Snap shares fell more than 25% in extended trading on Thursday after the social media company reported its Q3 earnings missing on revenue. Snap reported $1.13B in revenue, up 6% YoY. This is the first time since the company went public in 2017 that it posted single-digit YoY revenue growth. More: - Snap reported a net loss of $360M, compared to a net loss of $72M reported in the same period last year.
- The company pointed partly to a $155M restructuring charge.
- EPS came in at 8 cents a share.
- DAUs rose to 363 million, up 19% YoY.
- Average revenue per user was $3.11, down 11% YoY.
- Snap said its subscription service, Snapchat+, grew to over 1.5 million paying subscribers in the quarter and is now available in over 170 countries.
- Snapchat+ offers exclusive, experimental, and pre-release features.
- Following its earnings release, Snap shares fell nearly 28% in extended trading on Thursday.
- It closed at $10.79 a share.
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British Prime Minister Liz Truss resigned on Thursday following weeks of backlash over her fiscal and economic policy. Truss served as Prime Minister from Sept. 6 to Oct. 20, marking the shortest term of any Prime Minister in Britain’s history. The Tory Conservative party said it would select a new leader by Oct. 28. More: - Late last month, Truss’ government unveiled £45B ($50.5B) worth of unfunded tax cuts in a mini-budget.
- The fiscal policy sent U.K. markets into a tailspin, with the sterling falling near parity with the U.S. dollar.
- The Bank of England had to intervene by buying large amounts of U.K. government bonds amid a massive sell-off.
- The central bank suspended its plans to sell gilts and announced plans to buy long-dated bonds at a rate of up to £5B ($5.4B) daily over a two-week period.
- Finance Minister Kwasi Kwarteng and chief secretary to the Treasury Chris Philip were fired on Friday and succeeded by Jeremy Hunt and Edward Argar, respectively.
- On Monday, Hunt announced he was canceling most of the planned tax cuts in Truss’ proposed economic policy.
- Hunt is scheduled to unveil his plans to balance the U.K.’s £40B ($45B) public accounts deficit on Oct. 31.
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China’s Ministry of Industry and Information Technology (MIIT) held several emergency meetings this week with the country’s top semiconductor firms to assess the impact of the U.S.’ recent chip export restrictions. Companies in attendance included Yangtze Memory Technologies and supercomputer specialist Dawning Information Industry. More: - Earlier this month, the U.S. published new export controls restricting the sale of semiconductors to China made with U.S. technology unless the vendors obtain an export license.
- The measures, considered the most significant shift in U.S. policy toward shipping technology to China since the 1990s, were aimed at curbing China’s advancement in the sector.
- The new rules also bar U.S. citizens or entities from working with Chinese chipmakers without explicit approval.
- According to sources, MIIT officials noted that China’s domestic IT market would be able to provide enough demand to keep impacted companies operating.
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Michael Dell’s MSD Partners is merging with Byron Trott’s BDT merchant bank to create a new investment and advisory firm that will cater to family- and founder-led business owners. MSD Partners is an investment started from Dell’s family office, MSD Capital. Dell will serve as chair for the newly formed entity. More: - Trott, a former Goldman Sachs partner, will co-lead the new company with Gregg Lemkau, another Goldman Sachs alum and the current CEO of MSD Partners.
- Lemkau has served as an advisor to some of Silicon Valley’s notable tech founders, including Jack Dorsey and Elon Musk.
- Trott has served as adviser and co-investor to Warren Buffett, the Pritzker family, and the Walton family.
- The merged firm will manage about $50B.
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AT&T released its Q3 earnings on Thursday, reporting a 5.6% increase in its wireless service revenues, its highest growth rate in over a decade. The telecommunications giant posted $30B in revenue, down 4% YoY. Income from continuing operations came in at $6.3B, or $0.79 a share, up 26% YoY. More: - AT&T reported 7.1 million in total wireless net additions
- AT&T said it also added 338,000 customers to its fiber optic network in Q3, the second-best quarter on record for the company.
- CEO John Stankey noted that the company is still committed to building new fiber optic lines.
- AT&T shares rose nearly 8% on Thursday, closing at $16.74 a share.
- YTD, the company is down ~13%.
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Texas has filed a lawsuit against Google, claiming the tech giant illegally collected users’ biometric data without their consent. According to Texas Attorney General Ken Paxton, Google collected millions of biometric identifiers from Texas residents, including voice prints and records of face geometry through products like Google Photos and Google Assistant. More: - Google is accused of using its photo grouping technology, used in identifying people in images, to collect and store the biometric information of individuals featured in the pictures.
- Texas is among a few states, including Illinois and Washington, with a biometric privacy law that bars the collection of biometric identifiers for commercial purposes without an individual’s consent.
- Violators of the law in Texas face up to $25,000 in penalties for each violation.
- Texas is also seeking a temporary injunction to prohibit Google from continuing the data collection in question.
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- American Airlines released its Q3 earnings on Thursday, reporting a record $13.5B in revenue, up 13% from 2019 levels. The airline expects the gains to continue through the end of the holiday season.
- U.S. Navy chief of operations Admiral Mike Gilday warned that the U.S. should consider that China could take action against Taiwan before 2024.
- Spirit shareholders have approved the airline's $3.8B cash sale to JetBlue Airways. The deal still has to be approved by U.S. antitrust regulators.
- The Pentagon plans to expand its use of Elon Musk's SpaceX satellite capabilities.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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