Snap shares rocket as much as 57% on first-ever quarterly net profit
Summary
The report comes a day after Facebook parent Meta delivered disappointing guidance for the first quarter that dragged down several social media stocks with it. Snap has to contend with similar headwinds as Meta, which warned that it anticipates a $10 billion revenue hit in 2022 resulting from Apples privacy changes on iOS that make it harder to target consumers with advertiser content. But Snaps direct response advertising businesses experienced a recovery from the iOS changes "quicker than we anticipated," according to prepared remarks for CFO Derek Anderson for the companys analyst call. Still, Anderson said Snap still thinks "it will take at least a couple more quarters for our advertising partners to build full confidence in our new measurement solutions." Chief Business Officer Jeremi Gorman said in her prepared remarks that the sales team is helping advertisers transition through the changes.