![]() ![]() With many Tech companies on deck to report June-quarter results this week, the market will be looking for more color on business spending trends, particularly on the cloud side. Driving this momentum has been a combination of favorable developments on the macro front, primarily growing clarity surrounding the Fed’s tightening cycle, optimism about the impact of artificial intelligence (AI) that some view warily as reminders of the late 1990s, and an emerging sense that the worst of Tech spending headwinds is either behind us or close to that stage. Tech stocks have been standout performers in the market this year. Will Big Tech Earnings Keep the Rally Going? This week’s list includes Nvidia NVDA, Alphabet GOOGL, Meta Platforms META, Snap SNAP and Microsoft MSFT. Based on after-hours pricing, the company is now worth $20 billion.Chicago, IL – J– releases the list of companies likely to issue earnings surprises. Snap's market cap peaked at $136 billion in September. Meta and Pinterest shares fell 5% in after-hours trading on Thursday while Alphabet shares declined 2.9% and Twitter dropped 1.5%. Twitter is set to report results Friday morning, followed by Alphabet and Meta next week. Investors will soon get a clearer picture of the online ad environment. ![]() Snap revealed new desktop app shortly after it debuted its Snapchat+ paid subscription plan, which costs $3.99 a month and lets people access early features and see who has viewed their Snaps. And for their new employment contracts, Spiegel and Murphy will receive an annual salary of $1 and no equity compensation.Įarlier this week, Snap debuted Snapchat for Web, a desktop version of the mobile Snapchat app that people can use to send messages and make video calls with their Snap contacts. Snap also announced a stock repurchasing program of up to $500 million. "In certain high-growth sectors, businesses are reassessing investment levels amid the rising cost of capital, which is further reflected in campaign budgets and the level of bids per action," Snap said. Snap said that even some relatively healthy businesses were curbing their commitments because of the "input cost pressure due to inflation." Additionally, a challenging economy, Apple's 2021 iOS update and increased competition from companies like TikTok have led marketers to pull back on their spending. Snap attributed its disappointing results to slowing demand for its online ad platform. The company said it now plans to "substantially slow our rate of hiring, as well as the rate of operating expense growth." "The second quarter of 2022 proved more challenging than we expected," Snap said in the investor letter. At the time, Snap cited a macroeconomic environment that was deteriorating much faster than expected. In May, Snap said it wouldn't meet the second-quarter guidance it set the prior month, leading to a 43% plunge in the share price. It's the latest chapter in a tough year for Snap, whose stock has lost almost two-thirds of its value in 2022. "We are not satisfied with the results we are delivering, regardless of the current headwinds," the company said in the letter. Analysts were expecting sales growth of 18% for the third quarter, according to Refinitiv. ![]() In its investor letter, Snap said it's not providing guidance for the third quarter because "forward-looking visibility remains incredibly challenging." The company said that revenue so far in the period is "approximately flat" from a year earlier.
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