Snap Back To Reality
Far be it from me to suggest Snap has a better read on the outlook for the economy than Jamie Dimon, but I'll admit CEO Evan Spiegel's staff memo, made public as the company slashed revenue and profit guidance, sounded more in touch than Dimon's somewhat nebulous "strong economy, big storm clouds" characterization, delivered Monday at the bank's first investor day since the pandemic.
"I’m calling it storm clouds because they’re storm clouds," Dimon explained. "They may dissipate." Spiegel,
“like many companies,” is contending with “rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more.” How can a software company be impacted by supply chain shortages? Sounds a bit nebulous…
Most likely indirectly, via lower ad-spend?
Well because the rainbow tongues were contaminated by glass particles and the dog ears are sitting on containers outside Long Beach?
re. Tech, it’s worth noting that one thing the post-pandemic world seems to show is that they are less “winners-take-all” than expected.
For example, Pr. Galloway makes the point that TikTok success is threatening not just FB and Snap but also NFLX! More so than Disney+ or HBOMax…
I work at a software company that also relies on hardware/ Snap is probably working with a lot of cutting egde AR/VR tech. To test their software, they are probably working with a lot of new hardware. Components are tough to get and prices are gouge level and therefore new software products are getting delayed.
I’m sorry. Somehow picking Snap as some kind of relevant major leading economic indicator reflects just how much we have lost our sense of proportion in America. Who the heck could justifying caring about the future of Snap? As H has pointed out frequently this year the rising disavowal by our population of its citizens in the bottom economic half, the inability for normal folks to afford housing, medical care, food, transportation, etc. renders concern for the future of Snap into the category of a talk show monologue joke.