Snapchat stock pops despite drop in users

Snap Inc. on Tuesday reported a better than expected loss of $353.3 million in its second quarter, sending the stock up as high as 6 percent in after-hours trading. 

The Venice, California-based company said it had a loss of 27 cents per share. Losses, adjusted for stock option expense and amortization costs, came to 14 cents per share.

That’s despite a drop in active users—a first for the company. Daily active users on the platform decreased by 3 million in the quarter, to 188 million. 

The results beat Wall Street expectations. A Zacks Investment Research estimate showed an expected a loss of 17 cents per share.

The company behind Snapchat posted revenue of $262.3 million in the period, also topping the estimate of $247.2 million.

For the current quarter ending in October, Snap said it expects revenue in the range of $265 million to $290 million.

Snap shares have dropped 10 percent since the beginning of the year. 

© 2018 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Categories: Technology

Leave a Reply

Your email address will not be published. Required fields are marked *