Snap shares soar 60% on first profitable quarter

marketwatch.com

6 points·paulpauper··3 comments

I have never seen anything like this. How does a $40 billion company go up 50% on earnings? I can understand a $400 million company doing that, but $40 billion? It's as if everyone got it wrong. Imagine buying calls today for pennies and selling for dollars tomorrow. Maybe I can try to backtest a system that does this, but you would have a lot of misses. But all you need are a few winners. This is how people on Reddit's wallstreetbets make so much money. They are doing just that. Between snapchat, amazon, and Facebook, multi-billion dollar stocks have more volatility than penny stocks.

Just check the SNAP stock value for the past 6 months[1] and you'll see that it had lost roughly 70% of its stock value.

With today's earning announcement, it has just recovered some of those lost market value. Still, with this positive news (i.e. about 60% increase in stock value, post earning announcement), they're around 50% down from its peak (which was just in the recent past, less than 6 months ago).

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[1]- https://finance.yahoo.com/chart/SNAP

> This is how people on Reddit's wallstreetbets make so much money. They are doing just that.

Given their moves on Snap after the disappointing results from Meta, not many frequent 'gain' posts on SNAP and the surprised response from wsb on the earnings results, it's clear that the majority of them purchased puts.

Maybe that's why Amazon was much more of an unsurprising bet for most speculators than Snap was, which explains this whole confusion. 60% up sounds like a good deal for anyone who just bought the dip in shares before market close.

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