Break out the champagne and make a toast to Snap (SNAP), which posted a quarterly profit for the first time ever last week. After being dragged down more than 20% along with Meta (FB) on Thursday, Snap reported its Q4 profit of $22.6m after the closing bell and rebounded by nearly 60% the next day.
Snap also managed to beat analyst expectations for revenue and number of daily active users. The social media company reported revenue of $1.3b compared to the expected $1.2b and has up to 330 million daily active users versus the 327.8 million analysts were expecting. The daily active users is an important metric for social media companies when it comes to attracting advertisers.
Another social media company that had a comeback on Friday was Pinterest (PINS). The image sharing company beat earnings with a 20% year-over-year growth in revenue. Shares of PINS rose by 11% on Friday, reversing the long downward trend they’ve been on since the spring of 2021.
Why it matters
On another positive note, Snap is starting to recover from the negative impact that Apple's (AAPL) recent iOS policy change had on it. iOS users are now able to opt out of ad tracking on platforms like Snapchat, giving these platforms less data to attract advertisers with.
