Welcome to "#SocialStocks," The Fly's weekly recap of Wall Street's reactions to social media stock news.

SNAP BEATS EXPECTATIONS: Share of Snap (SNAP) have surged after reporting a Q3 earnings beat yesterday. Daily active users, or DAUs, were 249M in Q3, an increase of 39m or 18% year-over-year. DAUs increased sequentially and year-over-year on each of iOS and Android platforms. The average number of Snaps created every day grew 25% year-over-year and average revenue per user jumped 28%. Looking ahead, Snap said, "...While we have benefitted from an improving operating environment in recent months, we are conscious that external factors, similar to those that produced more volatile operating conditions earlier this year, could emerge and impact our momentum. In addition, advertising demand in Q4 has historically been bolstered by the holiday season in the latter portion of the quarter, and it is not clear at this time whether that key source of advertising demand will materialize in the same way this year as in prior years. Assuming that the current favorable operating conditions persist, and that the holiday season materializes in line with what we have experienced in prior years, we believe that year-over-year revenue growth of 47 percent to 50 percent is attainable in Q4. On the expense side we intend to continue to invest in the long term growth of our business, and are currently contemplating incremental investments to double down on the momentum we have established. Consequently we expect that year-over-year expense growth is likely to be higher in Q4 than we have observed year to date."

SNAP, PINTEREST ON ANALYSTS' RADAR: Truist analyst Youssef Squali upgraded Snap to Buy from Hold with a price target of $43, up from $25. The analyst says the quarter showed a "strong" advertiser activity, with the company looking to have made it back "to the other side of the pandemic" earlier than expected. Pinterest (PINS) was also upgraded to Buy from Neutral by Goldman Sachs analyst Heath Terry. Based on current app download data, Pinterest's "strong" user growth continued through Q3, Terry told investors in a research note. Feld checks, along with Snap's results, suggest that advertiser demand strengthened over the course of the quarter, particularly for smaller platforms like Pinterest, Twitter (TWTR), and Snap, says the analyst. Terry believes Pinterest's long term monetization opportunity should drive further outperformance of the shares given the "early stage nature" of the company's advertising technology and sales investments, particularly outside the U.S. On the other end of the spectrum, Morgan Stanley analyst Keith Weiss downgraded Slack Technologies (WORK) to Underweight from Equal Weight with a $27 price target. While Slack saw an uptick in engagement amid the current work from home environment, Weiss is increasingly concerned around Slack's ability to convert that customer interest into stronger billings, he told investors.

ELECTION LATEST FROM TWITTER AND FACEBOOK: Facebook's (FB) VP of global affairs and communications Nick Clegg said that 2.2M total advertisements on Facebook and Instagram have been blocked and 120,000 posts withdrawn for attempting to "obstruct voting" in the upcoming U.S. presidential election, AFP reported. Clegg noted that warnings were posted on 150M examples of false information posted online. “We have established partnerships with 70 specialized media, including five in France, on the verification of information,” he added. AFP is one of those partners. Meanwhile Twitter CEO Jack Dorsey said that it was wrong for his company to block links without context to a New York Post article making claims about Democratic presidential candidate Joe Biden's son, Hunter. This came after Axios reported the company took down a tweet from one of President Trump's most visible coronavirus task force members, Scott Atlas, that claimed widespread use of face masks does not help slow the spread of COVID-19.

FACEBOOK TESTS MINI SOCIAL NETWORK: Facebook said it is testing a new feature that encourage users to post and share news in miniature social networks centered on small geographical areas, The Verge's James Vincent reported. Users can make unique profiles that share limited information with their neighbors, while the social media giant will use the detailed location info it gathers from those enrolled to serve "more relevant" advertisements, Vincent said. The new feature, called Neighborhoods, is currently only being tested in Calgary, though it's probable the company will provide access to more areas if the test is successful, the author notes. Users reportedly need to confirm their location to be matched to their are and then create a limited profile that can be viewed by those nearby, even if they’re not Facebook friends.