Snapchat crashes
Tech balance sheets dampen sentiment on US stock markets
7/22/2022 10:33 p.m
Several tech company prices are plummeting. The biggest loser is Snapchat operator Snap. According to experts, TikTok, Instagram or YouTube could soon follow. Hard drive seller Seagate also delivers bad news.
Disappointing company numbers from the tech sector have dampened sentiment on Wall Street. Of the Dow Jones Index the defaults gave 0.43 percent to 31,899.29 points after. The broader one S&P 500 fell 0.93 percent to 3961.63 points. The index of the technology exchange Nasdaq slipped by 1.87 percent to 11,834.11 points. Weakening advertising revenue broke the shares of the Snapchat operator Snap a 39.14 percent plunge to its lowest level in more than two years. According to the information, sales increased by 13 percent, but fell short of expectations at $1.11 billion due to fierce competition for advertisers.
The numbers reflected the uncertain economic outlook, commented analyst Ali Mogharabi from the research house Morningstar. Also, they could be harbingers of weak results from rivals like TikTok, Instagram or YouTube. The S&P 500 industry index for communications services fell by more than four percent.
“This could be interpreted as a red flag that profitability is under pressure as the economic environment slows,” said Lindsey Bell, strategist at Ally Invest. Also the US Short Message Service Twitter reported a surprise quarterly loss, blaming the back-and-forth surrounding Elon Musk’s ultimately failed takeover plans and a flagging advertising market. The shares still gained 1.06 percent.
American Express stock soars
In the chip sector, investors worried about a downturn after the hard drive seller Seagate Technology delivered bad news. Shares fell more than 8.11 percent amid production cuts due to weak demand. In the wake of this, the titles of the rival gave Western Digital and the memory chip manufacturer microns up to over six percent.
Thanks to increased sales targets, investors jumped in American Express to. The credit card provider’s shares rose by more than two percent. The company is aiming for growth of 23 to 25 percent instead of 18 to 20 percent thanks to consumers’ continued buying mood. “Some of the rising spending can certainly be attributed to inflation,” said Michael Ashley Schulman, chief investor at money manager Running Point. Some consumers prefer to make larger purchases as wage increases have lagged inflation.