Snap Surges 10% on Strong Q4 Performance

Snap Inc. reported fourth-quarter results that exceeded Wall Street expectations, with earnings per share of $0.16 and revenue of $1.56 billion, leading to a stock price increase of about 9% after hours. The company saw a 9% year-on-year increase in daily average users, reaching 453 million, which also surpassed analyst forecasts. For the first quarter, Snap anticipates revenue between $1.325 billion and $1.36 billion, slightly above market expectations, though adjusted earnings are projected to fall short of analysts' predictions. The company is also planning a year-over-year increase in operating expenses of 11% to 12%, driven by hiring and legal costs. CEO Evan Spiegel noted that Snap is focused on growing its community and enhancing user engagement while continuing to invest in its advertising platform. Analysts are optimistic about Snap's future revenue growth, projecting a 12.8% increase over the next year, signaling potential for sustained improvement.