Snap stock swings higher during investor presentation

Snap stock swings higher during investor presentation

Snap stock swings higher during investor presentation

Snap Inc. shares swung higher into positive territory Tuesday after the social-media company’s executives detailed their plans for Snapchat in an investor presentation.

Snap SNAP, +11.02% shares, which had been trading down 7% at midday amid a tech selloff, rallied to a gain suddenly amid the presentation. At last check, shares were up 5.5%.

The share-price surge coincided with reports that Snap’s senior product director, Peter Sellis, told investors the company was poised for 50% or more annual revenue growth over multiple years. Earlier in the month, Snap reported annual revenue growth of 46% to $2.51 billion in 2020, following 45% growth in 2019, 43% in 2018, and 104% in 2017.

Analysts surveyed by FactSet expect Snap’s revenue to grow 48% in 2021 to $3.72 billion. Analysts expect revenue of $5.11 billion in 2022, or a 37% rise from expected 2021 sales.

Snap shares are up 303% over the past 12 months, compared with a 16% rise in the S&P 500 index SPX, +0.13%, and a 39% gain on the tech-heavy Nasdaq Composite Index COMP, -0.50%.