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In this screengrab, CEO of Snap Inc. Evan Spiegel takes the stage at the virtual Snap Partner Summit 2021 on May 20, 2021 in Los Angeles.

Snap Partner Summit 2021 – Snap Inc | Getty Images

The online ad market is bouncing back. But the spoils are not being evenly shared.

After Meta blew away Wall Street estimates last week in its fourth-quarter earnings report, pushing the stock to a record, smaller rival Snap came up short on Tuesday, sending investors rushing for the exits.

Meta’s ad business, which includes Facebook and Instagram, grew 24% from a year earlier, lifting the company to its fastest rate of expansion since mid-2021. Snap reported an increase of just 5% year-over-year, its sixth straight quarter of single-digit growth or a decline in sales. That’s slower than advertising growth at Google, Amazon and Microsoft in addition to Meta.

Based on investors’ reactions, Snap is headed for one of its worst days on the market since its debut seven years ago. The stock dropped 33% in extended trading to $11.75. Its two biggest one-day declines were a 43% drop in May 2022 and a 39% plunge two months later.

Meta, by contrast, soared 20% on Friday after the company reported a tripling in profit, beat estimates on the top and bottom lines, issued an optimistic forecast and announced that it’s paying a dividend for the first time.

“We’re seeing the bigger companies get bigger and smaller companies are slower to rebound,” said Jasmine Enberg, principal analyst at Insider Intelligence. “Snap is one of those” in the latter camp, she said.

For the first quarter, Snap projected revenue of $1.095 billion to $1.135 billion, which would equal growth of between about 11% and 15%. The middle of the range — $1.115 billion — was just below analysts’ average estimate of $1.117 billion.

Broadly, the digital ad market is recovering from a brutal 2022, when soaring inflation and rising interest rates led brands to reel in spending. Now ad platforms are seeing improvements from a more stable economy along with upcoming events like the 2024 Olympics in Paris and the the presidential election later this year.

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As Enberg noted, “the rebound has been uneven” and has benefited Meta and other giant tech companies like Alphabet and Amazon, which all reported advertising growth in the double digits for the fourth quarter.

On Snap’s earnings call on Tuesday, CEO Evan Spiegel faced questions from analysts about why the company is lagging behind competitors.

Rich Greenfield of LightShed Partners asked Spiegel if Snap’s smaller size compared to Meta represents “a fundamental long-term issue.” Spiegel responded by saying that Snap is “certainly one of the largest Internet services,” and while some platforms are bigger, “I think there’s enormous opportunity for us to continue to grow our business.”

Barclays analyst Ross Sandler asked Spiegel, “Why aren’t we seeing more progress and getting that growth rate up to the levels of the broader digital ad industry?”

‘Wish we were moving faster’

UKRAINE – 2023/03/11: In this photo illustration, Temu, LLC logo seen on a smartphone and on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

Sopa Images | Lightrocket | Getty Images

Meta is seeing the benefits, sparked by a surge in spending from Chinese retailers, which are trying to reach the company’s billions of users spread across the globe. Meta has 2.11 billion daily active users, compared with 414 million for Snap.

Spiegel echoed commentary from prior quarters and said Snap is “investing heavily” into machine learning and AI technologies to enhance its online ad platform.

Enberg told CNBC that, based on feedback she’s heard from advertisers, Meta is further ahead in its development. And the company’s size provides an inherent advantage.

“Meta’s platforms are much bigger than Snapchat, meaning that they have more data and users to work with as they’re rebuilding it,” Enberg said. “Snap has clearly made progress, and we saw some of that in its earnings, both this quarter and last quarter, but it seems to be taking a longer time for the company.”

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Snap has recently tried to distance itself from the broader social media universe and has pitched itself as more of a messaging company, Enberg said. The company disclosed sales in its Snapchat+ subscription service for the first time and said it had an annualized revenue run rate of $249 million in 2023. The service now has 7 million subscribers, up from 5 million in the previous quarter. Snap debuted the product in 2022 for $3.99 a month.

But revenue from subscriptions is currently minimal. Advertising is still what matters, and “the reality is that it’s competing for the same social dollars,” Enberg said.

“I think the confidence level from investors in Snap is concerning going forward,” she said.

WATCH: Meta is too optimistic on revenue and cost growth in 2024.

Meta is too optimistic on revenue and cost growth in 2024, says Needham's Laura Martin

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Perplexity launches AI-powered web browser for select group of subscribers

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Perplexity launches AI-powered web browser for select group of subscribers

Dado Ruvic | Reuters

Perplexity AI on Wednesday launched a new artificial intelligence-powered web browser called Comet in the startup’s latest effort to compete in the consumer internet market against companies like Google and Microsoft.

Comet will allow users to connect with enterprise applications like Slack and ask complex questions via voice and text, according to a brief demo video Perplexity released on Wednesday.

The browser is available to Perplexity Max subscribers, and the company said invite-only access will roll out to a waitlist over the summer. Perplexity Max costs users $200 per month.

“We built Comet to let the internet do what it has been begging to do: to amplify our intelligence,” Perplexity wrote in a blog post on Wednesday.

Perplexity is best known for its AI-powered search engine that gives users simple answers to questions and links out to the original source material on the web. After the company was accused of plagiarizing content from media outlets, it launched a revenue-sharing model with publishers last year.

