Snap Inc. shares swung higher into positive territory Tuesday after the social-media company’s executives detailed their plans for Snapchat in an investor presentation.
shares, which had been trading down 7% at midday amid a tech selloff, rallied to a gain suddenly amid the presentation. At last check, shares were up 5.5%.
The share-price surge coincided with reports that Snap’s Senior Product Director, Peter Sellis, told investors the company was poised for 50% or more annual revenue growth over multiple years. Earlier in the month, Snap reported annual revenue growth of 46% to $2.51 billion in 2020, following 45% growth in 2019, 43% in 2018, and 104% in 2017.
Analysts surveyed by FactSet expect Snap’s revenue to grow 48% in 2021 to $3.72 billion. Analysts expect revenue of $5.11 billion in 2022, or a 37% rise from expected 2021 sales.
Snap shares are up 303% over the past 12 months, compared with a 16% rise in the S&P 500 index
and a 39% gain on the tech-heavy Nasdaq Composite Index