In late March, a week or so after Snap stock had plunged to as low as $8—half where it was trading a month earlier—CEO Evan Spiegel reassured employees. His message was that the company was well positioned to weather the downturn. At the time some ad executives were skeptical, asking why Snap would be better off than other companies.
Today, the skeptics are quiet. After strong first-quarter earnings, Snap stock has regained all the ground it lost through the sell-off. One major reason is a surge of audiences for Discover, a feature of the Snapchat app that for the past few years had likely been an afterthought for investors and even users. Carrying short news programs produced by media companies, Discover is winning over audiences keen for information about the coronavirus.