Are the Snap, Twitter results harbingers of coming tech beats?

Market Updates

Growthy results from Twitter and Snap whipped investors into a frenzy last week.

It all started with Snap.

The increasingly popular camera-centric social media company reported runaway revenue growth in its second quarter, revealing Q2 revenues of $982 million, implying a gain of 116% year-on-year.

Snap’s net losses improved and so did earnings (EBITDA). The stock surged 23% in response, hitting an all-time high of $77 per share. At those levels Snap has a market capitalisation of $122 billion.

Twitter followed suit, posting Q2 advertising revenues of $1.05 billion, implying an increase of 87% year-on-year. The stock also popped, gaining 3% on Friday.

That fervent attention on Snap and Twitter was short-lived, as investors quickly refocused on the broader implications of those blistering revenue numbers.

The key message was that advertising spend is back and in a big way.

The natural reaction from investors hunting for a parallel trade: Facebook and Google both had their share prices bid higher, gaining 5% and 3%, respectively, last Friday.

That move from investors suggests that the market believes those tech giants are poised to hand down a similar set of Snap-style beats this week.

Google Q2 (Tuesday, US time)

Before Google’s second quarter earnings this Tuesday, analysts expect the search giant to report quarterly revenues of $56.03 billion against earnings per share (EPS) of $19.14 per share, according to Yahoo Finance.

Google has been on a hot streak recently, with the stock up 54% year-to-date.

Facebook Q2 (Wednesday, US time)

Like Google, Facebook has seen its share price rally firmly in the last six months, gaining 33% in that period. Analysts are equally bullish, with the stock currently commanding a Buy rating, on average.

Heading into Wednesday’s Q2, the sell-side expects Facebook to report earnings (EPS) of $3.02 per share and revenue of $27.82 billion, according to Yahoo Finance.

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