Morning Commentary: Snap, Twitter convertible notes in focus early on earnings news

By Abigail W. Adams

Portland, Me., July 23 – The convertible notes of social media companies dominated the tape on Friday.

Twitter Inc.’s and Snap Inc.’s convertible notes were in focus following Snap’s blow-out earnings report.

Twitter’s 1% convertible notes due 2021 were trading down on an outright basis as stock gained.

The notes were down about 1 point outright with stock up about 3%.

The notes were changing hands at 100.5 versus a stock price of $70.44 early in the session.

There was more than $8 million in reported volume.

Twitter’s stock was changing hands at $71.93, an increase of 3.39%, shortly before 11 a.m. ET.

Snap’s 0% convertible notes skyrocketed on an outright basis.

The notes were up 11 points as stock surged more than 20% as the social media company once again trounced expectations.

The 0% convertible notes were changing hands at 116.125 versus a stock price of $77.27 early in the session.

Snap’s stock was changing hands at $75.63, an increase of 20.10%, shortly before 11 a.m. ET.

Both Twitter and Snap beat expectations on the top and bottom lines, reported a surge in user growth, and gave upbeat guidance, laying to rest fears that social media companies would lag as life normalized post-Covid.

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