Snap and Pinterest Rebound After Meta Shock
Snap and Pinterest have both rallied, after their stock plummeted in the wake of Meta’s historical wipeout.
After Meta’s stock dropped by over 26 per cent following a lacklustre forecast and reported stalled growth, Snap dropped 24 per cent, closing at its lowest figure since September, 2020. The company had shed close to 70 per cent, following September highs.
Pinterest sank 10 per cent, a more modest drop but still enough to see it close at its lowest since July 2020.
Snap and Pinterest both, however, rebounded in late trading, after both companies allied fears they would follow Facebook into the abyss.
Snap’s December quarter sales jumped 42 per cent to $US1.3 billion, smashing Wall Street estimates of $US1.2 billion. Snapchat had 319 million daily active users throughout the quarter, beating Wall Street’s 316 million prediction.
Snap jumped 43 per cent in extended trading.
Pinterest also climbed 29 per cent, after posting adjusted earnings of 49 cents, smashing the Wall Street estimate of 42 cents.