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.”
Orangetheory Fitness is redefining the future of workouts with smarter tech, strength-based programming, and community-driven studios built for what’s next.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
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.
