Snap Stock Is Surging Today: What's Going On?

Snap Inc SNAP shares are trading higher Wednesday after the company reported better-than-expected financial results for the third quarter.

• Q3 Revenue: $1.373 billion, versus estimates of $1.358 billion

• Q3 EPS: 8 cents, versus estimates of 5 cents

Total revenue was up 15% on a year-over-year basis. Daily active users grew 9% year-over-year to 443 million. The company ended the quarter with $3.2 billion in cash, cash equivalents and marketable securities.

"Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long-term growth opportunity,” said Evan Spiegel, CEO of Snap.

On the conference call following the earnings release, management said the company is focused on AI and AR initiatives to continue demonstrating leverage in Snap’s business and create a path towards “more and more meaningful adjusted EBITDA and eventually GAAP profitability over time.”

See Also: Meta Platforms Q3 Earnings Preview: AI In Focus With New Search Engine Plans, Analyst Says Company ‘Well Positioned’

Snap also announced that its board authorized a buyback of up to $500 million. The repurchase program was put in place to offset a portion of the dilution related to the issuance of restricted stock units to employees as part of Snap's compensation package.

Snap said it expects fourth-quarter revenue to be in the range of $1.51 billion to $1.56 billion versus estimates of $1.558 billion, according to Benzinga Pro.

Following the print, UBS analyst Lloyd Walmsley maintained Snap with a Neutral and raised the price target from $12 to $13. Benchmark analyst Mark Zgutowicz reiterated a Hold rating.

SNAP Price Action: Snap shares were up 14.6% at $12.48 at the time of publication Wednesday, according to Benzinga Pro.

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