Meta’s performance caused tech stocks to slump this week, but Snap and Pinterest bounced back after strong earnings reports.
Social media companies Snap and Pinterest have both reported high revenue growth for 2021, causing their share prices to soar.
This followed the plunge tech stocks took after Meta reported lower-than-expected profits and a first-time decline in Facebook users on Wednesday (2 February). The company’s earnings report led to the biggest one-day stock drop in history for a US company, with more than $230bn in market value lost, according to the Guardian.
Meta’s performance caused a cascade of stock dips across tech companies, with Pinterest suffering a 10pc drop and Snap down 23.6pc yesterday (3 February), according to CNBC. However, the latest financial updates from these two companies have caused them to bounce back from the slump.
Snap beat analyst estimates in fourth-quarter earnings, revenue and user growth, causing its stock to soar as much as 62pc. The company reported its first quarterly profit on the back of revenue of $1.3bn in the fourth quarter of 2021, a 42pc increase year on year. Its full-year revenue grew 64pc to $4.1bn.
Daily active users on Snapchat rose to 319m in the last quarter, up 20pc compared to the same period last year.
Pinterest, meanwhile, reported a decline of 6pc in its global monthly active users. But the company achieved revenue of $2.57bn for 2021, a 52pc increase compared to the year before, pushing it to its first full-year profit.
Following the announcement, Pinterest stock increased by around 28pc, according to CNBC.
“We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform,” Pinterest CEO Ben Silbermann said.
“As we look ahead to 2022, we plan to further invest in our business as we scale the distribution of Idea Pins through our creator-led content efforts and enhance our core Pinner experience and shopping to make Pinterest the destination for inspiration and action on the internet.”
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