For well over a year, investors could count on shares of (NYSE: SNAP) dropping after the company reported earnings. But it snapped that streak today after it reported financial results for the first quarter of 2024, and as of 12:30 p.m. ET on Friday, the stock was up a stunning 29%.

Going into the quarter, Snap had guided for daily active users (DAUs) of 420 million and revenue of $1.1 billion at most. But in the first quarter, the company pleasantly surprised with 422 million DAUs and revenue of $1.2 billion, which was up 21% year over year. That's its best growth rate in over two years.

Snap is benefiting from a couple of things right now. First, its subscription service Snapchat+ reached 9 million users in the first quarter, up from 7 million at the end of 2023. Moreover, ad rates (effective cost per thousand views) were up 8% year over year, reversing several quarters of declines.

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Source Fool.com