Snapchat and Twitter (TWTR) both showed signs of long-awaited turnarounds this week, with analysts suggesting their businesses may be benefiting from concerns about Facebook (FB)’s impact on users and society.
The two companies, thought to be on the ropes at various points last year, surprised Wall Street this week with stronger than expected sales for the final three months of 2017. Snap showed renewed user growth; Twitter turned a profit for the first time.
Snap (SNAP), the parent company of Snapchat, surged nearly 50% on Wednesday, pushing the company above its IPO price for the first time since July. Twitter is now trading above $30 a share for the first time since 2015.
Facebook’s stock, on the other hand, is down slightly this year. The company rattled investorsby tweaking News Feed to show less content from publishers and brands. It also revealed users are spending less time on the social network as it chooses to show fewer viral videos.
Both issues are the result of Facebook trying to address its questionable impact on the world. Facebook has faced a groundswell of criticism for enabling fake news, filter bubbles, foreign election meddling and social media addiction.