Snap stock soared after its 4Q17 results
Social media company Snap Inc. (SNAP) saw its stock soar by 45.0% on February 7, 2018, after it posted surprisingly good results on February 6 after trading closed. The company’s 4Q17 results represented its first positive financial report since going public in March 2017.
Snap’s revenues surged more than 72.0% YoY in 4Q17 on the back of much-needed user base growth and growth in its ARPU (average revenue per user). The company removed some of the Snapchat bugs on its Android (GOOG) app, which led to an increase in Android users.
Snap stock still 17% below its all-time highs
Snap’s (SNAP) stock price was languishing much lower than its IPO price of $17.00 for most of 2017 after its stock shot up on the first day of trading. This trend was due to subdued user base growth and an inability to monetize its user base sufficiently. However, the latest reports showed that the company could improve on both fronts.
Snap stock is trading above $20.00 per share, which is still 17.0% lower than its closing price on the first day of trading on March 2, 2017.