Snap Co., Ltd. (snap)
Snap Inc. stock fell as much as 30% in premarket trading Wednesday after the company missed quarterly revenue estimates.
The report said sales rose 5% to $1.36 billion (about £1.08 billion), but still fell short of expectations of $1.38 billion, according to LSEG data.
Additionally, the Snapchat owner posted adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the first quarter, which was also lower than analysts expected.
Snap, whose stock price nearly doubled last year, is losing about $9 billion in market value following the news.
The company announced earlier this week that it would lay off 528 people, or 10% of its workforce, as it “phasedly invests” in the company's long-term growth.
“On the heels of Mehta's impressive performance, nagging concerns about how Snap was run turned into a crisis of confidence,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Barratt Development (BDEV.L)
Housebuilder Barratt is to merge with rival development company Redrow (RDW.L) to form a combined group to be renamed Barratt Redrow.
The deal will give Redrow shareholders 1.44 new shares in Barratt at a 27.2% premium to last night's closing price, valuing the developer at £2.5bn.
Barratt shares fell nearly 8% on the news, while Redrow rose 13%.
The move comes as the real estate sector is strengthening in response to the recession caused by high interest rates in the UK.
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Upon completion of the acquisition, Redrow shareholders will own approximately 32.8% of the combined group and Barratt shareholders will own approximately 67.2%.
Redrow founder Steve Morgan said Barratt was a housebuilder he had “long admired” and chief executive Matthew Platt said the combined company would be “one of Britain's leading home builders”. It will create builders.”
Meanwhile, Barratt chief executive David Thomas added that the partnership would help build more “high quality” homes.
He said: “We have great respect for Redrow, its overall strategy, its leadership and people, and its quality homes and communities. This is a great opportunity to create a home builder that excels in quality, service and sustainability, building more and more high-quality homes.
“The combined group will leverage the respective strengths of Barratt and Redrow, delivering significant benefits to our people, our supply chain and, most importantly, our customers.”
The companies said the partnership would ultimately lead to savings of at least £90m a year over three years.
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Sainsbury's (SBRY.L)
Sainsbury's has revealed plans to overhaul its supermarkets with a focus on expanding its food space.
In its latest strategy, the UK's second-largest supermarket chain has opened multiple stores to create more space for food and to ensure it offers a wider range of groceries. The company announced that it will reduce its assortment of miscellaneous goods and clothing.
The new plan, dubbed 'Next Level Sainsbury's', aims to cut costs by £1bn over the next three years.
The group added that it would “focus” on areas outside of food, including investing in technology to deliver automation and cost savings, and made further changes to Argos store sites.
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Chief Executive Simon Roberts said: “We look forward to building on what has been the driving force behind our success since 2020. We will continue to build on what has driven our success since 2020. We are determined to become the first choice for food.”
“This means more space to serve food while still providing the general merchandise that our customers want from us. We will continue to grow our volume market share as well as find ways to increase our volume market share.”
It will also improve its loyalty card scheme, Nectar, to offer “personalized, valuable, integrated loyalty and market-leading retail media features.”
Uber (Uber)
Uber posted a full-year operating profit for the first time since it went public on the stock market five years ago.
Operating income for 2023 was $1.11 billion, up from a loss of $1.832 billion in 2022 and better than expected. Sales he increased by 17%. This was due to his 24% increase in ridership in Uber vehicles and an increase in bookings in the lead-up to Christmas.
Total booking value, which includes delivery orders, rides and driver income, rose 22% to $37.6 billion in the last three months of 2023.
Compared to the same period last year, the number of trips and monthly active platform users increased by 24% and 15%, respectively.
CEO Dara Khosrowshahi said: “2023 was a turning point for Uber, proving that we can continue to grow strongly and profitably at scale. “We've grown more and more engaged, and our platform powers an average of nearly 26 million people every day.” This is a trip from last year. ”
Uber expects strong core earnings and gross bookings in the first quarter of this year.
“It was a great quarter for Uber, and it shows that the company's long-term post-pandemic turnaround is finally starting to bear fruit,” said Thomas Monteiro, senior analyst at Investing.com. Ta.
“As we prepare for a more rapid growth environment in the second quarter of this year, especially as our financial position begins to improve, the company is well-positioned to lead the ride-hailing industry in its pursuit of new innovations. It is considered. “
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