SNAP stock is making a big move in Wednesday’s trading session after Snap Inc. (NYSE:SNAP) posted a better-than-estimated revenue and earnings for the second quarter.
Snap has seen exceptional growth on its Snapchat app after the company launched a new version of the Android app with more fun ways for users to manipulate videos and photos. The company indicated that in the second quarter, it had an average of 203 million users, which surpassed analysts’ estimates of 191.7 million users.
The New Version of the Mobile App Spurring Growth
The growth in the number of users is good news as the company is on the path to recovery following a rough period last year. Following the report, Snap has since seen its stock gain by over 13%. Snap stock has more than doubled since the beginning of the year, and investors are remaining optimistic regarding Snap’s projects.
Snap has managed to deliver a new version of its Android mobile app with new augmented reality (AR) photo lenses, which is expected to increase the number of users. The AR lenses enable users to change their gender in the images, and they are filters with a range of overlays. The company has projected its daily active users to grow in Q3 to around 205 million and 207 million.
CEO Evan Spiegel stated that the popularity of the AR lenses attracted more users to the new version of the Snapchat app because of enhanced engagement. He added that following successful product evolution, the company is now better positioned for future success.
At the time of writing, SNAP stock is trading higher by 16% at $17.21 after hitting a new 52-week high of $17.40 earlier in the session.
>> ACAD Stock Slumps to 5-Month Low on Schizophrenia Setback
Q2 2019 Results
For the latest quarter, Snap’s net loss narrowed from $353.3 million or $0.27 a share to $255.2 million or $0.19 per share. Revenue grew by 48% to around $388 million, beating Wall Street’s estimate of around $359 million. Going forward, the company has estimated its Q3 sales to range between $410 million and $435 million, thus beating the average analyst estimate of around $402.9 million.
So far in 2019, SNAP stock has outperformed the broader market with a gain of about 195%, compared to 20% on the S&P 500.
Featured image: DepositPhotos © TPOphoto
