Snap Inc's stock surged 5.20% during Tuesday's intraday session, reflecting strong investor optimism ahead of the company's upcoming second-quarter earnings report.

The rally appears to be driven by heightened expectations for Snap's financial performance. The company is scheduled to report its Q2 results on August 3, with market consensus projecting quarterly revenue of approximately $1.541 billion, a 14.37% year-over-year increase. Adjusted earnings per share are expected to reach $0.08, marking a more than 510% improvement from the prior year. Additionally, EBIT is anticipated to improve by around 46% year-over-year, further bolstering confidence.

Investor sentiment was also supported by Snap's previously announced workforce reduction of roughly 16%, or about 1,000 employees, which is expected to reduce the company's annual cost base by over $500 million in the second half of the year. This cost-cutting initiative is seen as a significant catalyst for profit margin recovery. The broader Interactive Media sector also strengthened during the session, adding to the positive momentum.