Strong results from Pinterest and Snap spur recovery of congested social media stocks

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People are seen on Wall Street in front of the New York Stock Exchange (NYSE) in New York, U.S., March 19, 2021. REUTERS/Brendan McDermid/File Photo

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Feb 3 (Reuters) – Shares of Snap (SNAP.N) and Pinterest (PINS.N) jumped in extended trading on Thursday after strong quarterly reports, and Twitter also surged, marking a massive reversal from a slump of these social media stocks earlier today following a dismal forecast from Meta Platforms (FB.O).

Snap soared 62% after the company reported better-than-expected user growth in the fourth quarter and delivered an outlook that beat analysts’ estimates. Read more

Also after the bell, Pinterest soared 25% after its quarterly revenue beat estimates as retailers splurged on advertising during the holiday quarter. Read more

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These two late-day rallies more than offset double-digit percentage losses in Thursday’s trading session.

Shares of Twitter (TWTR.N), which reports quarterly earnings on Feb. 10, jumped 10% on reports from Snap and Pinterest. It had lost 5.6% in Thursday’s session.

Shares of Meta Platforms rebounded 1.6% after the social media heavyweight plunged 26% during the day’s trading session. Read more

“All the people who sold Facebook…where are you going with that money? You’re going to similar companies that haven’t reported the same type of issue,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

Fidelity’s online retail brokerage customers were net buyers of Snap stock earlier Thursday before the company’s report, according to data from the company’s website.

Adding more positive sentiment to the U.S. stock market after the Nasdaq (.IXIC) fell 3.7% on Thursday, Amazon jumped 16% after reporting quarterly earnings that beat analysts’ expectations. This added about $245 billion to Amazon’s stock market value. Read more

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Reporting by Noel Randewich Editing by Marguerita Choy

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