Welcome to "#SocialStocks," The Fly's weekly recap of Wall Street's reactions to social media stock news.
FACEBOOK ANNOUNCES ANOTHER PASSWORD BREACH: On Thursday, April 18, Facebook (FB) announced an update to a blog post from March titled "Keeping Passwords Secure," saying that since the original post was published it discovered additional logs of Instagram passwords being stored in a readable format. "We now estimate that this issue impacted millions of Instagram users," the company said. "We will be notifying these users as we did the others. Our investigation has determined that these stored passwords were not internally abused or improperly accessed."
TWITTER, SNAP POST BETTER-THAN-EXPECTED QUARTERLY RESULTS: On April 23, Twitter (TWTR) reported Q1 EPS of 37c and Q1 revenue of $787M, against analyst expectations of 15c and $775.23M, respectively. Twitter also reported Q1 average monetizable daily active users, or mDAU, of 134M, compared to 120M in the same period of the previous year and 126M in the previous quarter. Snap Inc. (SNAP) reported Q1 EPS of (10c) and Q1 revenue of $320.43M, against analyst expectations of (12c) and $306.48M, respectively. Snap also reported Q1 DAUs of 190M in Q1, compared to 186M in Q4 of 2018 and 191M in Q1 of 2018.
PINTEREST IPO: On April 17, Pinterest (PINS) priced its 75M share initial public offering at $19.00. On April 18, the IPO opened at $23.75. Barron’s writer Al Root noted in this week’s edition of Barron’s that Pinterest priced its IPO at $19 per share, above the expected range of $15-$17, and the stock opened up 25% from the offering price, and all the enthusiasm is good news for the company. The 25% surge is a strong return, but investors should beware of the headline "IPO soars in its debut" because it is actually the investors making that headline possible, he noted, adding that it "just seems prudent" to wait.
Keywords: Instagram, passwords, password breach, data breach, Snapchat, earnings, quarterly results, IPO, initial public offering, Barron's, Al Root, DAU, Daily Active Users