Silicon Valley’s making money, sure, but couldn’t it be making *MORE* money? – Do Not Read Until Monday
Avoid making your weekend like these earnings calls – a mixed bag – and Do Not Read Until Monday.
Silicon Valley Disappoints Yet Again (but for, like, making money)
And this time it’s not for turning us into like-hunting husks of humanity, it’s not even for a massive sexual misconduct cover-up, fostering a ‘demoralizing’ climate or for still not having its act together for political ads. This week, it’s for a series of lackluster financial performances and forecasts.
(C’mon, I own stocks now, I got priorities.)
First off, Alphabet, which is basically just Google arbitrarily calling themselves something else so you forget they own everything, performed under expectations for revenue. During the quarter, it shuttered Google+ (shrugs) because of a huge privacy breach (still kinda shrugging), and caught some heat for pandering to China with a censored search engine and over alleged political biases. It exceeded profit expectations, but the market performance still tanked.
Amazon shares also stumbled following its earnings announcement, based on lowered expectations for the upcoming holiday season and underperformance in web services. However, it’s worth noting that its ad business has experienced significant growth – up 123 percent year over year. Projections suggest this will continue to be a growth area for the company, making up the difference of slowdowns in other areas.
Other notable tech players also came away with a mixed bag for Q3, including Snapchat and Twitter. Snapchat reported another decline in daily active users, down 2 million to 186 million, something it attributed to user dissatisfaction with its Android app. Other news surrounding the app is reports it’s no longer the app of choice for teens – losing that title to Instagram – and its efforts to replace the influential Imran Khan – both of which could impact performance.
Twitter, meanwhile, saw a decline of 9 million monthly active users, which sounds horrible without context, but is actually result of efforts to ‘clean up’ the platform. However, daily users are up, and it actually posted profit for the fourth consecutive quarter.
Who’s hyping AR this week?
Snap is leaning in pretty heavy actually changing its personnel structure to devote more efforts to augmented reality, a chief differentiator of its product, but one where competition has heated up considerably.
And yes, much of that has come from Facebook (though there’s of course Apple and Google in the fray). Facebook, for its part, did the equivalent of shrug and ‘yeah, screw it, why not?’ when asked if it would be developing AR glasses.
For slightly different reasons, Lyft also had some AR rumblings this week, snapping up a start-up to aid with its self-driving car efforts.
Odds + The End
- WhatsApp blasts from the past, tap to send stickers in-app.
- If you have no idea what you would do with a foldable smart phone, you’re apparently not the only one.
- Spotify, the streaming music app fending off alternatives from almost every tech heavyweight imaginable, will soon return to Roku, the streaming hardware company fending off alternatives from almost every tech heavyweight available. Sounds like a good match.
- Like your smart phone? Why not get a second, smaller one November 2?
Seriously though, everyone seems to be hating on Palm, but it’s a good idea with a miserable price tag.
- YouTube is catching up with Twitch for streaming.
- Google will (finally) get a bit more up front with privacy settings.
- It only took 14 years: Finally, Facebook caught up with MySpace on profile songs.
- And it’s helping you get more of the Beto/Cruz content you crave.
- It’s also looking to drive a smaller app, TikTok, out of business by creating a karaoke app. I mean, c’mon, it’s Facebook.
- Patreon and Reddit have teamed to help creators get paid.
- Twitter banned more Alex Jones-related accounts.
- Netflix is looking for a $2 billion loan for financing new content.
- October 26, 2018