Snap (SNAP Quick QuoteSNAP - Free Report) shares soared 7.5% in the last trading session to close at $61.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% gain over the past four weeks.

The upswing in share price came after the social-media company posted impressive first-quarter 2021 results which reflected 66% year over year increase in revenues to $770 million. The gains were fueled by a 22% increase in daily active users, to 280 million, as more people turned to online entertainment during the coronavirus pandemic.

With rebound in ad spending and the company’s growing efforts to create innovative and new ad formats, Snap is expected to see its growth trajectory meaningfully improve throughout the year.

Price and Consensus

This company behind Snapchat is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $826.8 million, up 82.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Snap, the consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SNAP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>