Evan Spiegel, CEO and co-founder of Snap Inc.
Adam Galica | CNBC
Shares of Snapchat parent company Snap rose on Thursday after Bank of America said a recent spike in app downloads will drive better revenue results for the company’s upcoming second-quarter earnings.
“In May, Snap’s ‘gender-face-swap’ filter went viral and SnapKit app ‘Yolo’ reached number 1 on the iOS download charts, and 3rd party Snap app data in 2Q suggests downloads were near record levels,” Bank of America analyst Justin Post said in a note to investors. “Overall we anticipate improving user trends and revenue upside in 2Q, though we expect Snap to remain conservative in its outlook.”
Snap rose about 2% to $15.57 a share on Thursday. The stock is up a staggering 182% since the beginning of the year, as it hit a 52-week low of $4.99 a share in December. However, Snap remains well below its 2017 IPO price of $24 a share.
Bank of America increased its price target to $17 from $12 on Snap shares but stuck to its…