Investors May Be Underestimating Snap's User Growth
A year ago, Snap (NYSE: SNAP) appeared to be in real trouble. The Snapchat parent's daily user count was shrinking, and shares were seemingly in a free fall as the company continued to lose money. The stock hit a low of $4.82 in December, versus its 2017 IPO price of $17 and a 2017 peak of $29.44.
What a difference a year makes. Snap stock is now trading above $15 per share, largely driven higher by a combination of rekindled user growth and improving per-user revenue. The social networking app now boasts 210 million daily active users, up 13% year over year, and Q3's total revenue of $446 million translated into average revenue per user (ARPU) of $2.12. All of the metrics showed improvement, and the quarter marks the third in a row the company's user base expanded.
Bigger and better numbers are on the way, too, if eMarketer's most recent forecast is anywhere on target. In fact, eMarketer's outlook includes a nuance that could end up even taking analysts by surprise.
Source Fool.com
