Snap Inc shares surged 14% after the social media company reported second quarter revenue of $1.60 billion, above the $1.54 billion analyst consensus, and provided an upbeat third quarter outlook. The net loss of $0.10 per share was narrower than the expected $0.12 loss, with advertising revenue growth accelerating to 9% year over year from 3% in the first quarter. Daily active users reached 493 million, exceeding the 488 million forecast, while North American daily active users stabilized sequentially after two quarters of decline. For the third quarter, Snap guided for revenue growth of 13% to 15% year over year, with the midpoint ahead of Wall Street's 13% estimate. Jefferies analysts reiterated a Buy rating and raised the price target to $6 from $5.50, citing the stronger results and outlook, though they noted that sustained momentum in the second half is important for a meaningful re-rating of the stock.
Snap IncQ2 revenue and outlook beat estimates, with narrowed loss and raised price target