Snap said the momentum is fading even as reopening efforts have been halted or reversed across much of the United States.
“At the beginning of widespread shelter-in-place requests, as people sought to stay connected and entertained from home, we saw an increase in daily active users who reported our initial estimate,” analysts Derek Andersen, director, told analysts. financial statement. “This initial uprising dissipated faster than we anticipated as shelter conditions in place persisted.”
Snap’s daily active users were 238 million during the three months through June, a 17% increase from the same period last year, but just below the company’s estimate of 239 million during its latest earnings call. in April.
The pandemic has also affected advertising, which accounts for the bulk of Snap’s revenue. Disruptions in industries like transportation, restaurants and entertainment led vendors to cut advertising spending, Andersen said, adding that several other advertisers paused to rework their strategy for the pandemic.
“These challenging circumstances interrupted a robust momentum,” he said.
Why it matters: Big tech companies, especially those with robust cloud services businesses, have continued to shine during the pandemic, fueling the massive rally in the S&P 500. But the industry is not a monolith.
Businesses that rely on advertising revenue could be particularly vulnerable as the economic recovery stutters. That means Facebook’s earnings next week will likely be watched even more closely than usual.
Airlines are desperate for a transatlantic trip to pick up
“Given the unquestionable importance of transatlantic air travel to the global economy, as well as the economic recovery of our businesses, we believe it is essential to find a way to reopen air services between the United States and Europe,” the executives wrote.
Why it matters: American travelers are currently banned from visiting the European Union, impeding a major market. Airlines hope that by pressing for a stronger test regime, they can find a way to restore a major travel corridor even as Covid-19 cases increase in parts of the United States.
Details, details: United said it is losing less money than a few months ago. But he’s still bleeding $ 40 million every day, reports my CNN Business colleague Jackie Wattles.
United and other large companies have been trying to quell consumer anxiety about flying. Last month, US airlines announced that they would ban passengers who refuse to wear facial coatings. United said Wednesday it will also require passengers to wear masks at airports from check-in to baggage claim.
However, most potential travelers still stay home, with airport traffic of over 70% in July compared to the previous year.
The big Retail weekend will look very different this year
Thanksgiving weekend is crucial for American retailers. This year, it will look very different.
“We know this has been a difficult year, and our associates have taken a step forward,” John Furner, Walmart’s chief executive in the United States, said in a statement. “We hope you enjoy a special Thanksgiving Day at home with your loved ones.”
The move comes at a time when retailers are rethinking their plans for the holiday shopping season as coronavirus cases increase, raising concern about crowds in stores, reports my CNN Business colleague Parija Kavilanz. .
Retailers hesitate to stock up on inventory for a day like Black Friday given the risk that in-person events are impossible in November.
Walmart, which has developed its digital offerings in recent years, is likely to move in a similar direction. The company is reportedly close to launching its own membership program that closely resembles Amazon Prime.
Until next time
Also Today: Existing US Home Sales for June are released at 10 am ET.
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