Wall Street Excited About Snap’s Quarterly Results

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Social media company Snap gained a lot of market value on Friday at the start of trading in New York. Investors reacted enthusiastically to the company’s strong quarterly results. Twitter and chip group Intel has also looked at the books.

 

Twitter was also popular, but the world’s largest semiconductor manufacturer was disappointed somewhat and was, therefore, one of the losers on Wall Street.

The share of Twitter rose more than 1 percent, and Snap was even 24 percent higher in the first trading minutes. Twitter achieved almost three quarters more revenue in the second quarter than a year earlier. This was mainly because advertisers found the site with mini-blogs more attractive than before. In addition, more regular users were added to Twitter. Snap, the company behind the Snapchat app, in turn, recorded more than twice as much revenue as in the same quarter last year. Snap also managed to attract more users to the app and also made more money from advertisers.

Intel lost more than 4 percent. Despite the global scarcity of chips, the chipmaker recorded a slightly lower turnover in the second quarter than a year earlier. The company sold more chips for computers and laptops, but the division that supplies parts for data centres struggled with sales.

Despite the rising infection rates worldwide, the mood among American investors is good due to different variants of the coronavirus. In addition, the many quarterly figures of companies mean that investors are less concerned with the virus concerns and more looking at companies’ economic prospects. Shortly after the opening bell, the Dow-Jones index was 0.6 percent higher at 35,028 points. The broad S&P 500 rose 0.4 percent to 4386 points, and the technology exchange Nasdaq gained 0.1 percent to 14,704 points.

Other major companies that reported figures included credit card company American Express (up 4 percent), oil services firm Schlumberger (up 1.9 percent) and industrial group Honeywell (down 1.4 percent). In addition, Kimberly-Clark, the company behind, among other things, Kleenex tissues, issued a profit warning. This shocked investors and caused the stock to fall more than 3 percent.

In addition, pharmaceutical companies Pfizer and BioNTech announced that they would supply an additional 200 million corona vaccines to the United States. Pfizer was slightly higher, while the US shares of partner BioNTech gained more than 1 percent. Moderna rose almost 5 percent after the European Medicines Authority EMA approved that company’s corona vaccine for young people aged 12 to 17 years.

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