Snaps not good enough
Snap’s revenue increased just 13% in Q2, well short of its original 20-25% guidance. Its net loss grew to $422m from $152m in the same period last year. Snap said that brands were slashing digital advertising budgets, plus privacy venezuela cell phone database changes by Apple have made it harder to target advertising and measure the success of campaigns. Snap will “substantially reduce” hiring and revise its strategy. The news sent Snap’s stock plummeting 26% in after-hours trading.
Hot chips. Dutch semiconductor equipment supplier
ASML is seeing extraordinary demand for its chipmaking machines, reporting a record €8.5bn (AU$12.5bn) in bookings and €5.4bn (AU$8bn) in revenue last quarter. China made up 10% of that revenue, but now the US is pushing the Netherlands to ban ASML from selling to China in an attempt to thwart China’s plans to become a world leader in chip production.
One click medicine. Amazon continues on its mission to break into US healthcare, this week announcing plans to acquire One Medical for $3.9bn – its third largest acquisition. One Medical offers telehealth and in-person doctors consultations. Amazon launched its own digital healthcare service, Amazon Care, almost three years ago.
Driving growth. Tesla beat expectations in Q2 with $2.26bn in profit
Total revenue grew 42% YoY to $16.9bn. Automotive margins decreased, impacted by inflation and more competition for battery cells and other EV components – margins were 27.9%, down from 32.9% last quarter and 28.4% a year ago. Cash flows would have actually been negative without the sale of 75% of its Bitcoin position ($936m). More analysis here.