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.”
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
