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Snap plummets 30% as revenue falls short



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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Apple cancels its decade-long electric car project



apple electric vehicle

Apple has decided to halt its ambitious plans for ‘Project Titan’, according to a reliable insider.

The tech giant, which had been secretly working on the project for several years, reportedly encountered numerous challenges and roadblocks, leading to the cancellation of the initiative.

Titan falls

Initially aiming to rival leading electric vehicle manufacturers, the company faced hurdles such as technological complexities, supply chain issues, and intense competition in the rapidly evolving electric vehicle market.

Despite significant investments in research and development, Apple ultimately chose to redirect its resources towards other promising ventures.

Several employees working on the electric car project will be moved to the firm’s artificial intelligence (AI) division, according to Bloomberg News, which first reported the development.

Gen AI

Apple’s decision to hold back in the AI race has drawn attention, especially given the increasing role AI plays in shaping the future of technology.

With its rivals already at the forefront, Apple seems poised to break its silence and bridge the gap in incorporating this breakthrough technology.

Industry analysts suggest that Apple’s belated entry into the AI arena might be a strategic move, allowing the company to observe and learn from the experiences of its competitors.

The tech giant has a reputation for meticulous planning and delivering refined products, and this delay could signify a well-thought-out strategy to ensure a seamless integration of AI without compromising its standards.

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Nvidia’s remarkable growth sparks AI-space race



In the world of artificial intelligence, Nvidia has emerged as a titan, its semiconductor designs becoming indispensable for an array of tech companies.

Led by the visionary Jensen Huang, Nvidia’s stunning ascent has propelled it to a valuation of $2 trillion, marking a milestone in the tech universe.

Yet, this meteoric rise has also made Nvidia a prime target, with competitors and even its own customers vying to chip away at its dominance.

Huang, known for his philosophy of living in the present, has steered Nvidia through a transformative journey.

From its humble beginnings over three decades ago to its current stature as an AI powerhouse, Huang’s leadership has been instrumental.

Nvidia’s chips, originally tailored for computer graphics, found a new purpose in training AI systems, becoming indispensable for tech giants like Microsoft and Tesla.

However, Nvidia’s dominance has not gone unchallenged.

Competition rises

Rivals like Intel and Advanced Micro Devices have ramped up their AI chip offerings, while tech behemoths such as Amazon, Google, and Microsoft are developing their own in-house designs.

The announcement of a deal between Microsoft and Intel to produce custom chips underscores the intensifying competition in the AI chip market.

Despite Nvidia’s formidable position, Huang remains vigilant about securing the company’s future.

He is exploring opportunities in other industries, investing in startups leveraging Nvidia’s technology, and advocating for governments to build their own AI infrastructure. Embracing a startup-like culture, Huang fosters an environment where innovation thrives, constantly pushing the boundaries of what’s possible.

Nvidia’s journey reflects the dynamism of the AI landscape. As the company continues to shape the future of technology, its resilience in the face of mounting competition reaffirms its status as a pioneering force in the world of AI.

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Who will be the winners and losers of EV adoption?



The Australian Government has proposed the first ever fuel efficiency standard & sets regulations for Electric Vehicles.

The proposed standards will impact both traditional internal combustion engine vehicles and electric vehicles, encouraging a comprehensive shift towards eco-friendly transportation.

Electric vehicle manufacturers, such as Tesla, Nissan, and Hyundai, are likely to benefit from increased consumer interest in eco-friendly options.

Traditional automakers that have invested in hybrid and electric technologies, such as Toyota and Ford, may also find themselves on the winning side.

However, those lagging behind in the development of fuel-efficient vehicles may face a more challenging road ahead.

To discuss in detail, Matt Hobbs, CEO at Motor Trades Association of Australia, provides his insights into the realm of EVs and Government regulations. #ev #cars #tech

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