{"id":64538,"date":"2022-10-21T09:03:19","date_gmt":"2022-10-21T13:03:19","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64538"},"modified":"2022-10-21T09:03:19","modified_gmt":"2022-10-21T13:03:19","slug":"coffee-with-greta-social-media-stocks-slide","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/10\/21\/coffee-with-greta-social-media-stocks-slide\/","title":{"rendered":"Coffee With Greta: Social Media Stocks Slide After SNAP\u2019s Q3 Miss"},"content":{"rendered":"<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">-200 (-0.7%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">-27 (-0.7%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">-133 (-1.3%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are slipping as traders digest the latest batch of earnings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Snap Plunges on Revenue Miss<\/span><\/h2>\n<p><b>Snap Inc <\/b><span style=\"font-weight: 400;\">(SNAP) shares are plunging 28% ahead of the open after missing Q3 revenue expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EPS: $0.08 vs a small loss expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $1.13 billion vs $1.14 billion expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Global Daily Active Users: 363 million vs 358.2 million expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Revenue was up just 6% year over year, the first single-digit growth since Snap went public in 2017.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even as daily active users rose 19% compared to a year ago, average revenue per user dropped 11%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In its <\/span><a href=\"https:\/\/s25.q4cdn.com\/442043304\/files\/doc_financials\/2022\/q3\/Snap-Inc.-Q3-2022-Investor-Letter-(10.20.2022).pdf\"><span style=\"font-weight: 400;\">letter to investors<\/span><\/a><span style=\"font-weight: 400;\">, the company said it is struggling with reduced spending from advertisers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The letter said, \u201cWe 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company declined to give Q4 guidance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Snap\u2019s revenue miss is dragging down other stocks in premarket trade with <\/span><b>Pinterest <\/b><span style=\"font-weight: 400;\">(PINS) tumbling 8.2%, <\/span><b>Meta <\/b><span style=\"font-weight: 400;\">(META) down 4%, and <\/span><b>Alphabet <\/b><span style=\"font-weight: 400;\">(GOOGL) falling 2%.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">American Express Slips Despite Earnings Beat<\/span><\/h2>\n<p><b>American Express <\/b><span style=\"font-weight: 400;\">(AXP) shares are falling 4.8% in premarket trade despite beating Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the credit card company\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EPS $2.47 vs $2.40 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $13.56 billion vs $13.52 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Card-member spending jumped 21% in the quarter, with travel spending surging 57%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">American Express built up its loan loss reserves by $387 million in anticipation of a weakening economy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company hiked its full-year EPS forecast to $9.25 to $9.65.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Treasury Yields Extend Rally<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Treasury yields are up again today with the 10-year hitting a fresh 14-year high.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 10-year yield is up 6 basis points to 4.3% while the 2-year yield is up just about 1 basis point to 4.61%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The recent rally in yields comes amid ramped-up concerns about a recession.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Philadelphia Fed President Patrick Harker said in a speech Thursday, \u201cWe are going to keep raising rates for a while. Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fed Governor Lisa Cooke echoed those comments, saying inflation is \u201ctoo high\u201d and the Fed will continue rate hikes \u201cuntil the job is done.\u201d<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Oil Prices Steady\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Oil prices are flat today as concerns about higher interest rates offset hopes of higher Chinese demand and production cuts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">West Texas Intermediate crude futures are down 0.1% to $84 bbl while Brent crude futures are slipping 0.1% to $92 bbl.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Several Fed officials made hawkish comments this week, tamping down optimism about increased demand in China as the country loosens Covid restrictions.