Shares of Snap (NYSE: SNAP) are up just over 15%, or $1.13 a share. All after the company reported strong revenue that was above expectations, it said it would buy back $500 million worth of stock, and noted that Perplexity AI will pay it $400 million to integrate its AI search features into Snap. Revenue of $1.51 billion was above estimates of $1.49 billion. Global daily active users jumped to 477 million, as compared to estimates of 476 million.
The growth came from both major segments. Companion Animal Group (CAG) diagnostics recurring revenue grew 11% reported and 10% organically. Laboratory and Professional Services (LPS) revenue climbed 17% reported and 14% organically. CEO Jay Mazelsky highlighted the impact of new product launches, specifically IDEXX Cancer Dx, new Catalyst specialty tests for Pancreatic Lipase and Cortisol, and inVue Dx, which he described as delivering "powerful new diagnostic capabilities" with "strong execution and global customer adoption."
Such valuations are almost unheard of when you discount smaller companies. In the same vein, expanding the earnings multiple from here is going to be an uphill battle. Palantir managed to fight its way upwards by posting one stellar earnings beat after another. In Q2 2024, it beat revenue estimates by 3.99%, with a 3.17% beat the next quarter, and a stellar 6.65% beat to finish off the year.