Is Snapchat ready to bounce back?
After falling to below $5 per share at the end of 2018, Snapchat (SNAP) has seen its stock price rebound, doubling in price to over $10 a share today. A year which began as fearful for SNAP investors is quickly turning into optimism that the company can turn things around, and fast.
Recent Earnings
In its recently released fourth-quarter earnings report from last year, SNAP produced numbers that did not overwhelm investors, but did enough to prove it has stabilized its business in the wake of great uncertainty.
Revenues for the quarter came in at $390 million, an increase of 36% year-over-year. Meanwhile, daily active users (DAUs) remained constant from the previous quarter at 186 million, even after analysts believed DAUs would fall to 184 million for the quarter.
These numbers, while not groundbreaking, did enough to excite investors, and SNAP rose 20% in after-hours trading following the news.
Strong Customer Base with Room for Growth
Two years since their creation, social media networks have become ubiquitous in teens and young adults. Luckily for SNAP, it’s the single most preferred social media channel for this key demographic.
