Snap Inc. (SNAP) shares rose more than 15% during Wednesday's session after second quarter financial results surpassed analyst expectations. Revenue rose 48% to $388 million, beating consensus estimates by about $30 million, while non-GAAP net losses came in at six cents per share, beating consensus estimates by four cents per share. Operating losses improved from $358 million a year ago to $305 million.

While the financial results were positive, the 8% increase in daily active users to 203 million was the biggest positive note. With these gains, the company surpassed analyst estimates of 192 million. Snaps per day also rose to more than 3.5 billion, suggesting that usage was improving across the company's platform.

Snap anticipates revenue of between $410 and $435 million for the third quarter, which was higher than expectations for $400 million. Meanwhile, the company believes that EBITDA losses will range from $85 million to $60 million, which is much less than the $138 million loss last year.

Chart showing the share price performance of Snap Inc. (SNAP)

From a technical standpoint, Snap stock broke out to fresh 52-week highs following the bullish financial results. The relative strength index (RSI) moved into overbought territory with a reading of 71.72, but the moving average convergence divergence (MACD) experienced a bullish crossover that could signal further upside. These indicators suggest that the stock could see some near-term consolidation before moving higher.

Traders should watch for some consolidation above prior highs at around $16.00 over the coming sessions. If the stock moves higher off of these levels, traders could see a move toward prior highs of around $20.00 made early last year. If the stock breaks down from these levels, traders could see a move toward trendline support and the 50-day moving average near $14.00, although that scenario seems less likely to occur.

The author holds no position in the stock(s) mentioned except through passively managed index funds.