Snap Inc. (SNAP) shares are soaring 5.04% in intraday trading, as investors show enthusiasm ahead of the company's upcoming first-quarter earnings report. The significant uptick comes despite a recent target price cut by Deutsche Bank, suggesting that positive earnings expectations are outweighing other factors.
Wall Street analysts are projecting Snap to report quarterly earnings of $0.04 per share, representing a 33.3% year-over-year increase. Revenue is expected to climb 12.7% to $1.35 billion. These projections have fueled investor optimism, even as the consensus EPS estimate has been adjusted downward by 7.1% over the past month.
Analysts are closely watching several key metrics for Snap's performance. The company's Daily Active Users (DAU) are expected to reach 458.96 million globally, with particular attention on growth in North America, Europe, and Rest of World markets. Additionally, Average Revenue Per User (ARPU) in North America is anticipated to increase to $7.99, up from $7.44 in the same quarter last year. These metrics, along with geographic revenue breakdowns, will be crucial in assessing Snap's growth and monetization strategies in an increasingly competitive social media landscape.
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