Feb 7 (Reuters) - Shares of Snapchat owner Snap Inc surged 35 percent on Wednesday after the company reported its first user growth since going public in 2017, sign that a redesign of its messaging app is taking hold in its battle with Facebook 's Instagram.
"Snap made significant progress on redesigning the user experience, with some proof points around engagement," Canaccord Genuity Analyst Michael Graham said.
CEO Evan Spiegel said the redesigned app will fully roll out in the current quarter.
"Advertiser count on auction doubling sequentially, which speaks to the company's efforts to date to evangelize the platform," Credit Suisse analyst Stephen Ju said.
"A good quarter doesn't change our fundamental view that Snap has its work cut out to continue to deserve a premium multiple," Jefferies analyst Brent Thill said.
Most analysts still view Facebook as better positioned to corner a bigger share of advertisers than Snapchat.
Only five of 36 brokerages rate Snap as "buy" or higher, 18 "hold" and 13 "sell" or lower.
- Ahead of global rollout, the Snapchat redesign could already be sparking growthDigital Trends
- Snap's Q4 earnings blew everyone away, but here's why Wall Street remains ...Business Insider
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- Did You Know That Snapchat Added A Do Not Disturb Feature? Well, Now You DoTech Times
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- Snap Shares Rocket Higher as Users Return to Messaging App After Big RedesignTheStreet.com
- Snap Revenue Surges on User Growth, Advertising GainsBloomberg
- Snap back above IPO price for first time since JulyFinancial Times
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