The pain train was back barreling down the tracks Tuesday, and for those who may have missed it late Monday after the closing bell…
Snap Inc., the parent company of social media app Snapchat, announced it will miss revenue targets and adjusted earnings for the second quarter.
The news sent shares plummeting over 40% in the already beaten-down stock, dragging the entire market down with it on Tuesday.
SNAP is down over 75% the past year and over 60% the past three months alone.
Sure, Snapchat’s revenue target miss is bad news for the company itself, but did you see what happened to Meta Platforms (Facebook) alongside it?
Down 10%…
I made a recent appearance on Cheddar, where I said Meta was not a buy after reporting better-than-expected earnings for the first quarter of 2022… a report I was skeptical of.
The day I made my appearance, FB was trading at $205… And it was trading at $177 Tuesday afternoon as I wrote this piece — nailed it.
In regard to Snapchat’s revenue target miss, it says something about the greater economy as a whole — and it’s not good.
I know I’ve spent an awful lot of time talking about the bond market lately, but it has all of my attention right now because it’s been trading sideways. The bond market looks like it is ready to move higher. If that’s the case, it should slow down interest rate hikes, which will also give the market some potential upside.
This is super important because the broader market gets its clues, for lack of a better word, from the bond market…
But what most investors don’t realize is that the Russell 2000 and the Communication Services sector were the two assets that triggered the recent downward move after the bond market. So the fact that both of them haven’t hit lower lows while the other major indexes have is a positive sign for the market.
Trend Trading is a strategy that attempts to capture gains through the analysis of a security's momentum in a particular direction. Trend traders enter into a long position when a security is trending upward (i.e. successively higher highs) and/or enter a short position when a security is trending lower (i.e. successively lower highs).
Give us a follow and join the conversation on our official social media channels! Monday’s Snapchat news sent the market tumbling. Jeff Zananiri explains what this says about the overall health of the economy…
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