SNAP Inc. Share Price Crashes 30%, BHP CEO Optimistic About China’s Economic Prospects, Fed’s Hawkishness
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Summary:
- Snap’s Q3 earning results missed market expectations.
- BHP is optimistic about China's growth prospects.
- Fed remains hawkish in interest rate hiking cycle.
SNAP stock crashing
After another difficult quarter, the stock price for Snap is still declining. In pre-market trading on Friday, shares of the social networking platform fell 25% as third quarter sales showed a fifth consecutive quarterly slowdown. Additionally, profits were disappointing, as Snap continued to attribute the poor execution to a slowdown in advertising and changes to Apple's privacy policies. The business issued a warning that the fourth-quarter sales trends would deteriorate.
Snap Inc. Q3 earnings missed market expectations. Average Revenue Per User: $3.11 vs. $3.17 forecast, Daily Active Users: 363 million vs. 358 million estimate, Adjusted EPS: $0.08 vs. projected loss of $0.02, Net Sales: $1.13 billion vs. $1.14 billion estimate Guidance: Fourth-quarter revenue growth was "flat."
$SNAP shares are still struggling in pre-market today after a dismal Q3 report. The stock is down almost 30% in pre-market, surpassing analyst estimates of a 23% swing. https://t.co/RD3FDZrEAT pic.twitter.com/j1CF7GKcTH
— Yahoo Finance Plus (@yfinanceplus) October 21, 2022
BHP CEO optimistic about future production
CEO of BHP Group Mike Henry stated on Friday that despite uncertainty, he was "cautiously optimistic" about China's economic prospects.
The leader of the largest listed mining firm in the world stated in a pre-recorded interview at the FT Mining Summit in London: "There is uncertainty in China, but in our judgment, China is still going to give a bit of stability or underpinning to global economic development over the next 12 months."
With more than 250 million tonnes mined in the fiscal year ending in June, BHP is a leading producer of iron ore, which is used to make steel used in the construction industry. According to Henry, the multinational mining corporation is now looking into ways to boost iron ore productivity above 300 million tonnes annually.
BHP chief pledges ‘disciplined’ M&A stance despite bulging war chest https://t.co/qoBC6jukwA
— Financial Times (@FT) October 21, 2022
Federal Reserve to remain hawkish
In general, the US dollar is higher so far today as markets assess the week before the weekend. After soaring once further in the US session, Treasury rates across the curve are a few basis points higher in Asian trade. Today's 4.27% yield on the benchmark 10-year bond was the highest since 2008.
âš ï¸BREAKING:
— Investing.com (@Investingcom) October 21, 2022
*FED SET TO RAISE RATES BY 0.75 POINT AND DEBATE SIZE OF FUTURE HIKES - WSJ$DIA $SPY $QQQ 🇺🇸 🇺🇸 pic.twitter.com/eWNuHX0skh
Sources: finance.yahoo.com, twitter.com, dailyfx.com
