Finance

Snap shares gain as it reports quarterly growth in users and revenues

Snap shares gain as it reports quarterly growth in users and revenues

The firm now has a $16.00 price objective on the stock.

The CEO further noted his company was going to focus less on hiring new staff and more on increasing productivity.

Plus, Snap said 90% of its ads were purchased programmatically in the quarter, "which means that the auction transition for Snap Ads is largely behind us", Spiegel wrote in prepared remarks. Following the transaction, the vice president now owns 2,532,598 shares in the company, valued at $31,758,778.92. Instagram has been adding more and more features in an effort to push Snapchat out of its own market, so you'd think that Snap would want to publicize any new features as often as possible. Jefferies downgraded Snap to a Hold rating from Buy with a $15 price target. Fourteen research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. Snap has a 52-week low of $11.28 and a 52-week high of $29.44. The firm has a market cap of $24,990.00 and a PE ratio of -6.53. Year-to-date, SNAP has declined -3.76%, versus a 0.85% rise in the benchmark S&P 500 index during the same period. It reported an adjusted loss of 13 cents a share, beating the consensus estimate for a 16-cent loss.

Revenues of $285.7m were up 72 per cent from the year-ago quarter and ahead of the $253m analysts had predicted. Snap had a negative net margin of 463.16% and a negative return on equity of 107.36%.

Snap also increased its daily active users by 8.9 million, a 5 percent increase, bringing its total to 187 million, the company said in an earnings release. That sent the stock popped on the news - rising almost 20% to $16.82 a share.

That now stands at 14.3% of outstanding shares sold short. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The disclosure for this sale can be found here.

In a note to investors, Pivotal analyst Brian Wieser cast doubt Snap's long-term ability to compete with Google and Facebook, its corporate management, and its costs.

"[We] can infer this result at least partially reflects some degree of deceleration in spending from large brands, which generally view Snap as a niche platform rather than something core to their typical campaigns", wrote Wieser.

The hope is that Snap will grow into its expectations. Westwood Holdings Group Inc. bought a new position in Snap during the second quarter valued at about $148,000.

Snap Inc (NYSE:SNAP) opened at $20.75 on Thursday. Snap stock is down over 43 percent since its first day of trading in early March and the company looks a lot more like the next Twitter than it does the next Facebook. Non-GAAP earnings were 14 cents a share for the second quarter. Finally, BlackRock Inc. lifted its holdings in shares of Snap by 10.0% during the 2nd quarter.

Institutional investors and hedge funds have recently modified their holdings of the stock.