![]() Verizon also reported virtually flat year-over-year revenue and phone connections in the second quarter, along with earnings that barely missed analyst estimates.Ī new power couple. The telecom giant has warned that rising interest rates and higher-than-expected operating costs would weigh on its bottom line in 2022. Sell this phone company? Verizon shares slipped 7% in mid-day trading Friday after it lowered its profit and revenue forecasts for the second half of the year, The Wall Street Journal reported. In a separate development, the two founders of crypto hedge fund Three Arrows Capital ended their five-week silence in an interview with Bloomberg, accepting some responsibility for risky bets that led to the demise of their firm last month. The raids included a search of the home of Terraform Labs co-founder Daniel Shin, who has tried to distance himself from the company and his fellow founder, Do Kwon. South Korean authorities conducted a series of raids this week as part of a criminal investigation into the $60 billion collapse of the TerraUSD and Luna cryptocurrency tokens, Bloomberg reported Thursday. Want to send thoughts or suggestions for Data Sheet ? Drop me a line here.įeeling the heat. Until then, keep the parka in the closet. If those companies, whose ad sales far outpace Snap and Twitter, also underwhelm on revenue, the case for an ad winter could be unimpeachable. The accuracy of Snap’s analysis will become clearer next week, when advertising heavyweights Alphabet, Meta, Amazon, and Microsoft report their second-quarter earnings. “It’s hard to disentangle the numerous factors here impacting what’s clearly a headwind driving deceleration in our business,” Snap CFO Derek Andersen said. Snap officials acknowledged the rise of “very large and very sophisticated competitors” during Thursday’s earnings call, though they spent significantly more time arguing that broader advertising challenges are causing the sharp slowdown in revenue growth. “After spending many years denying that competition from TikTok is an issue, it may turn out that Snap’s usage and advertising growth is actually far more challenged than they knew,” analysts at MoffettNathanson wrote following Thursday’s earnings release, according to MarketWatch. Social media platforms might have weathered that disparity better in the past through superior advertising technology, but Apple’s operating system privacy changes last year have forced companies to re-engineer their targeted marketing systems. But investors have reason to wonder if there’s a bigger problem afoot at the two companies. Snap and Twitter officials may well be right that the current advertising landscape is too cold for any marketing-dependent organization to bear. (Twitter also blamed the uncertainty around the Musk acquisition for the revenue decline). Twitter executives didn’t hold an earnings call, citing the company’s pending sale to Elon Musk, but they noted in a press release that “advertising industry headwinds associated with the macroenvironment” contributed to the revenue miss. ![]() Social media rival Twitter, which is nearly as dependent on ad dollars, lent that argument some credence Friday morning when it reported second-quarter revenue of $1.18 billion, well short of analyst estimates of $1.32 billion, and down 1% from the year before. About 99% of Snap revenue is generated by ads. Snap executives largely pinned the dour performance and outlook on a rapid pullback among advertisers, who are tightening their purse strings amid a period of economic uncertainty. Those comments sent Snap shares tumbling 39% in mid-day trading Friday, marking the company’s second major stock collapse this year. As a result of the rapidly shifting terrain, Snap officials refused to provide guidance for the current quarter, other than to note that July revenue so far is “approximately flat” year-over-year. ![]() Snap’s leadership blamed a fast-deteriorating global advertising market following the release of middling second-quarter results, which fell slightly short of Wall Street’s revenue and earnings estimates. At least, that’s what Snap executives argued Thursday-even if the full forecast might be more complicated than they say. ![]()
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