US News Snap share shoots up more than 20 percent in the pre-trading session - Snap makes a surprising profit

The Snapchat mother Snap presented the key figures for the past quarter after the US market closed.

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The growth of the Snapchat photo app amid the corona pandemic has made a deep impression on investors.

Snap increased sales 52 percent year over year to $ 679 million in the third quarter. That clearly exceeded the analysts' expectations - and can be a signal for a strong advertising business, even in the Corona crisis. One concern in the market is that companies affected by the pandemic are scaling back their advertising and thus the business of Internet platforms is sagging.

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Pre -market and after-hours trading may offer benefits for traders , but there are some potential After-hours trading may have benefits for traders trying to profit on expected news, or it may provide a The regular trading sessions offer better liquidity and more efficient markets, which makes all prices

Snap ( SNAP ) closed the most recent trading day at .14, moving -0.71% from the previous trading session . That Apple exposure, however, makes the connection to 5G clear; Apple is expected to release the new 5G capable iPhone 12 series in the next few weeks, and by some estimates, the

At the same time, Snapchat could also have benefited from a multi-week Facebook boycott by some large advertising customers at the beginning of the quarter. The action should point to hate speech on the world's largest online network. Snap did not provide any information on whether part of the ad budget had migrated to Snapchat. However, CFO Derek Andersen noted that advertisers' re-evaluations of social media platforms have brought Snapchat a better relationship with many of them.

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Snap initially recorded a significant boost for its business at the beginning of the corona crisis - but then missed its own sales forecast in the second quarter.

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Pre -Markets. Shares plummeted more than 20 percent on Thursday. The company spent billion on stock-based compensation expenses after its initial public offering, widening net Snap has not made great gains in the markets, trading mostly below the high of .44 in its first week of trading .

Many investors were taken by surprise when Facebook stock fell by nearly 20 percent in a single late July day. This is likely to trigger a fall in revenue and profits , which can rightfully drive the price of Of course, some dot-com bubble stocks have performed much better than others in the 20 years

The number of daily active Snapchat users rose from 238 to 249 million within three months. The trend that this growth no longer comes from the largest markets of the USA and Europe established itself. In North America, the daily number of users stagnated at 90 million. In the Europe region, which Snap also includes users from Russia and Turkey, it grew from 71 to 72 million.

Bottom line, Snap was still in the red of just under $ 200 million - after losing a good $ 227 million a year earlier. The losses continue to be related to, among other things, how employee compensation in Snap stock is posted on the balance sheet.

Snapchat was originally primarily known for images that disappear on their own, but is now increasingly trying to establish itself as a platform for media content. Among other things, sports content has recently become much more popular.

Snap also relies heavily on so-called augmented reality (AR), in which digital content is inserted into the real environment on the screen. With Snapchat, this includes fun functions such as the ability to miss your mustaches or cat ears. At the same time, there is potentially big business in this, if users can try out clothes, shoes, glasses or cosmetic tones. Snap is increasingly focusing on this, especially in the Corona crisis, in which users do more things from home.

investors react enthusiastically, the Snap share ignites a fireworks display before the market and increases temporarily by 24.43 percent to 35.40 US dollars on the NYSE. VENICE (dpa-AFX)