Snap Soars After Q4 Results Point to Turnaround Progress
*By Chloe Aiello*
Shares of embattled social media company Snap soared more than 16 percent in extended trading on Tuesday, after the company beat Wall Street's expectations for its fourth-quarter financial results and reported users stayed relatively stable from a year ago.
Wedbush's Dan Ives said the results showed signs of progress.
"With a lot of these turnaround stories, it's not just one quarter ー you need a few quarters to really see these turnarounds take place, but no doubt it looks like a step in the right direction," Ives said.
Snap ($SNAP), which is best known for its application Snapchat, reported a loss of $0.04 per share on revenue of $390 million, beating Wall Street’s estimates of a $0.07 loss per share on $377.52 million in revenue, according to Thomson Reuters.
“We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full-year revenue 43 percent year-over-year,” Snap CEO Evan Spiegel said in a statement.
In the ever-important category of daily active users, which measures audience engagement, Snap reported 186 million ー the same number as in the third quarter, and only slightly less than the 187 million it reported this time last year. Average revenue per user came in at $2.09 vs. $1.53 last year.
Snap also said 30 percent more users are using its Stories and Shows features daily.
Bruised by competition from Facebook’s ($FB) Instagram, and a virtual rotating door of executives, Snap’s stock is down close to 50 percent from last year.
The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as independent contractors. The labor department rule going into effect Tuesday replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors
The KC-46 was to be the ideal candidate for a fixed-price development program. Instead, it has cost Boeing billions, and made industry wary of such deals.
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
