Why Snap Crashed and Then Soared This Week
Down as much as 24% at one point on Thursday, shares of Snapchat parent Snap (NYSE: SNAP) came roaring back on Friday following the release of impressive fourth-quarter numbers. According to data from S&P Global Market Intelligence, as of 11:40 a.m. ET today, the stock's up 47% for the day, translating into a full-week gain of 18%.
Facebook's parent company, Meta Platforms (NASDAQ: FB), deserves most of the blame. The social media company's flagship platform, Facebook, saw its number of daily users sequentially shrink ever so slightly during the final quarter of last year -- a first for the site. Monthly users were essentially stagnant. While the contraction didn't prevent revenue growth, concerned investors interpreted Facebook's headwind as a red flag for the entire social networking industry.
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Source Fool.com
