AP Photo/Jae C. Hong
- Snap’s strong third-quarter earnings sent its stock price up as much as 37% on Wednesday, lifting its market capitalization as high as $57 billion.
- The Snapchat owner posted a 52% increase in revenues, fueling $56 million in adjusted profits compared to a $42 million loss in the same period of last year.
- Snap also added more than 11 million daily active users in the three-month period.
- The company benefited from advertisers boycotting Facebook and seeking to reach users on their devices as they spend more time at home.
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Snap stock soared as much as 37% on Wednesday after the social-media giant’s third-quarter earnings blowout, driving its market capitalization as high as $57 billion.
The Snapchat owner’s revenues soared 52% year-on-year to $679 million, blowing past the $559 million consensus estimate of analysts polled by Bloomberg.
The company also posted $56 million in adjusted EBITDA — a profit measure that excludes costs such as interest, tax, and stock awards — compared to a $42 million loss in the third quarter of 2019.
The financial gains reflected an 11 million increase in daily active users in the three-month period to 249 million. The group also cashed in on robust advertising demand, as brands rushed to reach consumers on their devices during the pandemic, and marketers boycotted Facebook over its lax policing of hate speech and misinformation on its platform.
Snap's stock price has skyrocketed more than 130% this year, adding about $32 billion to its market cap.