(KRON) – On today’s Winners & Losers, KRON4 financial expert Rob Black discusses rekindled worries of a recession, Memorial Day weekend travel plans, and shares of Snap plunging 38%.
Loser: Stock Market Falls as Snap Warns Has Rekindled Recession Worries
The stock market was falling after Snap blamed the economy when it lowered its sales and profit guidance for the current quarter, rekindling worries about a recession.
Snap said “the macroeconomic environment has deteriorated further and faster than anticipated,” the company said in the filing.
Christine Lagarde, president of the European Central Bank, said cryptocurrency is worth nothing.
Abercrombie & Fitch shares fell 25% after the retailer offered a weak outlook.
Walmart is expanding its drone-delivery service to reach 4 million in parts of Arizona, Arkansas, Florida, Texas, Utah and Virginia.
Comedy tall-guy Conan O’Brien has sold his digital media company, Team Coco, to SiriusXM in a heavyweight deal valued around $150 million. Conan O’Brien Needs a Friend ranked 26th among all podcasts by weekly listeners in the first quarter.
Best Buy cut its profit forecast, joining other major retailers to warn of an inflation hit, even as the electronics seller reported better than feared sales in the early part of the year.
Winner: 82% of Memorial Day travelers will drive
Record gas prices will do little to deter holiday travelers this Memorial Day.
The national average is $4.596 per gallon of regular — a 51% increase from the $3.039 average at this time a year ago.
Yet a study has found that 82% of those taking a trip this coming long weekend plan to do so by car.
Car travel is down by 7% compared to 2021, even though overall travel via all modes of transportation is up by 8%. Those who won’t be driving said that gas prices, inflation, and COVID-19 concerns all played a factor. 11% of road trippers this year will do so in an electric vehicle.
It is said that drivers of electric vehicles will save about 25% per mile.
Fuel prices are expected to stay high due to Russia’s ongoing invasion of Ukraine.
Russian oil comprised 10% of the world’s supply before war.
In California, a gallon of regular costs $6.069. Oklahoma averages $4.037 per gallon.
Loser: Snap falls 40% dragging other stocks with it
Snap shares plunged 38%, putting the company on pace for its worst day ever and dragging down other social media and digital ad company stocks.
Snap won’t meet its own targets for revenue and adjusted earnings in the current quarter.
Since April 21, the macroeconomic environment has deteriorated further and faster than anticipated.
Shares are down about 83% from a 52-week high in September 2021 and are off 70% year-to-date.
Meta is down more than 9%. Pinterest fell more than 21%. Google dipped 6%.
Fears around inflation, interest rate concerns, continued supply chain issues and the war in Ukraine have forced some advertisers and brands to rethink ad spending in the current quarter.
Snap and other tech companies are being pressured into slowing hiring and cutting back costs in an effort to make up for losses.