Snap (NYSE:SNAP) stock rose 4.96% on March 11. Shares have surged a stunning 72% in 2019 so far. However, the stock is still down 46% year over year.
Snap released its fourth-quarter and full-year results for 2018 on February 5. The company made up ground in key areas in the fourth quarter, but still reported a significant loss. In Q4 2018 Free cash flow rose by $49 million year-over-year to a $149 million loss. Revenue rose 36% year-over-year to a record $390 million in the final quarter of 2018.
For the full-year revenue increased 43% to $1.18 billion. Snap’s app adjustments have not been able to give it the jolt it wants to see in Daily Active Users (DAUs). DAUs were 186 million in Q4 2018, which was mostly flat across Q3 and Q2. Snap has seen some growth after its advertising push, but there is much work to do. To add to that, less than 30% of US marketers use Snapchat.
The app was once again outshone by its rivals like the Facebook-owned Instagram and WhatsApp in terms of DAUs. There is little hope that Snap will be able to rival either anytime soon, but it aims to make progress by reaching more Android users.
After plunging into oversold territory for much of 2018, Snap has been comfortably overbought since early February. The stock last boasted an RSI of 67, which is just outside of being technically overbought.
