Snap Stock Slides After it Misses Expected Earnings

Tami Abdollah

Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.

Snap Stock Slides After it Misses Expected Earnings
c1.staticflickr.com

Snap Inc. stock dropped more than 10% on Tuesday after it reported earnings that missed analysts expectations for Q4.

The self-described camera company, based in Santa Monica, reported revenue of $561 million versus the expected $563 million. The company's reported cash flow remains negative despite improvement over the year prior. The company said it lost $240.7 million, or 17 cents per share, compared with FactSet estimates of a 12-cent loss per share.


It reported a full year increase of 17%, or an additional 31 million, daily active users in 2019 compared to last year. The company, which is the maker of the Snapchat app, said it continues to invest in augmented reality platforms with 75% of its community engaging with AR on average daily. Snap also recently launched its new Bitmoji TV on Feb. 1, capitalizing on the popular Bitmoji Stories.

Snap reported that it expects revenue in Q1 of 2020 to be between $450 million and $470 million. That's above analysts expectations of $462 million.

Snap is up roughly 160% from last year, with a 52-week high $19.75 from its low of $6.80.

During Tuesday's earnings call, CEO and co-founder Evan Spiegel told analysts that the company was continuing to invest in its curated Discover page content.

"There are really interest shifts in content consumption," from television to mobile, Spiegel said. "Content hasn't caught up to this behavior shift (yet)."

Short-form video has taken off, especially with Gen Z, with youths moving into houses in Los Angeles, for example, specifically to generate TikTok videos as sponsored social media influencers. Meanwhile, soon-to-be launched, Quibi, or "quick bites," founded by Jeffrey Katzenberg and with CEO Meg Whitman is betting that bespoke episodic weekly videos that are under 10 minutes will take off.

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The Future of Urban Farming Looks Like a Formerly Abandoned Warehouse in Compton

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

The Future of Urban Farming Looks Like a Formerly Abandoned Warehouse in Compton
Plenty Farms via Samson Amore

In the middle of downtown Compton, California, fresh produce is scarce. According to the Compton Chamber of Commerce, the city is both a food desert and also a food swamp.

Drive through Alameda St. or Rosecrans Ave., and you’ll notice that grocery chains are sparse but fast food joints are numerous: Jack in the Box, McDonald’s, Popeye’s, IHOP. With the exception of a Walmart Supercenter off Long Beach Blvd., I couldn’t identify anywhere else to get fresh produce, unless it was a small, local corner store.

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https://twitter.com/samsonamore
samsonamore@dot.la

Collide Capital Founder Aaron Samuels On The Importance of Storytelling

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Collide Capital Founder Aaron Samuels On The Importance of Storytelling
Courtesy of LAV

On this episode of the LA Venture podcast, Collide Capital founder and managing partner Aaron Samuels discusses the importance of storytelling and talks about how his career journey led him to venture capital.

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Why Is Nasa Tracking And Mapping Dangerous Methane Plumes?

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Why Is Nasa Tracking And Mapping Dangerous Methane Plumes?

Multiple studies conducted by NASA’s Jet Propulsion Laboratory in Pasadena using both airborne and ground-based sensors have found that the overall rate of methane gas emissions in Southern California have fallen in recent years.

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https://twitter.com/samsonamore
samsonamore@dot.la
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