So we'll start talking about our stock of the week and its social media companies
that we all know snap.
It seems to be weathering the Apple IOS
privacy changes much better than its competitors.
So the stock is set to end the week with big
gains most of the jump in the stock happening today after
the company reported its first quarterly net profit and beat analyst
estimates across the board for earnings revenue and user growth.
So right now shares are up about 23%.
Um, and if you know,
staff reported earnings per share of 22 cents on revenue of $1.3
billion that's a beat on both the top and the bottom lines.
And unlike their competitor, meta
snap actually reported an increase in daily
active users for their past fourth quarter.
So there at 319 million users and the estimate was actually only 316.9 million
average revenue per user also came in a little better than expected at $4.06.
So snap is also raising its expectations for the first quarter.
It's predicting daily active user totals of between 328 million 338 million.
That's topping analyst estimates as well of 327.8 million.
Yeah, overall here snap is a success this week,
Michelle despite having to deal with similar headwinds
like rival tech giant meta facebook's parent company,
apples changed to its IOS privacy
features have collaborated social media companies
in recent months and meta seems to be taking it the worst.
The company anticipates it will lose $10 billion dollars in revenue this year
because of Apple's privacy changes that make it
harder to target consumers with advertising content.
But snap says it's no big deal.
Ceo Evan Spiegel said the company has been less
affected by the privacy change because it's earlier along in
its monetization journey and has more flexibility because it
generates a fraction of the average revenue per user.
That facebook does.
He added snap isn't seeing that big of an impact because its advertisers
have been able to adopt the company's first party tools like advanced conversions,
which is snaps privacy centric approach to digital ads,
snap says advanced conversions help marketers meet their business objectives
while also complying with Apple IOS tracking preferences using uh,
chosen by each user.
Well, snap.
Of course it distributes its app on the apple app store just like meta does with
facebook and instagram and WhatsApp and it relies
on serving advertising content to monetize its business.
So snap CFO, Derek Anderson,
He also added that the company's direct response
advertising business experienced a recovery from the IOS changes
faster than anticipated because employees have been mindful of
making privacy an inherent part of snaps products.
Anderson did say that he does still think it's going to
take a couple more quarters for snap's advertising partners to quote,
build full confidence in our new measurement solutions
snapped still does have a long way to go to recover from a recent tech selloff, but
analysts don't seem to be too worried at this point.
Yes,
Stifel analysts maintaining a buy rating on snap and raising
their price target for the company from $45 to $50,
citing the difference between the quote strength and
tone of snap and metas earnings calls.
The latter of which raises questions about why Meta is seeing such a grating impact.
Wedbush analysts, meanwhile,
have downgraded snap to neutral but raised their price target from $36 to $40.
Also citing snap management's comment about how the company's ad
targeting products were initially built with user privacy in mind.
One question remains here amid intense regulatory
scrutiny of other companies like Mata,
Apple and Amazon.
Why has snapped not been a target for lawmakers in D. C.
Could they be wrapped up in tech regulation discussions
soon?
Michelle,
That's just one question we'll have to wait to answer but for
now snap really benefitting in ways that meta was not able to