Greg Sandoval/Business Insider Evan Spiegel answers questions at the 2018 Code conference.
- Snap's user growth looks solid, at least for the moment, Deutsche Bank analyst Lloyd Walmsley said.
- Shares have been rallying over the past week, with some positive Wall Street commentary helping.
- Watch Snap trade in real time here.
Snap's user growth is looking up, according to Deutsche Bank.
"Snap's user growth looks robust in May," Deutsche Bank analyst Lloyd Walmsley wrote in a note out to clients Tuesday evening. "We slightly increase our second-quarter Snap daily active user and revenue estimates."
Walmsley's said Snap's rollback of the unpopular redesign is a key driver of the user growth.
"We think it is plausible that the redesign of the redesign is getting traction across all geographies and ultimately has been helping sequential user growth in second-quarter 2018," he said.
Snap's new self-serve and automated advertising platform allows for visibility into user activity and volume, and Walmsley noted that he and his team can see added user growth of 3.4% in North America, 4.2% in Europe, and 4.7% in the rest of the world. He moved his second-quarter revenue estimates up to $249 million, up from $244 million.
Snap shares are up for a sixth consecutive day Wednesday, boosted by some positive commentary from Wall Street. Including Wednesday's gain of 2%, they've surged more than 25% since the winning streak began.
USAA Senior Equities Analyst Jason Lincoln recently told Business Insider that stock may have been "oversold" after its earnings disaster. And provocative but respected founder of Citron Research Andrew Left published a note saying that Snap is "one stabilizing quarter from giving investors a 30% or more return -- more than you can see in any FANG stock in our opinion."
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