Snap may no longer be the laughing stock of the New York Stock Exchange.
On the heels of renewed user growth and an earnings beat, Snap closed Wednesday with a share price at $17.60, up 18.68% for the day, giving the company its first close above its $17 IPO debut price since March of last year.
After a highly anticipated debut sent Snap’s share price climbing 44% on its first day of trading in March of 2017, the company’s stock soon plummeted as its first earnings report detailed slowed user growth that would continue for the next several periods. It was only a few months later that the company’s stock dipped below its $17 debut share price, a number it briefly rose above in early 2018 before sinking to an all-time low of $4.82 in late December.
The company’s earnings report yesterday may signify a turning point for the social media company that has reportedly struggled to retain executive and engineering talent in recent months in the face of rapidly declining investor enthusiasm. In the company’s Q2 earnings report, Snap executives highlighted their strengths as they highlighted a 13 million quarter-over-quarter increase in daily active users and a command over the 18-24 age bracket.
The key to maintaining that growth will be whether Snap can continue to deliver viral hits that bring users to the platform, like its augmented reality lenses that the company said contributed 7-9 million of the new users that came aboard last quarter.
Wednesday’s rally will give Snap more breathing room to pursue its original content strategy and its more ambitious efforts, like its game development and augmented reality platforms.