By Kuldip K. Ambastha
Snap Inc. (SNAP) stood out this week for positive reasons. On Wednesday, April 22, 2020, the stock had an astounding 36.7% return for the day. This return was driven by the company’s strong 1Q2020 results. Wall Street’s quarterly revenue expectations were surpassed. Snapchat has 229 million average daily active users as of the end of 1Q2020, an increase of 11 million for the quarter. Wall Street analysts like the company’s long-term prospects. Due to the strong 1Q2020 results, the company was able to roll out plans for a $750 million privately placed debt offering and also an option for investors to obtain up to $112.5 million in additional convertible securities. Because of the global coronavirus pandemic causing massive uncertainty for the future of the company, 2Q2020 guidance was not given.
Keywords – Snap Inc., Snap, SNAP, Snapchat, Evan Spiegel, Bobby Murphy, Reggie Brown, Lara Sweet, Derek Andersen, Jeremi Gorman, Jared Grusd, Rebecca Morrow, Michael O’Sullivan, 1Q2020, 2Q2020, quarter, quarterly, guidance, users, Wall Street, debt offering, convertible securities, private placement, coronavirus, COVID-19, pandemic.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SNAP.
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