Snap is giving back a chunk of its earnings gains

source
Markets Insider

  • Snap is giving back some of Thursday’s huge gains, falling as much as 8%.
  • The stock surged nearly 50% after a better than expected earnings report revived hopes its user growth and monetization can lead to sustainable revenue.
  • See Snap’s stock move in real time here

Snap is getting hit hard Thursday, down 7% at $19.30 a share.

Thursday’s big drop comes after shares soared nearly 50% on Wednesday following company’s blockbuster fourth-quarter results. Snap reported a 72% spike in revenue versus a year ago and said it now has 187 million Daily Active Users, up 5% from the previous quarter.

The solid results have caused investors to revisit their belief that Snap’s poor monetization would hinder its ability to grow revenue.

“While monetization growth has been slower than we previously expected, we continue to believe its audience and engagement represent a unique asset,” Goldman Sachs analyst Heath Terry said in a recent note.

Snap shares are up 31.5% this year.