Snap Stock Is Moving Higher After The Close: What's Going On?

Snap Inc (NYSE:SNAP) shares are trading higher in Wednesday’s after-hours session, in possible sympathy with Meta Platforms Inc (NASDAQ:META), which jumped on better-than-expected earnings results.

What Happened With META: Meta beat analyst estimates on the top and bottom lines for the sixth consecutive quarter when it reported second-quarter revenue of $39.07 billion and earnings per share of $5.16 after the bell.

Total revenues were up 22% on a year-over-year basis and ad impressions jumped 10% year-over-year, suggesting Meta’s aggressive AI spending is starting to show up in the results. Shares were up nearly 5% in extended trading at last check, per Benzinga Pro.

"We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year," said Mark Zuckerberg, founder and CEO of Meta.

"We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."

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Why It Matters For SNAP: Snap and Meta operate social media platforms and both companies generate significant revenue from advertising. The strong advertising results from Meta appear to be giving Snap shares a lift ahead of earnings.

Snap is scheduled to report its second-quarter financial results after the market close on Thursday. The company is expected to report earnings of 2 cents per share and revenue of $1.251 billion, according to analyst estimates from Benzinga Pro.

Benchmark analyst Mark Zgutowicz reiterated Snap with a Hold rating this week.

SNAP Price Action: Snap shares were up 4.28% after hours at $13.89 at the time of publication, according to Benzinga Pro.

Photo: Sergei Elagin/Shutterstock.