What you need to know
- Snapchat says that it has overcome Apple's privacy changes in iOS faster than it anticipated.
- The company's share price fell by 23% following news that Facebook was struggling with the iOS 14 App Tracking Transparency overhaul.
- Snapchat's more positive outlook has sent shares soaring 50%.
Snapchat's share price is up almost 50% and has climbed to as high as 62% in pre-market trading after the company revealed it had overcome Apple's iOS 14 tracking changes quicker than anticipated.
As noted by CNBC:
Snap reported its first quarterly net profit on Thursday, and beat analyst estimates for the fourth quarter on earnings, revenue, and user growth.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 fell 23.6% Thursday prior to its own earnings announcement but popped as much as 62% after hours, before settling up about 52%.
Snap provided Q1 guidance more optimistic than that of analysts, sending its stock through the roof ahead of the bell on Friday.
Earlier this week Facebook said that it was struggling to cope with the "headwinds" of changes made to iOS 14 last year and that it expected to lose $10 billion in revenue as a result.
Stunning insight yesterday revealed that Apple's changes, made in April 2021, had wiped $278 billion of market value from four companies including Snap since they were introduced. The Snapchat developer, alongside Pinterest and Twitter, had all seen their values fall by around 50% over the last year.
Apple continues to tout privacy as one of its foremost concerns and one of the best iPhone features it offers.
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