Written by Brenda Nakalema

Meta and Pinterest Stock React After User Growth at Snap Jumps 18%

Shares of social media giants Meta Platforms and Pinterest presented mixed results following the slight rise in daily active users …

Shares of social media giants Meta Platforms and Pinterest presented mixed results following the slight rise in daily active users of Snap.

Meta (ticker: FB) gained 1.1% ending trading at $190.18 on early Friday. On the other hand, Pinterest (ticker: PINS) was down 1.6% to $19.90 but had climbed more than 2% in after-hours trading on Thursday following Snap’s results.

Snap (ticker: SNAP) recorded an amazing 18% jump in daily active users in the first quarter, landing at 332 million a year earlier. Analyst expectations had been set at 331 million. The stock has been very volatile, making moves in and out of positive territory after the company reported revenue below forecasts. Snap previously reported revenue of $1.06 billion in the quarter, a slight dip from estimates of $1.07 billion.

Snap CEO Evan Spiegel said the first quarter “proved more challenging than we expected, and thankfully our team was able to make important progress towards our goals despite the increased volatility in the operating environment.”

The company announced its expectation of revenue growth between 20% and 25% for the second quarter, still below analysts’ forecasts of 28% growth.

Snap also pointed out that “ongoing platform-related headwinds” presented massive challenges during the quarter. The company stock has endured massive hits from changes to Apple’s (ticker: AAPL) operating system for mobile devices.

“In addition, these ongoing platform-related headwinds, supply-chain shortages and labour disruptions, rising inflation and geopolitical turmoil are presenting challenges for a wider array of industry verticals than was experienced in the prior quarter,” said Jeremi Ann Gorman, Chief business officer.

Analysts at RBC Capital Markets commented that Snap’s first-quarter report was a reflection of “worsening macro headwinds but with some positive green shoots on a forward-looking basis.”

RBC also pointed out that Snap “sets up as an acceleration narrative where Apple signal issues seem to be mostly at bay.”

RBC gave the stock a sector perform rating, with a price target of $35, a drop from $42.