Snap’s (SNAP) stock closed 58% higher on Friday afternoon, marking its best daily gain ever. the parent company of Snapchat reported its first net profit for the quarter on Thursday, sending the stock on meteoric rise. Snap also surpassed analyst estimates on revenue, earnings, and user growth, which increased 20% year-over-year to 319 million.
The results and stock’s performance was a stunning reversal from Thursday, when social media stocks were getting hammered.
Snap was down 23% prior to its results on Thursday, the lowest level since September 2020. The stock moved lower in sympathy with Meta, which reported disappointing earnings on Wednesday after the bell.
Social media platform Pinterest (PINS) was also lower but shot up in after-hours after reporting better-than-expected results.
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“The market seems to be getting more and more volatile every earning season, and that’s exacerbated right now by jus the dynamics with the Fed, with interest rates going up,” Justin Patterson, analyst at KeyBank Capital Markets told Yahoo Finance Live.
“The other side of that, going through earnings and trying to figurer out of these high multiple assets, which ones are going to beat and which ones have a material reset to the downside,” said Patterson.
Snap reported adjusted earnings per share of 22 cents and revenue of $1.3 billion, both of which topped expectations.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre