Snap Stock soars on a surprise profit. It’s not Facebook.

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Snap said daily active users grew 20% year over year in the fourth quarter to 319 million.

The time of dreams


Break

Shares soared in premarket trading on Friday after Snapchat’s parent company reported a surprise fourth-quarter profit. The results indicated that fears about Snap’s activities in the wake of


Metaplatforms

‘ dismal report have been exaggerated.

Snap (ticker: SNAP) reported net income of $22.6 million, or 1 cent per share. Revenue grew 42% year over year to $1.3 billion. Analysts polled by FactSet had forecast a net loss of 9 cents a share and revenue of $1.2 billion.

The company said daily active users grew 20% year-over-year in the quarter to 319 million, ahead of Wall Street estimates of 316.9 million, according to FactSet.

For the first quarter, Snap forecasts revenue between $1.03 billion and $1.08 billion. Analysts had forecast first-quarter revenue of $1.01 billion, according to FactSet.

Instant shares soared 53.3% to $37.55 in premarket trading on Friday.

The stock had closed down 24% on Thursday after investors panicked over the weak outlook for


Facebook

Meta Platforms (FB) parent of . Meta’s fourth quarter report and outlook widely criticized social media stocks as they signaled near-term weakness in the digital advertising market.

“2021 has been an exciting year for Snap and we have made significant progress growing our business and serving our global community,” Snap CEO Evan Spiegel said in the earnings release. “The strength of our core business has allowed us to accelerate our investments in augmented reality, transforming the way the Snapchat community experiences the world through our camera.”

Through Thursday’s close, Snap stock was down 58% in the past 12 months. Shares fell in October as investors became aware of the challenges the social media company has faced since


Apple

made key changes to iOS last year. Apps on Apple devices must now ask users to enable ad tracking, a privacy practice that has made it difficult for apps like Snap to offer personalized ads.

Write to Connor Smith at [email protected]

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