Snap rallies as robust ad sales lift quarterly revenue above estimates

Snap

04/08/2026 09:23

** Shares of Snap SNAP.N jump 8% to $5.45 premarket
** The social media company beats second-quarter revenue estimates, supported by increased ad spending during the FIFA World Cup and strong campaign activity from large advertisers in North America
** Quarterly rev of $1.60 billion beat estimates of $1.54 billion, while midpoint of third-quarter revenue forecast range of $1.70 billion-$1.74 billion is above the $1.70 billion estimate
** Company's daily active users rose about 5% to 493 million in second quarter, but reports nearly 7% decline in North America and about a 2% drop in Europe
** "Ongoing efforts to improve monetization and scale profitability are beginning to pay off," J.P.Morgan says, adding that demonstrating durability and consistent execution will be critical
** Stock recently traded at 7 times expected earnings, vs a 5-year avg of 48, suggesting it may be undervalued, per LSEG-compiled data
** Stock down 37.5% YTD, underperforming the S&P 500's .SPX 11% gain


 (Reporting by Joel Jose in Bengaluru)
 ((joeljose@thomsonreuters.com))