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.
Elon Musk Envisions X as the Future of Your Financial Life
Tech visionary Elon Musk unveiled his vision for X, aiming to transform it into the epicenter of people’s financial worlds by the end of 2024.
Musk’s plan transcends mere payment solutions, targeting nothing short of the complete financial ecosystem, including money and securities. “You won’t need a bank account,” he affirmed.
X, led by CEO Linda Yaccarino, sees this as an ambitious opportunity that could reshape the financial landscape as we know it.
Musk expressed his unwavering commitment to the cause, stating, “It would blow my mind if we don’t have that rolled out by the end of next year.”
This ambition traces back to Musk’s dot-com-era online bank, X.com, which later evolved into PayPal. Musk aims to take a page from his earlier playbook, hoping to outshine PayPal with a more comprehensive approach.
The platform’s offerings are set to include high-yield money market accounts, debit cards, checks, and loan services. Musk’s endgame? An ecosystem that empowers users to send money worldwide instantly and in real-time.
However, this transformation is not without its challenges. Elon Musk must convince users of the necessity of such an all-encompassing platform while gaining their trust with their financial lives.
The vision of X as an “everything app” resonates with the rise of super apps like WeChat in China, which provide users with access to a myriad of services, from shopping to transportation.
As X positions itself to revolutionize the financial industry, Musk’s audacious endeavor promises to change the way we handle money, potentially eliminating the need for traditional banking as we know it.
The world watches with bated breath to see if Musk’s bold vision will become a reality.
WhatsApp Introduces Dual Account Feature, Enabling Users to Sign Into Two Accounts
WhatsApp has introduced a groundbreaking innovation that promises to redefine the user experience.
This new feature allows individuals to simultaneously manage two WhatsApp accounts on a single device, eliminating the need for dual phones.
The eagerly anticipated announcement was made by Mark Zuckerberg, Facebook’s CEO, who assured Android users that this feature will soon grace their screens.
Gone are the days of juggling multiple WhatsApp accounts, a task that often required carrying two separate devices. While tech giants like Xiaomi and Oppo had previously introduced app cloning features for multiple WhatsApp instances, WhatsApp’s integrated approach sets a new standard for seamlessness.
This innovation is poised to be a game-changer for users who navigate both personal and professional realms on this ubiquitous messaging platform.
Cumbersome login-and-logout routines and the perpetual concern of messaging from the wrong account will soon be a thing of the past, replaced by a newfound ease of multitasking.
Activating this feature is a straightforward process. Users need only navigate to the ‘Settings’ menu and select ‘Add Account.’ During setup, a second phone with a SIM card or a device supporting eSIM technology is required to unlock the full potential of multi-SIM functionality.
WhatsApp ensures that each account can have its own customized notification and privacy settings, preserving data integrity and personalization.
In addition to the dual account feature, WhatsApp recently introduced passkey support for Android, enhancing security by providing an alternative to SMS-based two-factor authentication.
This latest advancement underscores WhatsApp’s dedication to user convenience, connectivity, and digital identity security, setting the stage for a more organized and efficient way of communication.
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