Snap upgraded at Raymond James, stock up 25% after earnings
Raymond James analyst Aaron Kessler upgraded Snap Inc. shares to market perform from underperform on Wednesday, after the social-media company boosted its average revenue per user and said that it sees profitability as being "within reach." Kessler cited a stabilization in Snap's daily-active-user count in the latest quarter as one reason why he's moved past his bearish stance: Snap had been losing users prior to this quarter, and Wall Street expected another decline for the holiday period. He's also encouraged by Snap's "solid ad growth," though his enthusiasm for Snap's future is somewhat muted, as the company faces competition from Facebook Inc.'s Instagram. As of Tuesday's close, Snap shares had fallen 0.7% over the past three months, as the S&P 500 had dropped 0.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.