Snap Inc. (SNAP) shares surged 5.04% during intraday trading on Monday, as investors reacted positively to analyst expectations ahead of the company's upcoming first-quarter earnings report. The significant uptick in share price suggests growing optimism about Snap's financial performance and user growth.
Wall Street analysts are projecting Snap to report quarterly earnings of $0.04 per share, representing a year-over-year increase of 33.3%. Additionally, revenues are expected to reach $1.35 billion, up 12.7% from the same quarter last year. These projections indicate that Snap may be successfully navigating challenges in the digital advertising market and continuing to grow its user base.
Analysts are particularly focused on key metrics such as Daily Active Users (DAU) and Average Revenue Per User (ARPU). The consensus estimate for global DAU is 458.96 million, up from 422 million in the same quarter last year. This growth is primarily expected to come from the Rest of World segment. Meanwhile, North America's ARPU is anticipated to reach $7.99, showing an improvement from $7.44 in the previous year. These metrics, if achieved, would demonstrate Snap's ability to both expand its user base and monetize its platform more effectively.
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