Social media companies Snap and Pinterest have both reported high revenue growth for 2021, causing their share prices to soar.

This follows the plunge tech stocks took after Meta reported lower-than-expected profits and a first-time decline in daily Facebook users on Wednesday 2 February.

The company’s earnings report – the first since it changed its name last year – led to the biggest one-day loss in stock in history for a US company with more than $230bn lost, the Guardian reports.

Meta’s losses caused a cascade of stock dips across similar companies, with Pinterest suffering a 10pc drop while Snap’s stocks fell 23.6pc yesterday (3 February), according to CNBC. However, the latest financial year reports have caused them to bounce back from the slump.

Snap’s financial report beat analyst estimates in earnings, revenue and user growth, causing a massive comeback in its stock price. Following the announcement, Snap’s stock soared as much as 62pc before stabilising at around 52pc, CNBC reports.

Snap reported net profit of $1.3bn for its fourth quarter of 2021, a 42pc increase year-on-year, while its revenue for the full year grew 64pc to $4.1bn.

The company’s daily active users on Snapchat rose to 319m, marking a 20pc or more increase in this area for five consecutive quarters

Pinterest, meanwhile, reported a decline of 6pc in its global monthly active for the year. Despite this setback, the company reported revenue of $2.57bn for 2021, a 52pc increase compared to the year before. Its earnings before factoring in elements such as tax and depreciation was more than $814m, a 167pc increase. Following the announcement, Pinterest stock increased by around 28pc, according to CNBC.

“We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform,” Pinterest CEO Ben Silbermann said. “As we look ahead to 2022, we plan to further invest in our business as we scale the distribution of Idea Pins through our creator-led content efforts and enhance our core Pinner experience and shopping to make Pinterest the destination for inspiration and action on the internet.”

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