Snapchat Stock Soars on Revenue Gains

Deutsche Bank Reiterates “Hold” Rating for Snap (SNAP)

"With our plans for user growth, augmented reality, and content in 2018, I have never been more excited about the future of our business". Snap has invested heavily in driving its ad business forward, buying a company that helps measure in-store foot traffic, and adding ad-serving tools for its clients.

Shares of Snap, the parent company of teen app darling Snapchat, skyrocketed following some rare good news for the company.

It's been a year since Snap Inc filed for its IPO, and all told, it's been a tepid 12 months for the company. CNN, for example, launched a daily news show on Snapchat back in August, but cancelled it shortly after when it wasn't making enough money. It reported an adjusted loss of 13 cents a share, beating the consensus estimate for a 16-cent loss.

The silver lining in a hard 12-month period for Snap is that it continues to grow both users and revenue despite Facebook's ruthless attempts to demolish it. Facebook's copies have certainly hurt the company, but they have not killed it yet. It's a significant boost in users since the third quarter of 2017, when Snapchat added just 4.5 million DAUs.

The social media firm added 8.9 million daily active users quarter over quarter, bringing the total to 187 million for a 5% increase.

The report, Snap's first annual earnings disclosure since it went public last March, marks the end of a bumpy year for the seven-year-old company. A fresh design followed, and since then we've also heard that Stories will soon be available on the web. He also writes at length about the Snapchat redesign. Net losses came in at $349.98 million, compared to net losses of $169.95 million during Q4 of 2016.

Snap surprised Wall Street on Tuesday with a rebound in user growth for its Snapchat messaging app, showing resilience amid competition with Facebook's Instagram and sending shares up almost 30 percent. That's right - they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Facebook.

Options are pointing to a double-digit move in the shares, with $15 puts and calls the most widely held options.

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