\u00a0\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Key Earnings Next Week<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Several mega-cap names are set to report Q3 results next week, here\u2019s a look at the key reports on the calendar:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tuesday AM: <\/span><b>Coca-Cola <\/b><span style=\"font-weight: 400;\">(KO), <\/span><b>General Electric <\/b><span style=\"font-weight: 400;\">(GE), <\/span><b>UPS <\/b><span style=\"font-weight: 400;\">(UPS), <\/span><b>General Motors <\/b><span style=\"font-weight: 400;\">(GM), <\/span><b>3M <\/b><span style=\"font-weight: 400;\">(MMM)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tuesday PM: <\/span><b>Microsoft <\/b><span style=\"font-weight: 400;\">(MSFT), <\/span><b>Alphabet <\/b><span style=\"font-weight: 400;\">(GOOGL), <\/span><b>Twitter <\/b><span style=\"font-weight: 400;\">(TWTR)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wednesday AM: <\/span><b>Boeing <\/b><span style=\"font-weight: 400;\">(BA)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wednesday PM: <\/span><b>Meta <\/b><span style=\"font-weight: 400;\">(META), <\/span><b>Ford <\/b><span style=\"font-weight: 400;\">(F)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Thursday AM: <\/span><b>Caterpillar <\/b><span style=\"font-weight: 400;\">(CAT), <\/span><b>Shopify <\/b><span style=\"font-weight: 400;\">(SHOP), <\/span><b>Southwest Airlines <\/b><span style=\"font-weight: 400;\">(LUV)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Thursday PM: <\/span><b>Apple <\/b><span style=\"font-weight: 400;\">(AAPL), <\/span><b>Amazon <\/b><span style=\"font-weight: 400;\">(AMZN), <\/span><b>Pinterest <\/b><span style=\"font-weight: 400;\">(PINS)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Friday AM: <\/span><b>Exxon Mobil <\/b><span style=\"font-weight: 400;\">(XOM), <\/span><b>Chevron <\/b><span style=\"font-weight: 400;\">(CVX)<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>DJIA Futures: -200 (-0.7%) SPX Futures: -27 (-0.7%) NASDAQ Futures: -133 (-1.3%) Good morning friends! Futures are slipping as traders digest the latest batch of earnings. Let\u2019s get right to it! Snap Plunges on Revenue Miss Snap Inc (SNAP) shares are plunging 28% ahead of the open after missing Q3 revenue expectations.\u00a0 Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 expectations: EPS: $0.08 vs a small loss expected Revenue: $1.13 billion vs $1.14 billion expected Global Daily Active Users: 363 million vs 358.2 million expected Revenue was up just 6% year over year, the first single-digit growth since Snap went public in 2017. Even as daily active users rose 19% compared to a year ago, average revenue per user dropped 11%.\u00a0 In its letter to investors, the company said it is struggling with reduced spending from advertisers.\u00a0 The letter said, \u201cWe 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. The company declined to give Q4 guidance. Snap\u2019s revenue miss is dragging down other stocks in premarket trade with Pinterest (PINS) tumbling 8.2%, Meta (META) down 4%, and Alphabet (GOOGL) falling 2%.\u00a0 American Express Slips Despite Earnings Beat American Express (AXP) shares are falling 4.8% in premarket trade despite beating Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the credit card company\u2019s results compared to analysts\u2019 expectations: EPS $2.47 vs $2.40 expected Revenue: $13.56 billion vs $13.52 billion expected Card-member spending jumped 21% in the quarter, with travel spending surging 57%.\u00a0 American Express built up its loan loss reserves by $387 million in anticipation of a weakening economy.\u00a0 The company hiked its full-year EPS forecast to $9.25 to $9.65.\u00a0 Treasury Yields Extend Rally Treasury yields are up again today with the 10-year hitting a fresh 14-year high.\u00a0 The 10-year yield is up 6 basis points to 4.3% while the 2-year yield is up just about 1 basis point to 4.61%. The recent rally in yields comes amid ramped-up concerns about a recession. Philadelphia Fed President Patrick Harker said in a speech Thursday, \u201cWe are going to keep raising rates for a while. Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year.\u201d Fed Governor Lisa Cooke echoed those comments, saying inflation is \u201ctoo high\u201d and the Fed will continue rate hikes \u201cuntil the job is done.\u201d Oil Prices Steady\u00a0 Oil prices are flat today as concerns about higher interest rates offset hopes of higher Chinese demand and production cuts.\u00a0 West Texas Intermediate crude futures are down 0.1% to $84 bbl while Brent crude futures are slipping 0.1% to $92 bbl.\u00a0 Several Fed officials made hawkish comments this week, tamping down optimism about increased demand in China as the country loosens Covid restrictions.\u00a0\u00a0 Key Earnings Next Week Several mega-cap names are set to report Q3 results next week, here\u2019s a look at the key reports on the calendar: Tuesday AM: Coca-Cola (KO), General Electric (GE), UPS (UPS), General Motors (GM), 3M (MMM) Tuesday PM: Microsoft (MSFT), Alphabet (GOOGL), Twitter (TWTR) Wednesday AM: Boeing (BA) Wednesday PM: Meta (META), Ford (F) Thursday AM: Caterpillar (CAT), Shopify (SHOP), Southwest Airlines (LUV) Thursday PM: Apple (AAPL), Amazon (AMZN), Pinterest (PINS) Friday AM: Exxon Mobil (XOM), Chevron (CVX)<\/p>\n","protected":false},"author":41,"featured_media":64541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=64538"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64538\/revisions"}],"predecessor-version":[{"id":64543,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64538\/revisions\/64543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64541"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}