Exceeding expectations in the earnings report for more than the second quarter, Snap shares rose after trading on Thursday night and opened 18% higher on Friday than the previous day’s closing price. On Friday at 13.30 ET had risen 24%.
Property of the founders Evan Spiegel and Bobby Murphy increased by more than $ 2 billion. Spiegel, who is the CEO, owns 13% of the social media company; his net worth rose $ 2.8 billion on Friday afternoon. Chief Technology Officer Murphy owns 15%, raising his net worth by $ 3.1 billion.
As an early indicator of how digital advertising is doing on social media platforms, Snap’s surprise results also cheered competitors on. Facebook shares rose 7% on Friday afternoon and rose Mark Zuckerbergassets of nearly $ 8 billion. Facebook will report quarterly results next week. Correspondingly, Pinterest shares rose 6% and Twitter shares rose 5%, creating more modest bumps in net worth for likes Ben Silbermann (up to $ 220 million, $ 4.4 billion) and Jack Dorsey (up to $ 150 million, $ 14.7 billion).
Now trading at a record high, Snap’s shares reflect the strong quarterly results that Spiegel delivered to investors on Thursday. April-June revenue was the company’s best at $ 982 million, more than double the same period in 2020. Snap also reduced net losses by more than half from the same quarter in 2020 to $ 152 million from $ 326 million, while the user grew. base by 23% to 293 million people.
The snap that disconnected users in 2018 is restored its innovative advantage thanks in part for emphasizing the highlighted reality (AR). Today, it sees itself as a “camera company” and says more than 200 million users use its AR features – often accompanied by camera filters that distort a person’s face or feature in the environment – every day. The next step for the technology: let users shop virtually through Snapchat and try on clothing with AR. “Brands really had to find a replacement for shopping malls and showrooms,” said Snap business director Jeremi Gorman on Thursday during a results call.
Spiegel and Murphy founded the company as Snapchat in 2011 after a meeting at Stanford University where they were students. They changed their name to Snap in 2016 and announced the company the following year, when they founded the Snap Foundation, a non-profit charity to which they promised to donate 13 million shares in their lifetime. Murphy has donated 287,000 shares to charity this year; Spiegel has issued 1.6 million shares as requested by the Securities and Exchange Commission. However, it is unclear how many of these shares went to the Snap Foundation – Spiegel, for example, also has its own charity vehicle, the Spiegel Family Fund, which focuses on art, education, housing and human rights with an emphasis in California.