. Snap released its first quarterly results as a publicly traded company last week, reporting revenue of $149.6 million, a rise of 286% YoY (year-over-year) compared to $38.8 million in 1Q16.
On average, analysts had expected Snap to post EPS (earnings per share) of -$0.20 on revenue of $157.4 million.
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Snap’s number of daily active users (or DAU) rose 36% in 1Q17 to 166 million, compared to 122 million in 1Q16. Its DAU also rose 5% quarter-over-quarter compared to $158 million in 4Q16.
Snap’s average revenue per user (or ARPU) rose 181% YoY to $0.9 in 1Q17, compared to $0.32 in 1Q16. It fell 14% quarter-over-quarter compared to $1.05 in 4Q16. Snap’s capital expenditure also rose to $18 million in 1Q17, compared to $12.5 million in 1Q16.
Shares of Snap have been volatile since it was listed on the NYSE on March 2, 2017, and rose 44% on the day. Shares of the company rose 10.7% on its second trading day and closed at $27.09.
Market cap of $25.8 billion
Snap’s market capitalization is currently $25 billion, primarily due to its large user base. However, for Snap to be successful, it will need to engage users for long periods of time, as is done by peer companies Facebook (FB) and Twitter (TWTR).