Shares of Snapchat parent company Snap surged in Friday trading after the social media company posted its first profit ever.
The company reported a fourth-quarter profit of $22.6 million, up from a $113 million loss during the same period last year.
For the quarter, Snap reported $1.3 billion in revenue, up 42% from the previous year. The company also reported 319 million daily active users, an increase of 20%.
Shares of Snap jumped more than 40% as the markets opened on Friday, a stark contrast to Facebook parent Meta, which saw shares plunge after reporting the first loss of users ever on Facebook.
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Facebook cited competition such as TikTok for the decline.
"Snapchat is clearly not as prone to the ‘TikTok effect’ as Meta, with strong daily active user growth in all regions, including North America," said Insider Intelligence analyst Jasmine Enberg.
However, trading at $35.87 as of Friday morning, Snap is well off its 52-week high of $83.11 set in September.
Meta's tumble sent other social media stocks plunging including Twitter and Pinterest.
The Associated Press contributed to this report. Follow Brett Molina on Twitter: @brettmolina23.
