The stock of Snap declined by 25% on Thursday and another 31% today Friday following disappointing third-quarter (Q3) financial results.
The social media company on Thursday reported revenue of $1.13 billion for the three months ending in September, a 6% increase that doesn’t compare to a period of double-digit. Snap’s net loss grew to $360 million, including $155 million in “restructuring charges.”
Despite daily active users rising to 363 million, an increase of 19% or 57 million from the same period in 2021.
“This quarter we took action to further focus our business on our three strategic priorities: growing our community and deepening their engagement with our products, reaccelerating and diversifying our revenue growth, and investing in augmented reality,” CEO Evan Spiegel said of the quarter.
Snap shares are reported to have lost over three-quarters of their value this year and are down more than 30% since July when the company reported second-quarter results that missed on the top and bottom lines.
Reports disclose that if the stock closes at this level on Friday, it would be the lowest it has gone since 2019. The company shares are also reported to have tumbled 87% from their record close in September 2021.
Snap’s primary source of revenue generation is through the sale of its advertising products on its core mobile device platform Snapchat, and it has so far continued to face stiff competition from fast-growing competitors like TikTok and is still navigating its digital ads business in the wake of privacy changes implemented by Apple that have made it more difficult for marketers to target users with ads.
Spiegel disclosed that the company’s stock has continued to fall due to supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising.
Snap said in its letter to investors, “Our revenue growth continued to decelerate in Q3 and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds, and increased competition.
“We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital.
“Forward-looking revenue visibility remains incredibly challenging, and this is compounded by the fact that revenue in Q4 is typically disproportionately generated in the back half of the quarter, which further reduces our visibility.”
Recall that in late August, Snap announced plans to lay off some 20% of its more than 6,400 global employees, or more than 1,200 staff as it had to confront headwinds from rising inflation, a stronger dollar, and broader economic jitters that led to some advertisers and consumers to rethink their spending.
As the company stock continues to fall, Snapt that worth more than $100 billion a year ago is now worth less than $20 billion.
Twitter CEO, Elon Musk Alleged Apple Plans to Remove Twitter From iOS Store
Musk claimed that Apple has mostly stopped advertising on Twitter
Twitter’s new owner and CEO, Elon Musk, has alleged that Apple Inc. is planning to remove the Twitter app from the iOS App Store, the billionaire revealed this in a series of tweets yesterday.
“Apple has also threatened to withhold Twitter from its App Store, but won’t tell us why,” Musk tweeted on Monday.
Aside from the threat to remove Twitter from its App Store, Musk also disclosed that Apple has mostly’ stopped advertising on Twitter.
In the following tweet, Musk claimed that Apple has mostly stopped advertising on Twitter. “Do they hate free speech in America,” he asked.
The brands have alleged that Twitter under the leadership of Elon Musk will open the social media platform to hate speech.
If Apple eventually removes Twitter from the iOS store, it would be detrimental to Twitter’s business, which is already struggling with a loss of advertisers following Musk’s takeover.
Millions of users get the Twitter application from the Apple iOS store. Therefore new users will not be able to download the Application on the iOS store while existing users will be deprived of updating the app.
Washington Post reported that Apple was the top advertiser on Twitter in the first quarter of 2022, spending $48 million on ads on the social platform.
The newspaper added that Apple’s spending accounted for more than 4 percent of Twitter’s revenue in that quarter.
Although Apple CEO, Tim Cook nor any of the company’s representatives responded to Musk’s post.
The tweet however caught the attention of United States lawmakers who have proposed bipartisan legislation that aims to dismantle the power that Apple and Google wield through their app stores.
“This is why we need to end the App Store duopoly before the end of this year,” one of the lawmakers, Rep. Ken Buck tweeted.
“No one should have this kind of market power,” he added.
