Snapchat just did something insane. It beat expectations

Snap is redesigning its app to make it easier to use

The positive news sent shares of Snap soaring more than 23% in after-hours trading on Tuesday to $17.32, as investors showed renewed confidence in Snapchat's ability to add new users to help it compete with larger social media rivals like Facebook and Facebook-owned Instagram.

However, net losses increased in the previous quarter, doubling to $350 million.

Fortune noted that, since its public launch in March, Snap has failed to impress investors with its slowing user growth but the revamped version of the app seeks to simplify navigation and include tools that allow user to share content beyond their social circle. With muted notifications, Snapchat users may also be moved to check the app more often, leading to more usage and engagement.

Spiegel said early feedback shows the redesign makes the app easier to user, "especially for older users". The company had a trading volume of 166,232,094 shares, compared to its average volume of 22,712,875. SunTrust Banks reaffirmed a "sell" rating and set a $10.00 target price on shares of Snap in a report on Thursday, October 12th.

"This was a monster quarter relative to bearish expectations", analyst Daniel Ives of GBH Insights said, cautioning however that "competitive headwinds abound with Instagram front and centre". Ever since the company behind Snapchat publicly unveiled paperwork with plans for a $20 billion IPO nearly exactly a year ago, concerns have surfaced about Snap's long-term viability.

Snap has been constantly tweaking its service, redesigning and adding new features, aiming to improve the overall experience for existing users and make it more appealing to new customers. Wall Street, however, is looking for the company to report revenue of $253 million, up 52% from Q4 2016.

Meghan Markle's shocking message to her brother ahead of wedding
Ann Widdecombe has suggested Prince Harry will tweak his royal role to stay with Meghan Markle . "I know I joke around a lot, Mr. "Congratulations to my TV daughter Meghan Markle and Prince Harry on the news of their wedding engagement", he wrote .

United States oil heads to Middle East in latest sign of shale's spread
In November, oil production surpassed 10 million bpd for the first time since 1970, and neared the all-time output record. China has granted crude oil import licenses to independent refineries in the country's northeast since 2015.

North Korean delegation will not meet United States officials during Olympics: KCNA
It's unclear whether any member of the North Korean government delegation will hold talks with USA officials during the Olympics. Speculation is rife about whether he will meet with members of North Korea's official delegation on the sidelines of the games.

Mr. Greenfield said Snap was a communications company that was trying to develop an advertising business.

Excluding items, Snap reported a loss of 13 cents. The company reported ($0.14) earnings per share for the quarter, topping the Thomson Reuters' consensus estimate of ($0.31) by $0.17.

Brian Wieser, senior research analyst for advertising at Pivotal Research Group, took a rosier view in a note to clients today, observing that advertisers outside of the Ad Age 100 accounted for more than half of Snap's revenue for the first time.

Revenue: $285.7 million (£205 million), up 72% year-over-year and above the $252.8 million (£181 million) expected by analysts. The company posted average revenue per user was up 46% year-over-year. A majority of these ad buyers (96%) said that they would prefer to advertise on Instagram, the leading competitor to Snap. In Q4, the number of Snap Ads served increased by 575 percent year over year.

"We executed well on our 2017 plan to improve quality, performance and automation, which removed friction from our advertising business and improved our application for the Snapchat community".

Related news:

Hot News