Portland News

June 17, 2024

Snap stocks continue on a sharp decline

Latest Posts

Why Opening a Boba Tea Shop in Portland is a Venture Worth Exploring

Why Opening a Boba Tea Shop in Portland is a Venture Worth Exploring

Boba tea, also known as bubble tea, has gained immense popularity worldwide, becoming a beloved beverage for many. Portland, with its vibrant food culture and diverse population, presents an excellent opportunity for entrepreneurs looking to start a boba tea shop. This article explores why opening a boba tea shop

Share this article
Inspiring Change- Shawn Wolfe’s Transformative Impact on the Fitness Industry

Inspiring Change: Shawn Wolfe’s Transformative Impact on the Fitness Industry

By: Udit Ghosh Shawn Wolfe, the founder of Wolfe4Life Training & Nutrition, has become a transformative figure in the fitness industry. His journey from Air Force service to becoming a prominent fitness coach is a testament to his dedication and innovative approach to health and wellness. Through Wolfe4Life, Shawn

Share this article
How to Prevent Sickness After Getting Caught in the Rain

Staying Healthy: How to Prevent Sickness After Getting Caught in the Rain

Getting caught in the rain can be an unexpected and uncomfortable experience. Many people worry that being wet and cold will lead to illness. While it’s not the rain itself that causes sickness, the stress on the body can lower your immune system, making you more susceptible to infections.

Share this article
How Portland's Timber Industry Thrives Through Sustainability and Innovation

How Portland’s Timber Industry Thrives Through Sustainability and Innovation

The timber industry has been a cornerstone of Portland’s economy for over a century. Despite challenges from environmental regulations and market fluctuations, the industry remains robust. This article explores how the timber industry continues to thrive in Portland, focusing on sustainable practices, technological advancements, and economic impact. Historical Significance

Share this article
Why Video Promotions Rule in Portland

Lights, Camera, Conversion: Why Video Promotions Rule in Portland

In a city as vibrant and image-conscious as Portland, standing out from the crowd can feel like scaling a misty Mount Hood. But fear not, fellow entrepreneur! There’s a powerful marketing tool waiting in your wings (or should we say, viewfinder) – the mighty video promotion. Forget your static

Share this article

 

Amid a growing number of struggling businesses, Snapchat’s parent company, Snap, continues to endure a challenging year of slow revenue growth.

Revenue growth

On Thursday, Snap reported revenue of $1.13 billion for the three months ending September.

The report shows a modest 6% year-over-year increase, less than Wall Street expected.

The company is currently facing shrinking advertising budgets in an uncertain economic environment.

The company released a letter saying several factors had slowed sales growth.

Factors include growing competition and fear of advertisers, which makes up Snap’s core business.

“We are finding that our advertising partners across many industries are decreasing their marketing budgets,” the company said in its letter.

“Especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs.”

Read also: October starts big as huge rally pulls up the stock market

Snap shares and report

In after-hours trading after the earnings report, Snap shares fell nearly 25%.

The company’s report will usher in what should be a sobering period of tech earnings.

Layoff announcements, hiring freezes, and cost-cutting measures have become increasingly common across the industry amid lingering recession fears.

The company sparked a wave of concern in May when it warned tech investors that the economy was deteriorating faster than expected.

Deteriorating economic conditions impacted sales and earnings guidance for the quarter.

In late August, Snap announced plans to lay off 20% of more than 6,400 employees worldwide.

Economic headwinds and competition

Snap faced headwinds from rising inflation, a stronger dollar and broader economic concerns.

The latter has caused advertisers and consumers to reconsider their spending in the United States and abroad.

Snap is also facing increasing competition from TikTok, one of its fastest-growing rivals.

The company continues to navigate its digital advertising business after Apple’s privacy changes made it harder for marketers to target users with ads.

Read also: Kroger and Albertson set to merge in deal announcement

Positive notes

Despite the report, Snap had a glimmer of hope as the number of daily active users rose 19% year-over-year to 363 million in the third quarter.

The company’s net loss was also lower than Wall Street expected.

However, Snap still lost $360 million in the quarter, compared to a loss of $72 million a year earlier.

Most of the $155 million loss comes from restructuring costs related to layoffs.

The company refused to share its financial outlook for the last three months of 2022.

In the letter, the company wrote:

“We expect that the operating environment will continue to be challenging in the months ahead and believe the actions we are taking provide a clear path forward for Snap.”

Reference:

Snap stock falls nearly 25% after revenue hit by shrinking advertiser budgets

Share this article

(Ambassador)

This article features branded content from a third party. Opinions in this article do not reflect the opinions and beliefs of Portland News.