Click here: The Weekly Beacon – May 27 2022
We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Tech Stocks, Tech Melt Down, Social Media Stocks, Twitter Stock, Snapchat, Facebook, Pinterest, Earnings, Q2, Projections, Desperation, Finding the Bottom, ARKK, Cathie Wood, GDP Growth, Craziness, warren Buffett, CNN, Fear and Greed Index, WEF, climate Change, Private Jets, Natural Gas, Expanding Market, Supply-Demand, Energy Sector.
Social Media Wipe Out
Tuesday was a horrible day for social media companies. It all started after Snapchat’s CEO warned the company would miss revenue and earnings estimates. He also confirmed the company would slow hiring.
Before this news, Snapchat shares were already down over 50% year to date.
After this announcement, shares dropped another 40%.
As of lunchtime on Tuesday, Snapchat shares were down 70% year to date. The app might have high utilization and loyal users but the generation who grew up with the app is slowly aging and using the app much less. Other social media apps seem to grasp younger generations much better. We are not saying users will drop, we are saying advertisers will due to less usage.
Regardless of how you feel about Snapchat, the letter written by the CEO to employees was quite interesting: