Snap Analyst: Company Recognizes it Needs to Change
Snap stock has been on a roller coaster since reporting earnings after the bell Tuesday.
After dropping about 20 percent in after-hours trading, shares of the messaging app pared losses and even turned briefly positive after the announcement that China's Tencent, the owner of WeChat, had quietly amassed a 12 percent stake in the company over the last several months. The stock, though, turned lower again by the time markets opened, as investors may have realized the buy was made before the company's earnings report.
Tencent's move may not have come as a surprise, though. The company has had a good relationship with Snap CEO Evan Spiegel, according to GBH Insights’ chief strategy officer Daniel Ives.
Ives told Cheddar on Wednesday that this move opens the door for Snap to potentially grow in China, something that rivals like Facebook have struggled to do. Spiegel has come under fire in the past for not wanting to expand into emerging markets, but Ives points out that apparently, his tune has changed.
In its earnings report, Snap also admitted that its image messaging and multimedia mobile app is not as user-friendly as it could be. As a result, the company has decided to do a major redesign, which may hinder growth in the short-term. But the company hopes the overhaul will yield benefits in the long run.
Ives says redesigning the app and changing the company’s strategy is “a step in the right direction.”
“They’re going through maturation since going public,” he said. “It’s a learning experience for them … and now this is a huge ‘prove me’ time for Snap over the next 6 to 9 months.”
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
