About 6 months ago, Snapchat looked like Instagram’s roadkill
If you picked up a few shares of Snap Inc., Snapchat’s parent company, over the holidays last December, congratulations: Snap’s stock, one day after the company reported its best user growth in years, has surged 17.5% on Wednesday morning and has now tripled in value since the start of the year.
Snap shares were trading at $17.4 early Wednesday — a far cry from where the Los Angeles-based company was in early January, when it was trading at $5.79 per share. Even bleaker, Snap sank below $5 per share a week before Christmas 2018.
Wednesday’s big run comes after Snap reported it added 13 million new daily active users during the second quarter, marking the first time since mid-2016 Snapchat added more than 10 million DAUs in a single quarter. Snapchat now has 203 million daily users. Snap’s sales were greater than analysts expected as well, with the company pulling in $388.3 million during Q2, a 48% year-over-year increase.
Snap had already been on a run before sharing its Q2 results, with the company returning to positive user growth during the…
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