The multimedia messaging platform Snap Inc (NYSE:SNAP) saw its stock gain recently after the company managed to beat expectations in the first quarter. Revenues soared by 66% year on year to hit $770 million and beat analysts’ estimates by $28 million.
Investors might be reluctant to consider the Snap stock in light of the massive gains it recorded in the past year but there are reasons to believe that there might be further upside in the stock.
The company has managed to grow its daily active user’s figures consistently and in the first quarter of 2021, it grew by 22% year on year to 280 million. On the other hand, the company projected that its revenues in the second quarter to rise by 81% to 85% and such a confident projection could cause more optimism about the stock.
The eCPM (effective cost per thousand impressions, or the average cost of its ads) recorded by Snap soared by as much as 67% in the first quarter and that is expected to be another factor in the potential growth of the company.
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Living in the era of dynamic tech change Alex decided to stay tuned in changes that make any person find comfort and adapt to new devices. Furthermore, gaming became his passion for spending leisure time with his close ones. Although, he has a degree in Business Administration (majoring in Finance) writing for technology and as well as finance has been one of the precious aspects of his life