Snapchat shares rocket 50% as company touts iOS privacy change recovery

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What you need to know

  • Snapchat says that it has overcome Apple's privacy changes in iOS faster than it anticipated.
  • The company's share price fell by 23% following news that Facebook was struggling with the iOS 14 App Tracking Transparency overhaul.
  • Snapchat's more positive outlook has sent shares soaring 50%.

Snapchat's share price is up almost 50% and has climbed to as high as 62% in pre-market trading after the company revealed it had overcome Apple's iOS 14 tracking changes quicker than anticipated.

As noted by CNBC:

Snap reported its first quarterly net profit on Thursday, and beat analyst estimates for the fourth quarter on earnings, revenue, and user growth.The report comes a day after Facebook parent Meta delivered disappointing guidance for the first quarter that dragged down several social media stocks with it. Snap fell 23.6% Thursday prior to its own earnings announcement but popped as much as 62% after hours, before settling up about 52%.

Snap provided Q1 guidance more optimistic than that of analysts, sending its stock through the roof ahead of the bell on Friday.

Earlier this week Facebook said that it was struggling to cope with the "headwinds" of changes made to iOS 14 last year and that it expected to lose $10 billion in revenue as a result.

Stunning insight yesterday revealed that Apple's changes, made in April 2021, had wiped $278 billion of market value from four companies including Snap since they were introduced. The Snapchat developer, alongside Pinterest and Twitter, had all seen their values fall by around 50% over the last year.

Apple continues to tout privacy as one of its foremost concerns and one of the best iPhone features it offers.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9