Investors never seem to remember that Snap Inc. (SNAP) has serious business headwinds. Shares rose from below $9 to $17.45 before Snap posted poor Q4 results.
Snap earned 8 cents a share on revenue growing by 5% Y/Y to 41.36 billion. SNAP stock fell by 32.6% in after-hours trade. The firm forecasts revenue ranging between $1.095 million to $1.135 million. This implies revenue growth of between 11% - 15%. SNAP stock is unfriendly to investors after the firm spent $1.3 billion in share-based compensation in 2023.
Warner Bros. Discovery (WBD) held the $10 support line since Oct. 2023. The firm will collaborate with Fox (FOX, FOXA) and Walt Disney (DIS) in a joint venture streaming platform. They will share sports assets, offering the platform through their app. The equal ownership partnership does not solve fundamental issues. The firms will need to bid against Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG) for sports rights. These are among the magnificent 7 companies that have vastly more cash on hand.
The three firms may come out ahead if they can share the heavy costs and negotiate better pricing for sports rights.
In the Far East, Alibaba’s (BABA) quarterly results will move Chinese tech stocks. They rose sharply higher after China’s regulator vowed to stabilize markets. President Xi is reportedly set to discuss the Chinese stock market with financial regulators.
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