Major United States indexes closed lower on Friday with tech stocks falling sharply after disappointing earnings from Snap and Twitter. The Dow Jones declined 0.43%. The worst performer was Verizon, whose shares plummeted 6.75% after the company posted worse-than-expected second-quarter results. The Nasdaq 100 slumped 1.77% with Lucid Group plunging 8.38% and Meta tumbling 7.59%. The S&P 500 slid 0.93%. SVB Financial Group, which dived 17.15%, led the losses. The euro lost 0.21% against the dollar to sell for 1.02088 at 3:58 pm ET.
Snap shares plunge 38% after disappointing earnings report
Snap shares plunged 38% on Friday, a day after the company’s disappointing earnings report. Year-to-date, the stock dropped by more than 78%, and year-over-year, more than 84%. The company declared a net loss of $422 million, 178% up from last year’s loss. “We are not satisfied with the results we are delivering, regardless of the current headwinds,” the company said. Operating loss stood at $401 million, while diluted net loss per share attributable to common stockholders came in at $0.26 in the three-month period that ended on June 30, 2022. Snap’s shares were down by 38.69% at 12:35 pm ET to sell for $10.03.
Twitter sees $344M Q2 operating loss amid Musk deal uncertainty
Twitter Inc. reported on Friday that its revenue remained mostly unchanged in the second quarter of 2022 at $1.18 billion, amid uncertainties related to the pending takeover by billionaire Elon Musk. The platform’s average monetizable daily active usage (mDAU) increased by 16.6% to 237.8 million, with averaging US mDAU rising 14.7% to 41.5 million. Twitter’s costs and expenses soared 31% to $1.52 billion, while on the other hand, operating loss shrank 29% to $344 million. Twitter also saw a net loss of $270 million, or a diluted loss per share of $0.35. “Given the pending acquisition of Twitter by an affiliate of Elon Musk, we will not host an earnings conference call, issue a shareholder letter, or provide financial guidance in conjunction with our second quarter 2022 earnings release,” the report concluded.
Private equity investment giant The Blackstone Group Inc. revealed on Thursday that its revenue in the second trimester of fiscal 2022 came in at $629 million, plunging from $5.3 billion recorded a year prior. Net loss attributable to Blackstone in the second quarter of 2022 stood at $29.4 million, or $0.04 per share, in comparison to the net income of $1.31 billion, or $1.82 per share, recorded in the same period of 2021. Nevertheless, Blackstone reported that its assets under management increased to $940.8 billion, jumping 38% year over year. It declared a quarterly dividend of $1.27 per share, an increase from $0.70 recorded in the same period a year earlier. “Blackstone’s flagship strategies again outperformed public markets and our investors entrusted us with $88 billion of inflows, which represented the second highest quarter of inflows in our 36-year history,” Blackstone Chairman and CEO Stephen A. Schwarzman. Shares of Blackstone fell 2.06% to $99.02 in premarket trading following the announcement. NN: Bottom Line US is already in a recession AND its about to get a lot worse….. Next week is Earnings week on steroids with 225 companies reporting… Add CPI and FED rate decision we have a lot on the line in our NASDAQ 100 trade….. Lady luck do not fail me now…. Prepare for a wipe out….. We should have bought lottery tickets instead, because the prize in the Mega Millions jackpot stands at $660M. Odds are 300 million to 1….. much better then this trade.