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Investing.com — Snap is soaring almost 30% after reporting way better-than-expected results.
Daily active users jumped 18% in the third quarter from a year earlier, and revenue soared 52%, to $679 million, which beat the estimate of $551 million. The loss per share of 14 cents was better than the expected loss of 18 cents.
The stock received a slew of analyst price target upgrades upon releasing its results.
Jefferies (NYSE:JEF) maintained a buy rating on the shares and bumped its price target to $41 from $33, saying the stock remains a top pick, and guidance for the fourth quarter seems achievable given third quarter growth, according to StreetInsider.
Morgan Stanley (NYSE:MS) maintained its equal-weight rating and boosted its price target to $36 from $25, and pointed to the bullish read across peers, including Pinterest (NYSE:PINS), as Snap (NYSE:SNAP)’s results could lead to even larger high margin ad beats compared to expectations, StreetInsider said.
The market seems to agree, driving Pinterest higher by 14%. The stock also got upgraded by Goldman Sachs (NYSE:GS), to buy from neutral, and with a price target of $61, up from $37. The analyst cited strong user growth and advertiser demand that has increased for Pinterest, Twitter and Snap, StreetInsider reported.
Bank of America (NYSE:BAC) also upgraded Pinterest to buy from neutral, setting a $58 price target, up from $45, citing Snap’s results.
