Snap (SNAP) - Get Snap, Inc. Class A Report shares surged to a record high Friday after the instant messaging app maker blasted second quarter earnings forecasts with the strongest user growth rates in at least four years.
Snap posted topline revenues of $982 million for the three months ending in June, a 116% gain from the same period last year, as daily active users rose 23% to 293 million, a figure that beat Street forecasts by around 3 million. The group's net loss was pegged at 10 cents per share, compared to a Street consensus of -18 cents.
Looking into the current quarter, Snap said it sees revenues of between $1.07 billion and $1.09 billion, with daily active users topping 300 million by the end of September.
This puts extra emphasis on next week's
"Spiegel is crushing it," said TheStreet's founder, Jim Cramer, on CNBC's Squawk on the Street program of Snap's co-founder and CEO Evan Spiegel. "I just thought this quarter was amazing. Everyone wants to advertise here and it just shows you that, if you want to reach consumers of a certain age, then you go to Snap."
"When Spiegel first started, his conference calls were kind of 'belly up to the bar at let's talk'," Cramer added. "Now they're far-more orchestrated. They're fantastic."
Snap shares were marked 22.5% higher in early Friday trading to change hands at $77.15 each, a move that extends the stock's year-to-date gain to around 55% and a market value of around $121 billion. The shares hit an all-time high of $78.68 earlier in the session.
Snap is seeing strength across the board, from multiple verticals (including retail and restaurants), and across all its ad products," said Wedbush analyst Ygal Arounian, who carries and outperform rating with an $88 price target on the stock.
"Comps get tougher from here, but we continue to see Snap as extremely well-positioned to capture greater digital ad wallet share, in the near-term from greater brand dollars coming on through ad products like Story Ads, Commercials, and stronger bidding based objectives," Arounian added.