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Snap plunges 35pc after results as US stocks open mixed


In this file photo taken on March 02, 2017, traders work on the floor during the Snap Inc. IPO at the New York Stock Exchange in New York. - Snap shares sank more than 30 percent early on July 22, 2022, following disappointing results. — AFP pic

In this file photo taken on March 02, 2017, traders work on the floor during the Snap Inc. IPO at the New York Stock Exchange in New York. – Snap shares sank more than 30 percent early on July 22, 2022, following disappointing results. — AFP pic

Friday, 22 Jul 2022 11:18 PM MYT

NEW YORK, July 22 — Snap shares sank more than 30 percent early Friday following disappointing results as US stocks were mixed in the final session of a positive trading week.

About 30 minutes into trading, Snapchat’s parent company was down 35.4 percent as it pointed to a punishing confluence of increased competition, slowing growth of its revenue, “upended” advertising industry standards and macroeconomic woes in reporting that its quarterly loss nearly tripled to US$422 million.

Stocks have risen the last three sessions, generating hopes that the market may have pivoted after a bruising first half of 2022.

But analysts caution there are still several key earnings reports to come, as well as next week’s Federal Reserve meeting and influential economic releases such as a reading of second-quarter US growth.

The Dow Jones Industrial Average was up 0.1 percent at 32,063.01.

The broad-based S&P 500 shed 0.1 percent to 3,994.13, while the tech-rich Nasdaq Composite Index fell 0.4 percent to 12,009.75.

Among other companies reporting results, American Express gained 4.2 percent and Schlumberger won 6.0 percent, while Mattel dropped 2.4 percent. — AFP



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