Today in the Market (2/6/2024)

Good Morning! On Tuesday, U.S. stocks ended on a positive note, with the NASDAQ finishing in the green by 0.07% in the last hour of trading. The S&P 500 had a roller coaster of a day with an increase of 0.23%, while the Dow Jones was green all day and finished up 0.37%.

A HARD FALL

Snap Inc. (SNAP) fell short of Wall Street’s quarterly revenue expectations, highlighting its ongoing challenges in competing with bigger competitors for digital advertising income. As a result, its shares plummeted by 30%. So let’s see how bad it was!

  • Revenue: $1.36 Billion vs. $1.38 Billion Expected
  • Layoffs: 528 Employess

So why is the market so hard on Snap? Snap and Meta Platforms Inc. saw significant negative impacts due to the modifications made by Apple Inc. in 2021 to its privacy settings, resulting in increased difficulty for marketers in monitoring iPhone users. However, Meta (META) has had a significant recovery, with a notable 25% rise in revenue during the fourth quarter, marking its largest quarterly growth in the last two years, while Snap is still in the process of rebounding.

What does Snap have in store for them? Snapchat’s subscription service, Snapchat+, has already attracted 7 million paying customers and generates an annual revenue run rate of $249 million. This achievement sets Snapchat apart from other social media businesses that have struggled to make money from their members.

DON'T FORGET TO STUDY!

Dartmouth stated that starting with applications for the class of 2029, the school would once again mandate that prospective candidates submit SAT or ACT results. This decision makes Dartmouth the first Ivy League and the most recent top-tier school to reintroduce this traditional requirement. To put this in perspective… Over 600 colleges dropped SAT and ACT prerequisites during the COVID-19 pandemic, with most four-year institutions remaining committed to a test-optional policy.

So why is Dartmouth bringing this requirement back? Recent research has shown that standardized test results have a stronger correlation with college achievement compared to high school grades.  

The big picture. The move made by Dartmouth might serve as an inspiration for other prestigious colleges to adopt a similar course of action. Dartmouth isn’t the only one, Georgetown and MIT have already reverted to their previous policies in the last several years.

 

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