Wall Street Today | Facebook and Google pummeled with Snap after it warns on ads

Moomoo Recap US wrote a column · Oct 22, 2021 07:45

Wall Street Today | Facebook and Google pummeled with Snap after it warns on ads

Asian stocks set for mixed start; Treasuries slide

Asian stocks looked set for a mixed start Friday as traders weigh the latest earnings.

Futures slid for Japan, were steady for Australia and climbed for Hong Kong. The $S&P 500 Index (.SPX.US)$edged up to a record but the mood soured after the cash session when $Snap Inc (SNAP.US)$-- owner of the Snapchat app -- tumbled on disappointing earnings, hurting other technology shares in late trading. U.S. contracts were in the red.

Axie Infinity, the crypto game that's grown over 200x this year alone

Bitcoin just hit an all-time high and crypto mania is in full swing. One of this year's big winners has to be Axie Infinity, a blockchain-based game, whose token AXS has surged over 200x just since the start of the year. Axie is a pioneer of what's come to be known as a "play to earn" model, whereby participants who play the game can actually make money. Its popularity, for example, has exploded in the Philippines, where numerous people are making a living from it.

First bitcoin ETF is already in danger of breaching a limit on futures contracts

Just days after launch, the first U.S. Bitcoin futures exchange-traded fund risks becoming too popular for its own good.

The $ProShares Bitcoin ETF (BITO.US)$is already on track to breach a limit on the number of futures contracts it is permitted to hold by the Chicago Mercantile Exchange, according to data compiled by Bloomberg. After two days trading BITO owns nearly 1,900 contracts for October, and CME rules cap the number of front-month contracts one entity can own to 2,000.

Facebook and Alphabet pummeled after Snap warns on ads

A collapse in shares of Snap dragged technology companies exposed to digital advertising lower late on Thursday after the owner of the Snapchat app warned that customers are cutting back on ad spending.

$Meta Platforms (FB.US)$and $Twitter (Delisted) (TWTR.US)$were among the biggest decliners, with each at one point sinking more than 6% in postmarket trading. $Alphabet-A (GOOGL.US)$slid 2.8%.

Snap plummets 22% after missing on revenue expectations

$Snap Inc (SNAP.US)$reported its third-quarter earnings on Thursday, missing revenue expectations after $Apple (AAPL.US)$'s iPhone privacy changes disrupted its advertising business.

The company also warned that global supply chain interruptions and labor shortages reduces the "short-term appetite to generate additional customer demand through advertising."

Shares of Trump-linked SPAC close up 350% following news of social media deal

The stock of SPAC company $Digital World Acquisition Corp (DWAC.US)$skyrocketed on extremely heavy trading volume after news of a merger that would launch former President Donald Trump's planned social media platform.

DWAC's stock surged 357% Thursday and trading was halted multiple times due to volatility. DWAC was among the top 10 most popular names on Reddit's WallStreetBets chatroom, even exceeding meme stock $GameStop (GME.US)$'s mentions.

Intel shares fall after component shortages hurt PC chip business

$Intel (INTC.US)$fell more than 8% in extended trading on Thursday. The semiconductor company is in a period of massive capital expenditure as it spends $20 billion this year, including on a new chip foundry in Arizona.

Intel's largest business, its client computing group, was down 2% year-over-year to $9.7 billion. That includes PC chip revenue.

WeWork shares jump more than 13% in public markets debut after SPAC merger

Shares of $WeWork (WE.US)$closed up more than 13% Thursday after the company went public through a special purpose acquisition company more than two years after its failed IPO. The office startup halted initial plans for an IPO in 2019 after investors raised concerns over its business model and its founder and then-CEO Adam Neumann.

The company was valued at $9 billion earlier this year, a sharp drop from the $47 billion valuation from SoftBank Group in 2019.

Source: Bloomberg, WSJ, CNBC

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more