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NEW YORK (dpa-AFX) – Strong quarterly figures from Twitter, but above all from Snap, triggered sharply rising share prices across the tech and social media industry on Friday. Earnings were led by Snap stock, which soared more than 20 percent to its highest level since going public more than four years ago.
Snap had recently found many new, active followers with new offers, especially among young people, which in turn attracted the advertising companies. That also boosted the revenue of the Snapchat photo app. The number of daily active users increased in the three months to the end of June by 23 percent year-on-year to 293 million.
Analyst Stephen Ju from the Swiss bank Credit Suisse increased the target price for Snap from 90 to 110 US dollars and reiterated the rating “outperform”. Snap exceeded expectations in the second quarter. The company is still in the early stages of a ten-year upward cycle.
For the papers from Twitter it went up 4.5 percent to the highest level since the beginning of March. The short message service exceeded the forecasts of analysts both with the quarterly figures and with the outlook for the next few months. Revenue in the second quarter rose 74 percent year over year to just under $ 1.2 billion.
Analyst Doug Anmuth from the investment bank JPMorgan (JPMorgan ChaseCo) then screwed the price target for the shares up by 10 to 90 euros and continued to advise to buy. The report for the second quarter shows how “healthy” the company’s sales growth is. It is now paying off that the management has consistently focused on turning the offers for users into face value over the past two years.
The strong quarterly reports also drove other stocks in the industry up on Friday. Facebook rose by 4.8 percent and reached the highest level in its stock market history at a good $ 368. A higher price target from Credit Suisse of $ 480 also provided a tailwind. That gives the course an upside potential of a good 30 percent. The papers from Pinterest, an online bulletin board for graphics and photos, advanced 3.8 percent./bek/jsl/he
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