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Tech

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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TikTok dismisses report of U.S. sale to Musk as fiction

TikTok has categorically denied a report suggesting that Chinese officials are considering selling its U.S. operations to Elon Musk amid potential bans.

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TikTok has categorically denied a report suggesting that Chinese officials are considering selling its U.S. operations to Elon Musk amid potential bans.

The company described the claims, initially reported by Bloomberg News, as pure fiction.

TikTok’s parent company, ByteDance, is currently appealing to the U.S. Supreme Court to contest the potential ban.

Chinese officials reportedly prefer TikTok to remain under ByteDance’s ownership, dismissing any immediate plans to sell the U.S. operations.

Speculation about a partnership with Musk’s platform X to manage TikTok’s U.S. business has been refuted by TikTok, and no credible sources have verified the claim.

No official comments have been made by TikTok, ByteDance, Elon Musk, or X regarding the report. Additionally, Chinese government agencies, such as the Cyberspace Administration and Ministry of Commerce, have not provided any statements on the matter.

The Supreme Court is expected to deliberate on legislation tied to TikTok’s future, with a decision potentially compelling a sale or ban by January 19, driven by national security concerns. However, TikTok remains firm in its stance, refuting these reports as baseless.

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The coming battle of Big Tech vs The State

Musk forced to comply with Brazil’s court order against far-right accounts, highlighting tech companies’ struggles with global regulation.

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Elon Musk was forced to comply with Brazil’s court order against far-right accounts, highlighting tech companies’ struggles with global regulation.

The influence of social media platforms like X extends beyond economic factors; they also impact public perceptions and democratic values. Governments in India, Turkey, and Brazil have pressured X to remove content they consider harmful or misleading.

Last year, Elon Musk faced legal challenges in Brazil regarding the removal of far-right extremist accounts from X, his social media platform. Despite resisting a court order for months, Musk complied after the court threatened to block access for 20 million Brazilian users. It incident highlights the ability of nation-states to regulate powerful tech companies, which they accuse of spreading misinformation and hate speech.

Many governments say tech giants like Meta, Google, and Amazon often dominate markets, causing issues with misinformation and monopolistic practices. Their algorithms can lead to user addiction, while private data misuse raises concerns about competition and market fairness.

Governments have attempted to regulate these companies, with varying degrees of success. The European Union has made notable advances, including imposing significant fines on Apple and requiring interoperability between messaging services. In the U.S., Google faced a $700 million antitrust settlement.

Critics argue that government interventions can resemble censorship. Musk has positioned his actions as a defence of free speech, particularly after his acquisition of Twitter and subsequent reduction in content moderation.

While some tech companies are implementing self-regulation measures to safeguard users, these efforts may not be sufficient. As artificial intelligence evolves, regulation may become increasingly challenging for governments.

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The Future of Technology Unveiled in Las Vegas

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CES 2025 is lighting up Las Vegas with a showcase of groundbreaking technology.

AI-Powered Beauty and Health Devices

One standout is Samsung’s AI-powered beauty mirror, which delivers personalised skincare analysis and recommendations, setting a new standard for at-home beauty routines. Joining the health revolution is Withings’ Omnia, a smart body scanner that provides comprehensive health insights through advanced sensors and AI technology.

Innovative Robotics

CES 2025 is buzzing with robots designed to make life easier and more interactive. Yukai Engineering’s Mirumi is a pastel-coloured robotic companion that clings to your bag, offering baby-like interactions for comfort on the go. For those needing a helping hand at home, Roborock’s Saros Z70 vacuum robot features an extendable arm to pick up household items while cleaning.

Revolutionary Transportation

Pushing the boundaries of mobility, Atmos Gear’s electric skates promise a thrilling ride, reaching speeds of up to 18 mph with a 16-mile range. Controlled by a waist-worn battery pack and controller, these skates are perfect for commuters or adrenaline seekers.

Health Tech Innovation

FlowBeams’ BoldJet is revolutionising healthcare with its needle-free injection technology, using high-velocity liquid jets to deliver medications painlessly while reducing needle waste. This prototype points towards a future of more comfortable and sustainable medical procedures.

Empowering Robotics for Independent Living

Enchanted Tools’ Mirokai robot is tailored for elderly care, offering assistance and companionship to support independent living. Combining functionality with emotional connection, it’s a heartening example of how robotics can transform lives.

The Future of Smart Living

With its innovative range of devices, CES 2025 is also highlighting the intersection of convenience and technology. From smart home devices to AI-driven solutions, this year’s event underlines the industry’s commitment to making life simpler and more enjoyable.

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