Snap Inc’s stock plunged in after-hours trading on Tuesday after the company reported a disastrous third-quarter report that revealed widespread weakness throughout the business just nine months after its splashy debut on the public markets.
The company reported smaller than expected user growth, a 60% drop in advertising rates, and a hefty charge due to an overambitious entry into the hardware market.
To read more about the company’s disastrous Q3 earnings, click here.
In other news:
The company is redesigning its app after CEO Evan Spiegel admitted it’s too difficult to use. Spiegel said that users have told him the Snapchat app is “difficult to understand” and “hard to use.”
Speaking of Snapchat, the company is winning the wrong kind of business. The company was forced to bring in more low- paying advertisers following its IPO, which may have hurt its ability to command high prices in the future.
But it’s not all bad news for Snapchat: China’s investment holding giant Tencent is taking a 10% stake in Snap. The news broke a day after Snap’s third-quarter earnings release, in which the company reported numbers that missed Wall Street’s expectations.
Twitter is turning on longer 280-character tweets for everyone. The change comes after Twitter has tested the expanded limit with a subset of its users for the past several weeks.
Not a single NFL sponsor or pizza chain will say it’s losing sales after players’ national anthem protests — except Papa John’s. 17 NFL sponsors and three pizza brands we contacted failed to confirm similar struggles.
Uber’s new CEO says he’s ditching a practice that turned employees into “a–holes.” Dara Khosrowshahi has published a new list of corporate values for the company.
Disney has ended its media blackout of the Los Angeles Times after a huge backlash. Major film critic groups denounced Disney and banned the studio from award show consideration until it publicly announced the reversal of its original decision.
Wendy’s misses across the board and guides lower. Wendy’s missed on both the top and bottom lines in the third quarter, as hurricanes hurt sales in Florida and Texas.
Amazon has been quietly launching sportswear brands all year. It launched a high-performance brand, Peak Velocity, in October, as well as two other brands earlier this year, which make it a bona fide sportswear maker.
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