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Why Snap Stock Surged

Sanmit Amin - Author

Aug. 18 2020, Updated 5:14 a.m. ET

Snap has handily beaten revenue and earnings estimates

Social media company Snap (SNAP) reported its fiscal 4Q17 earnings on Tuesday, February 6. The company surprised the markets with a stellar performance, which gave investors hope after three consecutive quarters of slowing revenue growth.

In fiscal 4Q17, the company recorded revenue of $285.7 million, surging 72.4% from the same quarter last year. The company posted a net loss of $350 million in the quarter, compared to the loss of $169.9 million in fiscal 4Q16. While losses expanded year-over-year, they shrank ~20% on a sequential basis. Analysts were expecting a loss of $409 million in fiscal 4Q17.

Snapchat’s daily active users saw decent growth in fiscal 4Q17

SNAP surged 26% in after-hours trading on Tuesday, finally taking its shares price over the $17 mark, which is above the IPO price. However, it’s sill nearly 45% below the highs it hit in March 2017, right after it went public.

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