Snap Shares Plunge and Tesla Layoffs Loom | Bloomberg Technology

10 Feb 2024 (10 months ago)

Snap

Snap's stock fell due to disappointing earnings and a challenging operating environment.
Jasmine Enberg, an Insider Intelligence analyst, discussed Snap's lack of scale compared to rivals, its challenges in rebounding systems, and its repositioning as an anti-social media platform.
The conflict in the Middle East impacted Snap's ad business, but it also reflects the company's larger long-standing challenges.

Uber reported strong bookings and food delivery during the holiday period, but the stock is down due to concerns about maintaining growth.
Uber's delivery business grew by 17% year-on-year and is accelerating.
The company is focused on providing customers with choice, reliability, and affordability.
Uber's grocery business is growing rapidly and is expected to surpass the online food business in terms of total size.
Uber is seeing growth in mobility across the globe, with Latin America and Asia Pacific being standout regions.
The company is excited about the potential of the India market, where it is seeing substantial growth rates.
Uber's freight business is cyclical and is currently experiencing stabilization in the overall freight industry.
Uber is focused on developing new products and services that address specific problems and provide a unique user experience.
Uber is continuing to push for the adoption of electric vehicles (EEEVs) despite reports of falling consumer demand and challenges with charging infrastructure.
Uber has over 120,000 drivers using EEEVs globally and has completed more than 300 million trips in EVs.
Uber is shutting down its standalone alcohol delivery business, Uber Eats, and will instead focus on integrating alcohol delivery within the Uber Eats platform.

Tesla staff are bracing for potential job cuts as managers are asked to assess the criticality of each employee's role during performance reviews.
Tesla has so far avoided the layoffs that have affected other tech companies, but it is unclear if the performance reviews indicate widespread layoffs or a focus on cost savings.
Tesla is still aggressively hiring in certain areas like Dojo, Mega Pack, and Payment Systems, while considering headcount reduction in other departments.
Tesla regularly conducts performance reviews every six months, known as "rank and yank," to maintain high performance standards.
Tesla's energy business, particularly the production of Mega Packs at the Lathrop factory, is a significant growth driver for the company.

Advertisers may be hesitant to associate their brands with Tucker Carlson's interview with Russian President Vladimir Putin on Ask due to Putin's history of suppressing critical journalism.
Ask's new shows featuring controversial hosts like Tucker Carlson may not immediately attract advertisers, as many brands have already left the platform.
Blue Sky, Jack Dorsey's decentralized social media platform, has emerged as an alternative to Twitter and is gaining traction among users who feel uncomfortable using Twitter.
Despite the rise of alternatives like Blue Sky, Twitter remains a strong platform for certain types of news, especially sports-related information.
ESPN, Fox, and Warner Bros. Discovery are collaborating to launch a sports-focused streaming service, giving them control over content distribution as more people cut the cord.
Disney will continue with its own ESPN offering despite the potential for cannibalization, while Nelson's white paper suggests ESPN should be sold off or partnered with Netflix.
The move by the big media companies is seen as a defensive strategy to ensure they remain competitive in the bidding for sports rights, which are expected to increase significantly in the future.

TSMC, the world's largest chip contract manufacturer, saw an 8% increase in revenue in January due to strong demand for AI chips.
The head of ByteDance's China operations is stepping down, and the company will not appoint a successor, indicating a shift in focus.
Alibaba reported lower-than-expected sales due to a weaker e-commerce business but approved a $25 billion increase in its share purchase program to boost investor confidence.
Tendril, a company that aggregates and analyzes data from streetlights, is showing promising performance with a 2% increase in stock price and a 6.2% gain at one point during the session.
Kindred Consulting business grew by 14% for the year.