In May, Perplexity was in late-stage talks to raise $500 million at a $14 billion valuation, a source familiar confirmed to CNBC. The startup was also approached by Meta earlier this year about a potential acquisition, but the companies did not finalize a deal.

“We will continue to launch new features and functionality for Comet, improve experiences based on your feedback, and focus relentlessly–as we always have–on building accurate and trustworthy AI that fuels human curiosity,” Perplexity said Wednesday.

WATCH: Perplexity CEO on AI race: The market of providing answers to questions will become a commodity

Perplexity CEO on AI race: The market of providing answers to questions will become a commodity

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Retailers log $7.9 billion in online sales in first 24 hours of Prime Day

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Retailers log .9 billion in online sales in first 24 hours of Prime Day

A worker sorts packages on Amazon Prime Day in New York on July 8, 2025.

Klaus Galiano | Bloomberg | Getty Images

U.S. online sales jumped 9.9% year over year to $7.9 billion on Tuesday, the kickoff of Amazon‘s Prime Day megasale, according to Adobe Analytics.

At that level, it marks the “single biggest e-commerce day so far this year,” Adobe said. It also eclipsed total online spending during Thanksgiving last year, when sales on the holiday reached $6.1 billion.

Amazon’s Prime Day bargain blitz began on Tuesday and lasts through Friday. The event, first launched in 2015 as a way to hook new Prime members, has pushed other retailers to launch counterprogramming.

Walmart‘s six-day deals event also started Tuesday, while Target Circle Week kicked off on Sunday and Best Buy launched a Black Friday in July promotion that began Monday.

Home and outdoor goods showed signs of strong demand during the first day of Amazon’s discount event, said Kashif Zafar, CEO of Xnurta, an advertising platform that serves more than 20,000 online businesses.

Read more CNBC Amazon coverage

Other historically well-performing categories such as beauty and household essentials saw softer demand early on, but could see demand pick up as Prime Day continues, he added.

“Early Prime Day numbers might look soft compared to last year’s surge, but it’s too early to call the event a miss,” Zafar said in an email. “With four days instead of two, we’re seeing a different rhythm, consumers are spreading out their purchases.”

Adobe expects online sales to reach $23.8 billion across all retailers during the 96-hour event, a level that’s “equivalent to two Black Fridays.”

U.S. online shoppers spent $14.2 billion during the 48-hour Prime Day event last year, according to Adobe.

This year’s Prime Day is landing at an uncertain time for retailers and consumers as they grapple with the fallout of President Donald Trump‘s unpredictable tariff policies.

U.S. consumer confidence worsened in June after improving in May as Americans remained concerned about the tariffs’ effect on the economy and prices, according to the Conference Board.

Amazon CEO Andy Jassy said last month the company hasn’t seen prices “appreciably go up” on its site as a result of tariffs.

Some third-party sellers previously told CNBC they were considering raising or had already raised the price of some of their products manufactured in China as the cost of tariffs became burdensome.

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Photos show Altman, Iger and Cook arrive at ‘summer camp for billionaires’ in Sun Valley

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Photos show Altman, Iger and Cook arrive at 'summer camp for billionaires' in Sun Valley

Sun Valley: Tech CEOs convene as leaders discuss the impact of tariffs, future plans

Top executives from tech, media and finance gathered in Sun Valley, Idaho, for Allen & Co.’s annual conference this week, an event that is often referred to as “summer camp for billionaires.”

Apple CEO Tim Cook, Walmart CEO Doug McMillon, Disney CEO Bob Iger and OpenAI CEO Sam Altman were all pictured entering the lodge.

Wednesday’s agenda includes interviews with Amazon CEO Andy Jassy, Treasury Secretary Scott Bessent and IAC Chairman Barry Diller, sources told CNBC’s Julia Boorstin.

When he arrived on Tuesday, Altman said he is not concerned about the artificial intelligence talent war and that he would talk to Meta CEO Mark Zuckerberg this week.

Scroll down to see the tech and media moguls arriving at the exclusive event.

Apple CEO Tim Cook

Tim Cook arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David Grogan | CNBC

Comcast CEO Brian Roberts and Disney CEO Bob Iger

Brian Roberts, CEO of Comcast, and Bob Iger (R), CEO of Walt Disney Co., attend the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

TV host Gayle King

Gayle King attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

OpenAI CEO Sam Altman

Sam Altman, CEO of OpenAI, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

GM CEO Mary Barra

Mary Barra, CEO of General Motors, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Spanx founder Sara Blakely

Sara Blakely, founder of Spanx, arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Walmart CEO Doug McMillon

Doug McMillon, CEO of Walmart, arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Entertainment executive Casey Wasserman

Casey Wasserman, CEO of Wasserman Media Group, arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Boston Red Sox and Liverpool FC owner John Henry

John Henry attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

OpenAI Chair Bret Taylor

Bret Taylor, chairman of the board of directors of OpenAI, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Warner Bros. Discovery CEO David Zaslav

David Zaslav, CEO of Warner Bros. Discovery, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Home Depot co-founder Ken Langone

Ken Langone attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Billionaire investor Stanley Druckenmiller

Stanley Druckenmiller attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

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