Snap Extends Gain as No. 1 Internet Stock This Year
(Bloomberg) -- Snap Inc. rose, extending its lead as the best internet stock of the year, as Nomura Instinet predicted that new users of its social-messaging app may double the company’s own forecast.
Downloads for Snapchat continued to show strong growth in August, rising 21% from a year ago, according to a monthly data tracker by Nomura. At this rate, analyst Mark Kelley said Snap will add between 5.5 million and 10 million users this quarter, above a range of 2 million to 4 million projected by the company.
Snap climbed as much as 3.9% as of 12:55 p.m. in New York, bucking a broad retreat in technology shares. Up in all but one month, the stock has surged 197% this year, making it the best performer in the Nasdaq Internet Index.
The outperformance comes as the company continues to tap teenagers’ growing love for augmented reality. It’s a turnaround from last year, when the stock tumbled amid some leadership changes and a disastrous redesign that alienated users.
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