Did Snap Actually Outperform Meta Platforms in This Important Metric?
Snap (NYSE: SNAP) makes some money each year from its Spectacles camera glasses. Meta Platforms (NASDAQ: META) generates some revenue each year from its business segment that focuses on the metaverse. However, both Snap and Meta Platforms generate the vast majority of their revenue from advertising on their social media platforms. They are the same that way.
Its details like this about how these social media giants generate revenue that can influence investors' enthusiasm for each stock. As of Feb. 7, Meta's stock price was up 58% year to date and outpacing Snap stock's 35% gain. One assumption investors could take away from this difference in stock price performance is that Meta's recent financial report was better than Snap's. However, there's one important metric common to the two reports that suggest such an assumption might be misleading.
On Feb. 1, Meta Platforms reported financial results for the fourth quarter of 2022 and the market loved it. Monthly active users across the company's platforms were up 4% year over year. And ad revenue in the U.S. and Canada was flat compared to the prior-year quarter, which, given the slowdown in advertising spend, was encouraging.
Source Fool.com
