Snap rises as Monness, Crespi, Hardt sees 'healthy' DAU growth in Q2 amid turmoil
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Snap (NYSE:SNAP) shares rose on Friday as investment firm Monness, Crespi, Hardt noted the company is likely to see "healthy" daily active user growth in the second-quarter, even after the company warned that revenue and EBITDA would be below the company's own guidance.
Analyst Brian White, who has a neutral rating on Snap (SNAP), noted that the company has improved its execution, made its platform more valuable and expanded its tech stack over the past couple of years. However, it faces stiff competition and the economy looks to be going into a recession, placing pressure on its business. 
"Given the sensitivity of advertising campaigns to the vicissitudes of the economy, we expect digital ad spending to come under pressure in the current environment and negatively impact Snap," White wrote in a note to clients, adding that he expects 347M daily active users as of the second quarter, up 18% year-over-year, which would be above the company's outlook of 343M-345M. 
Snap (SNAP) shares rose nearly 2% to $13.42 in premarket trading.
White also said that average revenue per user is expected to be "flat" at $3.34, but there could be pockets of strength, including in North America and Europe, which are forecast to see 11% and 1% growth, respectively. 
For the second-quarter, White expects Snap (SNAP) to report $1.156B in revenue and lose 2 cents per share, compared to a consensus of $1.145B and a loss of 1 cent. The analyst also forecasts third-quarter revenue to be $1.3B, up 12% sequentially and 22% year-over-year.
Nonetheless, the analyst expects the advertising market to "come under pressure" and negatively impact Snap (SNAP), especially as the economy looks to be getting weaker. 
Lastly, Snap has continued to make progress as it relates to the impact of Apple's (AAPL) App Tracking Transparency, but White said "more work needs to be done on the adoption front."
On Thursday, investment firm Morgan Stanley said Snap (SNAP) saw a 1% decline year-over-year in time spent in the second quarter, though that was better than the 3% to 13% year-over-year declines the firm has seen in the past year.