Snapchat Can't See the Future

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Snapchat Can't See the Future

The lack of a clear outlook within its financial results sent shares of Snapchat parent Snap (NYSE: SNAP) down 14.97% in after-hours trading on Tuesday.

Financials: Snap reported earnings of 14 cents per share in the quarter, which was better than expected. But revenue only hit $1.3 billion, which was below estimates.

What Happened: The company achieved a 17% increase in daily active users. And the total time spent watching Spotlight content jumped by 100%.

But: Snap said it was unable to provide any guidance for revenue or earnings in the current quarter due to uncertainties and “significant headwinds.” To make matters worse, quarter-to-date revenue has already declined by 7%.

Stock Price: Snap’s stock is down 65% in the last 12 months. The disappointing earnings sent shares of other social platforms down in after-hours trading on Tuesday, including a 2.55% drop for Pinterest (NYSE: PINS).

Final Thoughts: It’s clearly a bad time to invest in Snap, but the concern is that other online advertisers could be in store for some dark times.

Notables

Notable Earnings Today: Meta Platforms (Nasdaq: META), Waste Management (NYSE: WM), Altria (NYSE: MO), Align Technology (Nasdaq: ALGN), T-Mobile (Nasdaq: TMUS), McKesson (NYSE: MCK), Peloton Interactive (Nasdaq: PTON), Aflac (NYSE: AFL), Boston Scientific (NYSE: BSX), Hologic (Nasdaq: HOLX), Enterprise Products Partners (NYSE: EPD), e.l.f. Beauty (NYSE: ELF), Humana (NYSE: HUM), Corteva (NYSE: CTVA), Thermo Fisher Scientific (NYSE: TMO), SiTime (Nasdaq: SITM), GSK (NYSE: GSK), Allstate (NYSE: ALL), AmerisourceBergen (NYSE: ABC), MetLife (NYSE: MET), Allegiant Travel (Nasdaq: ALGT), Brinker (NYSE: EAT), C.H. Robinson Worldwide (Nasdaq: CHRW), DXC Technology (NYSE: DXC), Evercore (NYSE: EVR), Fortive (NYSEL FTV), Kulicke & Soffa (Nasdaq: KLIC), Meritage Homes (NYSE: MTH), MGIC Investment (NYSE: MTG), NETGEAR (Nasdaq: NTGR), Novartis (NYSE: NVS), Old Dominion (Nasdaq: ODFL), Otis Worldwide (NYSE: OTIS), Qorvo, (Nasdaq: QRVO), Rayonier (NYSE: RYN), Scotts Miracle-Gro (NYSE: SMG).

Notable IPOs Today: Cetus Capital Acquisition Corp. Unit (Nasdaq: CETUU).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI (10:00 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), ISM Manufacturing Employment (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), FOMC Statement and Fed Interest Rate Decision (2:00 p.m. ET).

AMD Saved by Data Center Business

Photo by Vishnu Mohanan / Unsplash

Advanced Micro Devices (Nasdaq: AMD) did just enough with its financials earnings to jump by 1.41% in after-hours trading on Tuesday.

Financials: AMD reported earnings of 69 cents per share and revenue of $5.6 billion in the quarter; both were better than expected.

Details: While business units such as its clients' segment saw revenue drop 51% due to a weak PC market, data center revenue jumped by 42% due to strong sales.

But: The company expects revenue to decline by 10% year-over-year in the current quarter.

Final Thoughts: The results were not perfect, but AMD is in better shape than other semiconductor firms.

Electronic Arts Delays Star Wars Game

Video game developer Electronic Arts (Nasdaq: EA) announced that it was delaying the release of Star Wars Jedi: Survivor from March to April, sending shares down by 10.55% in after-hours trading on Tuesday.

Final Thoughts: The delay had an impact on EA’s first-quarter revenue guidance.

Nova Bank (Sponsored)

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Trends to Watch

Artificial Intelligence Beats Natural Stupidity: Move Over, ChatGPT. AI-Powered ETF Outperforms This Year (ETF.com)

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