Snap Shares Jump As Returning Users Boost Revenue



Chris L. Joining me in studio in the heat of earnings. Palooza is the one and only Abby Mellon thanks for being here is my favorite week of the year and it comes four times a year. I love it. We got like seven hundred companies reporting this week things to talk about all the things to talk about and we're not gonNA talk about all of them. Although there are the huge companies reporting that we're just not going to be able to get to we will talk about the latest from Visa and Chapel we gotTa Start Though with snap shares up sixteen percent this morning after snap lost money in the second quarter just just not as much as everyone was expecting them to lose. What do you think when you look at this company? I mean the the stock has just been insane this year. It has basically tripled in twenty nineteen so we'll we'll get to this quarter in a second but when you look at just that shares of snap tripling in basically six months and change does that get you excited or is this one of those things that you look at anything. Oh my God you you can buy that if you want but I'm not <hes> probably more of the ladder not the former but I do think a little bit of that is that snap was punished pretty pretty harshly I would say in their <hes> market debut and so people were kind of taking their hands off of it fell significantly <hes> I think maybe that was a little bit of an overreaction but I do think it's interesting given the environment that we're currently in with large tech and specifically large social media companies sort of the more scrutinized and you're seeing regulators get involved a little bit more than normal. I do think it's very <hes> a little bit counterintuitive. That snap would be doing this well so we've talked before. For about advertisers essentially looking at Google and facebook as must have is snap moving into that category if only for a certain segment segment of the consumer base out there is this is snap now. If you have a product that you're selling and your target market is people thirteen to thirty four years old a snap now an automatic go-to for you. It's interesting you ask that so I think this turnaround <hes> was Spiegel's idea to stop trying to attract all users and really just focus on engaging specifically with that sort of younger demographic base. I think if you look at pinterest it's maybe kind of a similar idea where it's very wean niche in that. It's <hes> majority women <hes> So do you think focusing rather than fighting. That trend is helpful so you saw their average revenue per user increase to a dollar ninety one versus a dollar eighty four it was expected so pretty significant growth in that and I think maybe a little bit of that is that less advertisers are interested but the ones who are have to be there. You mentioned Evan Spiegel the C._E._O.. It is interesting to see and sort of his tenure as he continues to lead this company and I think you're you're probably right. When you look at the the full like one year chart of this stock I mean it's tripled in two thousand nineteen but really over the past twelve months? It's basically up thirty percent. I mean really got hit hard at the end of last year and it does seem like at least part of what we're seeing in. Two Thousand Nineteen

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