Snap is going bananas after stopping the bleeding of its user base (SNAP)

Evan Spiegel Snap CEO Snapchat

  • Snap
    beat on both the top and bottom lines.
  • The company also said its daily active-user count
    stabilized in the period after two quarters of
    decline.
  • Snap shares under pressure over the past year as the
    company lost popularity following its redesign and had to deal with
    sustained pressure from Facebook and Instagram.
  • Watch Snap
    trade live.

Snap
was up 21.7% early Wednesday to $8.57 a share after saying its
biggest problem — a declining number of daily users — has
finally stabilized.

The social-media company on Tuesday evening
reported a better-than-feared loss
for the fourth quarter. It
said it lost $0.14 a share on revenue of $389.8 million, topping
the $0.19 loss and $377.5 million that was expected. 

Additionally, the company’s Snapchat app had 186 million daily
active users during the quarter, the same number as the previous
quarter. This was the first time in three quarters that Snap’s
daily user count hadn’t fallen.

Looking ahead, Snap sees first-quarter sales in the range of
$285 million and $310 million. Analysts were hoping for revenue of
$306.28 million.

Snap had tough time in 2018. On February 21, the social-media
celebrity Kylie Jenner blasted the Snapchat app’s redesign and
said her
days of using the app were over
. Shares have since fallen 50%
as the Snapchat app has lost popularity following its redesign
while also dealing with sustained pressure from Facebook and
Instagram. The combination of those difficulties have
contributed to the app’s declining user base
.

In August, Snap said in
its second-quarter earnings release
that it had suffered its
first ever decline in sequential daily active users. That trend continued
in its third quarter, when the company said its number of daily
active users fell by 1%.

Snap was up 47% so far this year.

Snap


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Snap is going bananas after stopping the bleeding of its user base (SNAP)