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Snap plummets 30% as revenue falls short

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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.

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Airbus A320 fleet faces software upgrade due to risk

Airbus alerts A320 operators to urgent software fix after JetBlue incident raises safety concerns

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Airbus alerts A320 operators to urgent software fix after JetBlue incident raises safety concerns

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In Short:
– Airbus warns over half of A320 fleet needs software fixes due to potential data corruption risks.
– Affected airlines must complete upgrades before next flights, with operational disruptions anticipated during a busy travel season.

Airbus has issued a warning regarding its A320 fleet, indicating that over half of the active jets will require a software fix.

It follows a recent incident involving a JetBlue Airways aircraft, where “intense solar radiation” was found to potentially corrupt data crucial for flight control system operation.

The European plane manufacturer stated that around 6,500 jets may be affected. A regulation mandates that the software upgrade must occur before the next scheduled flight.

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Operational disruptions for both passengers and airlines are anticipated. The issue arose from an incident on October 30, where a JetBlue flight experienced a computer malfunction that resulted in an uncommanded descent. Fortunately, no injuries occurred, but the malfunction of an automated computer system was identified as a contributing factor.

Airlines, including American Airlines Group, have begun to implement the required upgrades.

The majority of affected jets can receive an uncomplicated software update, although around 1,000 older models will necessitate an actual hardware upgrade, requiring grounding during maintenance.

Hungarian airline Wizz Air has also initiated necessary maintenance for compliance, potentially affecting flights. This announcement has surfaced during a busy travel season in the US, with many facing delays due to other factors as well.

Regulatory Response

The European Union Aviation Safety Agency has mandated that A320 operators replace or modify specific elevator-aileron computers. The directive follows the JetBlue incident, where a malfunction led to a temporary loss of altitude.

Airbus’s fix applies to both the A320 and A320neo models, representing a vital response in ensuring aircraft safety.


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China blocks ByteDance from using Nvidia chips in new data centres

China blocks ByteDance from using Nvidia chips, tightening tech control and pushing for domestic AI innovation amid U.S. restrictions.

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China blocks ByteDance from using Nvidia chips, tightening tech control and pushing for domestic AI innovation amid U.S. restrictions.


Chinese regulators have moved to block ByteDance from deploying Nvidia chips in newly built data centres, tightening control over foreign technology used by major Chinese tech giants. The decision comes after ByteDance made substantial purchases of Nvidia hardware amid fears of shrinking supply from the United States.

Washington has already restricted the sale of advanced chips to China, allowing only weakened versions into the market. Beijing’s latest move reflects its push to reduce dependence on U.S. technology and accelerate home-grown AI innovation.

The ban places operational and financial pressure on ByteDance, which must now work around a growing pile of Nvidia chips it is no longer allowed to use. Domestic suppliers like Huawei are expected to step in as China intensifies its pursuit of tech self-reliance.
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OpenAI launches shopping research tool for ChatGPT users

OpenAI launches shopping research tool to enhance e-commerce experience ahead of holiday season spending boost

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OpenAI launches shopping research tool to enhance e-commerce experience ahead of holiday season spending boost

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In Short:
– OpenAI’s “shopping research” tool helps users find detailed shopping guides tailored to their preferences.
– Users can access Instant Checkout for purchases while ensuring user chats are not shared with retailers.
OpenAI has launched a new tool called “shopping research,” coinciding with an increase in consumer spending ahead of the holiday season.This tool is aimed at ChatGPT users seeking comprehensive shopping guides that detail top products, key differences, and the latest retailer information.

Users can customise their guides based on budget, features, and recipients. OpenAI notes that while the tool takes a few minutes to generate responses, users can still use ChatGPT for quicker queries like price checks.

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When users ask specific prompts, such as finding a quiet cordless stick vacuum or a gift for a niece who loves art, the shopping research tool will appear automatically. It can also be accessed via the menu.

Shopping Research

OpenAI has been expanding its e-commerce capabilities, with the introduction of the Instant Checkout feature in September, enabling purchases directly through ChatGPT.

Soon, users of the shopping research tool will also be able to use Instant Checkout for making purchases.

OpenAI assures that shopping research results are derived from publicly available retail websites and will not disclose user chats to retailers, although it does warn that inaccuracies may occur in product availability and pricing.

Shopping research is now available to OpenAI’s Free, Go, Plus, and Pro users logged into ChatGPT.


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