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Tech

Snap plummets 30% as earnings slide

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Snapchat announces new climate plan

Snap Inc saw its shares nosedive by 30% during Wednesday morning trading following its fiscal fourth-quarter earnings report, which missed revenue estimates and provided weak guidance.

The sharp decline comes as the social media giant faces challenges in rebounding from a tough advertising market in 2022, lagging behind competitors like Meta.

This downturn marks one of Snap’s worst days on the market since its debut in 2017, with previous significant drops of 43% in May 2022 and 39% two months later.

Despite reporting a quarterly revenue of $1.36 billion, slightly below analysts’ expectations of $1.38 billion, and an adjusted EPS of 8 cents versus the anticipated 6 cents, Snap continues to struggle with sluggish growth, marking its sixth consecutive quarter of either single-digit growth or sales declines.

Remain cautious

While Snap forecasts an uptick in growth for the first quarter, analysts remain cautious, with Morgan Stanley maintaining an underweight rating and lowering their price target to $11.

They cited Snap’s slower-than-expected ad turnaround and weak engagement, especially in comparison to the robust ad improvements observed at Meta and Amazon.

Snap attributed some of its challenges to external factors, noting that the conflict in the Middle East had a negative impact on year-over-year growth in the fourth quarter.

Despite these setbacks, Barclays analysts expressed optimism, maintaining an overweight rating and a $15 price target, likening Snap’s current state to Meta’s position five quarters ago, on the cusp of a recovery.

Underweight rating

JPMorgan analysts reiterated their underweight rating but raised the price target to $11, emphasizing the need for Snap to demonstrate stronger growth in engagement and its ad platform amidst the choppy recovery evident in its latest earnings and outlook.

In an interview on CNBC’s “Money Movers,” Snap CEO Evan Spiegel acknowledged the challenges but expressed confidence in the company’s trajectory, citing improved advertiser performance and increased revenue expectations. Spiegel also addressed Snap’s recent decision to reduce its workforce by around 10%, stating that the move aims to streamline operations and facilitate faster decision-making.

The market’s response to Snap’s earnings underscores investors’ concerns about the company’s ability to navigate the competitive landscape and deliver sustainable growth amid evolving advertising dynamics.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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World leaders, CEOs gather at Paris AI summit

World leaders and CEOs converge at Paris AI summit to discuss advancements and the future of technology.

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World leaders and CEOs converge at Paris AI summit to discuss advancements and the future of technology.

In Short

World leaders and CEOs met in Paris to discuss the rapid advancements and implications of artificial intelligence. The summit focused on collaboration, ethical guidelines, and strategies to prepare for an AI-driven future.

World leaders and CEOs convened in Paris at an AI summit to discuss the rapid advancements in artificial intelligence.

The event brought together key figures from various sectors to explore the implications of AI technology.

Topics of discussion included the potential benefits of AI, regulatory frameworks, and ethical considerations around its deployment.

Participants highlighted the need for collaboration between governments and the private sector to harness AI responsibly.

The summit aimed to foster dialogue on the challenges and opportunities presented by AI advancements.

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OpenAI rejects Musk’s $97.4 billion takeover bid

OpenAI’s Sam Altman rejects Musk’s $97.4 billion bid, calling it competitive, as tensions rise with conflicting interests.

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OpenAI’s Sam Altman rejects Musk’s $97.4 billion bid, calling it competitive, as tensions rise with conflicting interests.

In Short

OpenAI has rejected Elon Musk’s $97.4 billion takeover bid, viewing it as a competitive strategy. The company’s CEO, Sam Altman, and its board members, including Bret Taylor, have ongoing rivalries with Musk amid broader industry dynamics.

OpenAI has officially rejected Elon Musk’s $97.4 billion takeover bid.

Sam Altman, CEO of OpenAI, described Musk’s offer as a competitive strategy rather than a genuine acquisition attempt.

The board of OpenAI, which manages both its nonprofit and for-profit sectors, has not received any formal communication regarding the bid from Musk.

Currently, OpenAI is in the process of raising a funding round that could elevate its valuation to $300 billion, nearly double its previous worth.

A notable point of contention arises from Bret Taylor, former chairman of Twitter, who now oversees OpenAI’s board and has previously had disagreements with Musk over the Twitter acquisition.

In response to the takeover bid, Altman light-heartedly remarked on social media: “No thank you, but we’ll buy Twitter for $9.74 billion if you want.”

This exchange highlights ongoing rivalries in the tech sector and the strategic manoeuvres of influential figures like Musk and Altman.

As the landscape continues to evolve, it remains to be seen how these developments will impact both OpenAI and Musk’s future endeavours.

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Rising Ticketmaster scams: how to protect yourself from fraud

Rising cyber scams target Ticketmaster users, exploiting emotional connections; experts advise on protective measures against fraud.

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Rising cyber scams target Ticketmaster users and exploiting emotional connections.

In Short

Cyber scams targeting Ticketmaster users are on the rise, exploiting emotions and rushing fans into poor decisions. To avoid falling victim, individuals should verify offers, access official websites, and enhance security with measures like two-factor authentication.

Cyber scams targeting Ticketmaster users are increasing, causing significant vulnerability to fraud.

The rise of these scams is linked to three vulnerabilities: emotional connections to performances, reliance on digital platforms, and ease of access to scams.

Scammers exploit the fear of missing out (FOMO), particularly during high-demand events like Taylor Swift’s concerts.

Fans often rush into purchasing tickets without verifying the legitimacy of the offers, leading to poor decision-making.

If someone falls victim to a scam, their recourse is limited, often relying on Ticketmaster or other platforms for support.

Many fraudulent websites mimic legitimate ticket sellers, tricking users into entering personal information.

To avoid falling for scams, individuals should take their time, scrutinise offers, and ensure they access official websites directly.

Steve Tcherchian, Chief Product Officer and Chief Information Security Officer at XYPRO joins to discuss how to counter these cyber attacks.

Implementing two-factor authentication on ticketing platforms provides an additional layer of security.

While there are no guarantees to stop scams, ticket platforms must enhance their security measures.

Issues with customer service and support during scams can exacerbate the situation for victims.

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