Snap breaks bad news on ads

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Things are going south fast for social media, with Snap alert overnight a rapid deterioration in the “macroeconomic environment” over the past month, which has caused its shares to fall more than 40 percent to date.

The troubles for camera app Snapchat’s parent company have also spooked investors at its rivals — Twitter is down 4 percent, Alphabet is down 6 percent, Meta is down 9 percent, and Pinterest is down 22 percent.

All rely on advertising for the bulk of their revenue, and Snap expects its current-quarter revenue to now come in below the low end of its current guidance of 20 percent to 25 percent year-over-year growth. Morgan Stanley analysts said the forecast already assumed the operating environment would become more difficult and some advertising campaigns would be halted or cut. “We anticipate that all online advertising platforms will feel some impact from a significant consumer pullback,” they said.

In a memo to employees, Chief Executive Evan Spiegel said that while the company remained “strong,” the company faced “rising inflation rates and interest rates, supply chain shortages and work disruptions, changes in platform policies, and the effects of the war in Ukraine and.” more”. Lex says Snap’s hopes of positive net earnings this year may be over.

The issues listed by Snap’s CEO sparked a broader sell-off the S&P 500 down 2 percent on Wall Street and the The tech-heavy Nasdaq falls almost 3 percent.

Snap calls itself a camera company, but its app focuses on smartphones, sales of which are declining. Market research firm Gartner reported today that global smartphone sales fell 10 percent year-on-year in the first quarter, impacted by “delayed product launches due to ongoing component shortages, rising inflation and weak consumer confidence,” among other factors.

analysts at Said Canalys Shipments in Europe fell 10 percent in the first quarter, with most of the decline attributable to Russian and Ukrainian shipments, which fell 31 and 51 percent, respectively. However, the broader impact on inflation and consumer confidence meant that “the real test for the smartphone market will come in the next two quarters, when the economic fallout from the war really starts to be felt.”

The Internet of (Five) Things

1. Tech convertibles fall
Convertible bonds sold by high-flying tech companies last year have crashed. Spotify and Peloton were among a group of companies selling convertible bonds, a type of bond that can be converted into shares, at the top of the market. However, these bonds are now falling in price as the prospect of their stocks reaching the high levels needed for the debt to convert into equity is dimming.

2. Airbnb abandons China
Airbnb will close its China business This summer, after years of trying to crack the market, has been throttled by the impact of Beijing’s tough zero-Covid policy on domestic and international tourism. Lex says Airbnb’s withdrawal gives Meituan a chance. The food delivery giant launched its own space rental platform in 2017.

3. Amazon’s annual slap
become Amazon shareholders challenge companies on board pay, tax transparency, working conditions and unionization on Wednesday, when CEO Andy Jassy heads the e-commerce and cloud-computing giant ahead of its first annual meeting. The $1 trillion tech company is rejecting all 15 shareholder proposals, the most it has faced since 2010.

4. South Korea takes a stand against ‘mad’ crypto leader
Do Kwon, the cheeky 30-year-old behind terraUSD, is now the “most hated man in South Korea” following the collapse of the stablecoin. Kwon’s high-profile backers, global marketing strategy, and impressive social media persona helped draw attention and retail investors. But now many have lost everything. The Money Clinic Podcast talks to a saver who watched in horror as his $7,000 crypto holdings in Luna and Terra collapsed.

5. Digital No-Mad Era
Cristina Criddle tried four days as a digital nomad on the Portuguese island of Madeira, where the village of Ponta do Sol rebranded itself last year as a destination for such working-from-anywhere travelers. She found Tech in Paradise wasn’t all it seemed.

Tech Tools – Logitech MX Mechanical

Logitech has added two new mechanical keyboards to its high-end Master Series peripherals—the Full-Size Keyboard MX mechanics and minimalist MX Mechanical Mini – and MX Master 3S mouse to accompany them. Mechanical typing has three settings that allow you to set your own personal preferences – Tactile Quiet, Clicky, and Linear all have a distinctive feel and sound. Backlit keys light up as your hands approach the keyboard, and a range of effects are offered such as: B. Response lighting, where each time you press a key, it lights up in response. The wireless keyboards require charging with a USB-C cable, but can be powered for up to 15 days on a full charge — or up to 10 months with the backlight off. The keyboards and mouse are available now, with the MX Mechanical costing £169.99, the Mini £149.99 and the mouse £99.

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