Snap's stock jumps 8% on earnings beat and strong sales forecast

Snap shares surged 8% in extended trading after the social media company beat second-quarter estimates and issued third-quarter guidance above Wall Street expectations. The company topped analyst forecasts for both revenue and earnings in Q2.

The earnings beat marks a turnaround for Snap, which has faced sustained pressure from competition and advertising headwinds. The current-period forecast signals management confidence in the platform's ability to sustain momentum into the back half of the year.

The after-hours move represents a significant reversal for SNAP, which has struggled to regain investor confidence following multiple quarters of disappointing results. The strong guidance suggests Snap's advertising business is stabilizing despite ongoing macro concerns that have weighed on digital ad spending across the sector.

Traders will be watching whether the extended-session gains hold into regular trading, as SNAP has a history of volatile post-earnings moves that fade during the next session.