Record Hunt on Wall Street – Snap powers social media stocks


Strong quarterly figures from the “old economy” as well as from the new tech and social media world around Twitter, Snap & Co. fueled the share rally in New York on Friday. The Dow Jones Industrial, the technology-heavy Nasdaq 100 and the market-wide S&P 500 soared to record highs. The Dow only broke the record in the last few minutes of trading.

“The quarterly reports continue to surprise in a positive way,” wrote analyst Craig Erlam of broker Oanda. Investors are enthusiastic about the company’s figures and are optimistic about the coming weeks.

The Dow was up 0.68 percent to 35,061.55 points. On a weekly basis, the index posted a gain of a good 1 percent. The S&P 500 rose 1.01 percent to 4411.79 points. For the Nasdaq 100 it went a little further up with 1.15 percent to 15,111.79 points.

The shares of Snap caused a sensation: They shot by almost 24 percent to their highest level since the IPO more than four years ago. The technology and social media company recently found many new followers with new offers. Credit Suisse analyst Stephen Ju said the company is only at the beginning of a ten-year upward cycle.

The short message service Twitter had recently benefited significantly from advertisers. Revenue in the second quarter rose 74 percent year over year to just under $ 1.2 billion. The shares went up by a good three percent. Analyst Doug Anmuth from the investment bank JPMorgan wrote that it is now paying off that the management has consistently set on turning the offers for the users into face value.

In view of the good news from Twitter and Snap, the prices of other industry giants such as the online photo service Pinterest and Facebook also rose strongly. Facebook rose 5.3 percent to a record high. Here Credit Suisse announced the highest price target currently on the market at $ 480. It gives the price further upside potential of almost 30 percent.

With American Express and Honeywell, two stocks from the Dow Jones index published quarterly reports and outlooks. These were well received in the market, the shares of American Express rose by 1.3 percent and also pulled the paper of the counterparty Visa up by 2 percent. Never before had American Express won so many new customers for the Nobel Platinum Card in one quarter.

The fly in the ointment was the news from Intel before the weekend. The chip giant expects the global semiconductor shortage to worsen in the coming months and last until 2023. On the stock exchange, the sales forecast for the current year was also disappointing. The price slipped 5.3 percent at the end of the Dow.


(tiw)

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