Wall Street is abuzz after Snap's latest financial results, including the company's notable uptick in user activity.
Snap reported better-than-expected December-quarter daily active user growth on Tuesday as well as an acceleration in advertising revenue. That came as a relief for some analysts, who feared Snap's first three quarters of wobbly earnings could make for another lackluster report.
Snap shares rocketed 48 percent higher Wednesday through the close.
Still, some analysts weren't convinced and voiced their concerns to clients overnight.
Here is what the analysts said about Snap's earnings.
1) Evercore ISI
"Snap's ad revenue reaccelerated in the fourth quarter as a result of strong seasonal trends for branded advertising, demand for new ad formats, as well as steadily improving user trends ... Given the strong results and a clear step forward for Snap's ad business, we are upgrading our rating to in-line from underperform."
2) J.P. Morgan
"We are more optimistic on Snap's redesign, which will fully roll-out in the first quarter. Snap's new app redesign—more clearly separating social from media—has been pushed to 40 million users (of 187 million daily active users) with the remainder to come in the first quarter."
"Snap checked all the boxes you'd want if you were trying to re-build a bull case. The retention rate of new Android users improved as did the percent of net daily active user additions from Android."
4) Susquehanna Financial Group
"While the fourth quarter cleared a low bar, we remain cautious on Snap's forward prospects. A tough competitive landscape, saturated core demographic, and lackluster ad products create a difficult backdrop. Meanwhile, checks suggest Snap will once again have to fight for experimental allocations, while continuing to suffer high customer churn, particularly with larger advertisers."
5) Piper Jaffray
"We are staying neutral, but believe the first-quarter revenue commentary from management is very conservative and therefore have a positive near-term bias on Snap. Longer-term, we believe it is premature to declare Snap's structural headwinds solved, but further signs of user engagement durability and routes to monetization could warrant upside."
"Snap surpassed Street expectations for the first time as a public company during the seasonally strong fourth quarter. We do not see a material change to our thesis on the name, and think there continue to be questions on the overall trajectory of the business."