Snap Inc (NYSE:SNAP) stock is soaring this morning, up 16% at $8.47 after the Snapchat parent posted a third-quarter revenue beat and revealed a deal with Perplexity AI worth $400 million. Earnings came in line with expectations at 6 cents per share, while revenue of $1.51 billion topped estimates.
Several bull notes have been handed out as well. No fewer than 11 analysts have hiked their price targets, with the highest to $10 from Piper Sandler, Bernstein, and Wells Fargo. There is still room for upgrades, however, with 32 of the 38 covering brokerages sporting a "hold" or worse rating.
Today's gap higher has SNAP headed for its best daily performance since April 9. The stock recently pulled back near the $7 floor, which moved in as support in April, August, and September. Year to date, the equity is down 23%.
Options have been hot in response to today's news, with 214,000 calls and 67,000 puts across the tape so far, 6 times the average intraday pace. Most popular is the weekly 11/7 9-strike call, followed by the 7-strike put from the same series.
