The much hyped tech IPO this year, Snap Inc(NYSE:SNAP) stock corrected over 37.5% since its listing (As of 1:10PM EDT on September 7^th, 2017; Source: Google finance).

Snap’s stock sentiment got weaker post their second quarter of 2017 results, which were lower than expected than street. Moreover, the rising competition from its peers, especially Facebook further hurt the stock sentiment. The group’s daily active users (DAU) rose to 173 million in the second quarter of 2017, as compared to 143 million in prior corresponding period, which is a rise of 30.5 million or 21% on a year-over-year basis. DAUs enhanced 7.3 million or 4% on a quarter-over-quarter, as compared to 166 million in the first quarter of 2017. Average revenue per user (ARPU) rose 109% yoy to $1.05 in the second quarter of 2017, against ARPU of $0.50 in pcp. ARPU enhanced 16% as compared to the $0.90 in the first quarter of 2017. Hosting costs per DAU rose to $0.61 in the second quarter of 2017, from $0.55 in Q2 2016 and $0.60 in the previous quarter. Capital expenditures reached $19.4 million in the second quarter of 2017, from $16.4 million in second quarter of 2016 and $18.0 million in earlier quarter. Revenue during the quarter surged 153% yoy while rose 200% on the six months ended on June 30^th, 2017.

But the sentiment on the stock revamped as investors must be leveraging the lucrative levels of the stock. Snap stock surged over 5.6% on September 7^th, 2017 (as of 1:19PM EDT; Source: google finance) leading to a rise of 14.3% in the last four weeks. Apple’s upcoming Sept. 12^th event of their smartphone release, might also drive Snap as per Brian White, Drexel Hamilton analyst. Apple might give a deeper view into ARKit, the augmented reality developer platform that would be available on iPhones and iPads via iOS 11. This could be positive for Snap, as they heavily invested on AR technology via lenses and filters on the Snapchat app and Spectacles, its interactive camera glasses.