Why Shares of Snap Inc. Popped Today

Shares of Snap Inc. (NYSE: SNAP) rose on Tuesday, potentially driven higher by a report suggesting that Facebook (NASDAQ: FB) is losing appeal among younger users, and that Snapchat could benefit. Volatility may also be a factor: Shares of Snap have plummeted since its IPO. At 2:35 p.m. EDT, Snap stock was up about 6%.

eMarketer released its social-network usage forecast on Tuesday, predicting that Facebook will see its user growth slow in the U.S. and the U.K., with Facebook-owned Instagram and Snapchat expected to grow at a double-digit rate. eMarketer sees Facebook's total monthly users growing by 2.4% this year in the U.S., with Snapchat usage expected to grow by 25.8%.

Image source: Snap Inc.

Source: Fool.com