Snap earnings surprise.
Snap earnings surprise to the upside. The company is up over 20% premarket as revenue was $286 million. This was about $30 million more than analysts expected. Snap did lose $350 million, which was 13 cents per share. Analysts were expecting a 16 cents loss. The most important number was Snap’s daily active users. They reported 187 million people visited their platform, which more than 2 million predicted by analysts.
Does the earnings report make it possible for investors to buy Snapchat stock?
Snap’s chief executive, Evan Spiegel, said on the conference call: “Our business really came together towards the end of last year.”
While the company is not yet profitable, Snap is spending less and growing more. This is good news for investors.
I do not know if this is the buy Snapchat stock news just yet. If an investor really needs to be a part of this stock, buy Snapchat stock options. Long term calls would be the best way to play it. I do believe the stock will go lower sometime, because Snap has to show the market that they can grow their company a minimum of two to three earnings in a row. But, this is a good start.