Stocks of Snap are soaring after a forecast by eMarketer indicated the company is attracting teen users. On Tuesday, Snap was up by 6%, after a survey on youngsters showed they prefer Snap over Facebook.
According to this survey, teenagers in the age range of 12-17 are shifting from Facebook to Snapchat and Instagram. If this is the trend, Snapchat will race ahead of Facebook and Instagram when it comes to users in this age group. eMarketer predicted the company will grow its user base at a rate of 25.8% in the year 2017.
On Monday, the stock price of Snap fell slightly breaking its five-day winning streak.
The shares were going berserk at a rate of 18.5%.
It finally looks like good news for the company as it seemed to perform well in the market and broke free from the clutches of the lockup expiration shadow. The lockups were a preventive measure designed to prevent the insiders from flooding the market with shares during its IPO. However, over 1.2 billion shares of Snap were unlocked last month and since then the company’s stock price has been at the bottom level.
Snap is currently trading at $14.42 as of Tuesday afternoon. This price is 15% less than the price at time of IPO, which was $17.
Facebook still remains the largest social media platform in the world.