Black Swan Street: Stock Market Weekly (Aug 5-Aug 9 2024)

Welcome to Black Swan Street!

Welcome back!! It’s @KeatonInglis here with another edition of Black Swan Street…

Let’s get into it:

• Snapchat Can’t Seem to Have a Good Quarter📉

• The Swan’s Selections🦢

• In Other News🗞️

• This Week Upcoming In The Stock Market🔮

Today’s edition is sponsored by Rainbook, find out if you’re overpaying your financial advisor!

Read time: 4 minutes

Ohhhh Snap📉

Snapchat, just dropped its Q2 2024 numbers:

The Good Stuff: Snap's revenue jumped 16% to a cool $1.237 billion. They're raking in more daily users (up 9% to 432 million) and doubled their active advertisers. Plus, they've got over 850 million monthly users now. Their net loss shrunk by 34%, and their adjusted EBITDA shot up by a whopping 243%. On paper, things are looking up!

The Not-So-Good Stuff: Here's where it gets messy. Despite all that good news, Snap's stock took a nosedive, plummeting nearly 25% in morning trading.

The Crystal Ball Problem: Snap's forecast for Q3 2024 has investors sweating. They're predicting slower revenue growth, which has everyone wondering if they can keep up with the big dogs in the social media world.

The Big Picture: So, what's the takeaway? Snap's doing better in many ways - more users, more advertisers, less loss. But in the cut-throat world of tech stocks, it's not just about how you're doing now; it's about how you think you'll do tomorrow. And right now, Snap's tomorrow isn't looking as bright as investors hoped.

In the end, it's a classic case of "good news, but..." Snap's growing, but not fast enough for Wall Street's liking.

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The Swan’s Selections🦢

🛍️Amazon deals let shoppers buy products on TikTok, Pinterest: This move expands Amazon's presence in the growing social commerce space, following similar deals with Meta and Snap. For TikTok, which launched its own e-commerce operation last year, and Pinterest, which already collaborates with Amazon on ad inventory, these partnerships promise to enhance their shopping capabilities.

💰ETFs smash previous record for monthly flows in July: July saw investors go wild for ETFs, pumping in a whopping $195 billion globally - the most ever in a single month. The U.S. was especially hot, with $124 billion flowing into U.S.-listed ETFs.

📺Paramount takes a huge hit: Paramount's shaking things up big time. They just took a $6 billion hit on their cable networks and are giving the boot to 15% of their U.S. staff - that's 2,000 folks out of a job. Their streaming biz finally made some money for the first time in ages, and they beat what Wall Street thought they'd make. Investors liked that, bumping the stock up 5% after hours. Still, Paramount's had a rough year, with their stock down by almost a third. Looks like they're scrambling to keep up as everyone ditches cable for streaming.

In Other News🗞

• US unemployment jumped to a three-year high (CNBC)

• Goldman lifted US recession risk odds from 15% to 25% (BBG)

• Big Tech is failing to convince that AI is paying off (BBG)

• A US judge ruled Google's search engine is an illegal monopoly (RT)

• Musk revived a lawsuit against OpenAI and CEO Sam Altman (CNBC)

• OpenAI co-founder John Schulman joined rival Anthropic (RT)

• Traders piled into then pulled Treasury longs at fastest rate in 42 years (BBG)

• Musk's X sued firms over 'illegal' advertising boycott (WSJ)

• Lumen stock is up 500% QTD on AI-driven FCF outlook (RT)

• US 30-year mortgage rates dropped to a 15-month low (RT)

• Rich Barton resigned as Zillow CEO (BBG)

• Nasdaq is weighing stricter delisting rules for penny stocks (RT)

• Trump wants presidents to have say in Fed rate policy (BBG)

This Week Upcoming in the Stock Market🔮

Earnings Calendar This Week:

Economic Calendar This Week:

The Wrap-Up🔄

🎊🎉 That’s it for today 🎉🎊

Thank you again to our sponsor Rainbook

Per usual, let us know what you thought!!⬇️