Why Snap Stock Is Surging Wednesday Afternoon

Snap Inc (NYSE: SNAP) shares are trading higher Wednesday after an internal memo showed the company aims to reach $6 billion in revenue and 450 million users by the end of 2023.

Snap Inc (NYSE:SNAP) shares are trading higher Wednesday after an internal memo showed the company aims to reach $6 billion in revenue and 450 million users by the end of 2023.

According to an internal memo obtained by The Verge, Snap CEO Evan Spiegel told employees that the company aims to grow Snapchat’s user base to 450 million by the end of next year, representing an increase of 30%. Snap also aims to increase revenue 20% year-over-year to $6 billion in 2023. 

Approximately $350 million of said revenue is expected to come from the recently announced paid subscriptions that allow users to access additional features. It’s currently on track to hit 4 million subscribers by the end of the year.

“We saw challenges on the horizon, and hedged our bets accordingly, but still got punched in the face hard by 2022’s new economic reality … We have decisively entered a new era, and we must adapt and overcome to succeed in this new reality,” Spiegel wrote in the memo to employees.

See Also: Looking At Snap’s Recent Whale Trades

SNAP Price Action: Snap has a 52-week high of $47.71 and a 52-week low of $9.34.

The stock was up 5.34% at $11.36 at time of publication, according to Benzinga Pro.

Photo: Souvik Banerjee from Pixabay.

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