WhatsApp Introduces Self Messaging Feature Named “Message Yourself “
WhatsApp to roll out new feature, both Android and iOS users in the coming weeks
Instant Messaging platform “WhatsApp” has introduced a new feature that allows users to message themselves.
The platform noted that the new feature will be rolled out for both Android and iOS users in the coming weeks.
Investors King learnt that WhatsApp’s “Message Yourself” feature could be useful for messages such as to-do-list, reminders, or draft messages to be sent late.
Prior to this development, WhatsApp users have to use a workaround to message themselves on the platform.
The method includes using the URL wa.me/ followed by the ten-digit number to send messages, photos and videos to themselves.
But with the new feature, users can simply start a chat with their number from the contact list. Users will see their contact card as ‘Message Yourself’ at the top of the list.
In October, the feature was reported to be in the beta version ahead of the mass rollout.
According to WhatsApp, users will be able to send photos, audio, and videos along with messages to themselves using the feature
For users to enjoy the new feature, they will have to update their WhatsApp application on their smartphones. They can do so either by going to Google Play Store or the Apple App store.
Users will then tap on the new chat button at the bottom right where they will see a list of all contacts including “message yourself”. They can start to use the feature once they tap on it.
Meanwhile, WhatsApp has recently rolled out a new feature which allows users to run quick polls in groups and personal chat.
However, the feature which was recently announced on the WhatsApp platform a few days back is not yet available for all users. Nonetheless, Investors King understands that it will make interaction on the platform more interesting.
Twitter Employees Quit in Hundreds After Elon Musk Long Hours Demand
Twitter staff down tools ahead of Elon Musk’s Thursday deadline
Hundreds of Twitter employees have decided to quit the social media company following a Thursday deadline from new owner Elon Musk. Elon Musk had earlier disclosed in an email message that employees that are not ready to work long hours should leave.
According to insider sources, hundreds of employees have resigned, walking away from a potential work culture that Elon Musk called “Hardcore”.
Investors King earlier reported that Musk’s work philosophy “Hardcore” requires “working long hours at high intensity”.
In the email he sent to staff, Musk told them to commit to taking more workload and perform exceptionally or walk away with three-month severance.
According to the Verge Magazine, farewell emojis kept pouring into Twitter’s slack account as exiting staff signified their decision to leave the microblogging company.
“I’m not pressing the button,” one departing employee posted in Slack. “My watch ends with Twitter 1.0. I do not wish to be part of Twitter 2.0.” the Verge Magazine quoted one of the employees.
It could be recalled that Elon Musk named the next phase in Twitter “Twitter 2.0” instructing those who want to join the next phase to press “Yes” on a Google form sent to employees.
The message added that those who fail to press “Yes” at the end of the deadline which was 5 PM ET on Thursday are subtly saying they want to leave the social media company.
Prior to this development, Elon Musk had sacked half of the company’s workforce claiming the company wastes about $4 million daily on an excessive workforce.
Thereby, with the scale of the recent resignation, Twitter may face fresh challenges in meeting up to its core mandate amid growing opposition from rival platforms such as Tiktok and soon to be launched “Bluesky”.
The platform which is quickly gaining traction attracted more than 30,000 users in two days to its beta version ahead of the launch.
News4 weeks ago
Npower News: What You Need to Know Before Taking ‘Work Nation’ Eligibility Test
News3 weeks ago
Npower News: NASIMS Announced “Work Nation’s” Minimum Cut-Off Mark
Travel2 weeks ago
Nigerians Eligible For Residence Permit in Norway
News2 weeks ago
Npower News: Latest Update On Npower Payment for Beneficiaries
News4 weeks ago
Npower News: NASIM Provides Requirements Resolution For Failed August Stipend
Blockchain4 weeks ago
FG to Train 30,000 Nigerians on Blockchain Technology; Released Link For Registration
Travel1 week ago
Passengers Groan as Air Tickets Increase by More than 100%
News3 weeks ago
Npower Clarifies “Work Nation” Programme, State It is Optional