Snapchat: Here’s How Snap Inc. [SNAP] Is Doing Right Now

Snap Inc. (SNAP), the parent company of Snapchat, has released its first-quarter report. We have excellent metrics across the board on all social media channels, and we expect improvements in the second quarter.

SNAP Stock started the day trade at $60.02 and recorded an intraday high of $61.44. During Monday’s trading session, the stock reached an intraday low of $58.58. On Monday, Snap Inc. traded at 58.24% of its average daily trading volume, a very high volume for a company. This morning, the stock’s trading volume was 38.18 million, or slightly below -58.24% of the 38.18 million total daily volume.

Snap Inc.’s (SNAP) revenue in the past quarter was $ 770 million, an increase of 66 percentage points year-on-year. Users engaged in online entertainment increased by 22 % during the COVID-19 period, mainly due to higher user engagement. However, positive cash flow reached over $ 126 million for the first quarter during the same period; the SNAP stock suffered over $ 287 million in losses during the quarter.

During the first quarter of 2021, Snap achieved its highest revenue growth since the end of the previous year in terms of both audience and revenue. Furthermore, the SNAP stock’s cash flow turned positive for the first time, which proved attractive for investors.

Additionally, Snap expects positive momentum to continue. The SNAP stock expects second-quarter revenues to range from $720 million to $780 million. Despite that, the SNAP stock still expects negative EBITDA to be up to 20 million.

Snap-ins each quarter of 2020 will boost the audience by at least 17 to 22% but will likely reduce the momentum gained from forced isolation. In April 2021, some Wall Street analysts predict online media usage will rise further and then grow at a slower pace.

Meanwhile, the Internet is becoming an increasingly significant part of marketing programs. Advertising on the Internet is becoming more and more popular nowadays as many advertisers prefer it to other platforms. For Snap Inc. (SNAP), this is an opportunity to increase profitability.

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