Good Evening. On Friday, U.S. stocks rose as investors analyzed a variety of business financial data and considered the potential that Federal Reserve authorities may reduce aggressive rate hikes sooner than anticipated.
The S&P 500 increased by 2.37%, while the Dow Jones increased by 2.47%. The Nasdaq Composite Index increased by 2.31%.
ANOTHER QUATER DOWN
Friday’s pre-market trading saw a 25% decline in shares of the social media platform (SNAP), as third-quarter sales represented the sixth consecutive quarterly decline. Snap continued to blame a slowdown in advertising and changes to Apple’s privacy policies for its operational failures.
- Revenue: $1.13 Billion vs. $1.14 Billion expected
- Adjusted EPS: $0.08 vs. ($0.02) expected
- Daily Active Users: 363 Million vs. 358 Million expected
Going Forward… Snap disclosed that its board of directors has authorized a buyback program, with plans to repurchase up to $500 million of its stock over the next 12 months.CEO Evan Spiegel stated that the company’s increasing number of users “continues to expand our long-term opportunity as we navigate this volatile macroeconomic environment.”
ANOTHER COMPANY TRIES CLOUD GAMING
Netflix (NFLX) is delving deeper into gaming. Earlier this week at TechCrunch Disrupt, vice president of gaming Mike Verdu stated that the company is “seriously exploring a cloud gaming offering.”
Sounds like a similar story, right? Google (GOOG) stated last month that it is discontinuing its cloud gaming service Stadia owing to a lack of users.
The cloud gaming industry is still in its infancy. It necessitates a vast infrastructure, zero latency, and abundant games. Consumers generally tolerate a slight delay when a television program begins, but this is unacceptable for cloud gaming. The smallest amount of lag or sluggishness in your connection might spoil your gaming experience.
Could this be an opportunity for Netflix? If Netflix can pull it off, a cloud gaming option could boost a company that is only now emerging from a post-COVID spiral that drove consumers to flee and stock to plunge 57% over the past year.