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Meta’s apps haven’t hit the users mark

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Last Week’s Highlights

Meta is having ‘technical difficulties’

Shares of Meta Platforms Inc, owner of Facebook, Instagram, and WhatsApp, fell more than 20% after the company released its worse-than-expected earnings results for the fourth quarter of 2021. Analysts predicted a sum of 1.95 billion daily active users and 2.95 billion monthly active users, but the numbers came in at 1.93 billion and 2.91 billion respectively. Meta’s slump is due, in part, to the rise of other social networks such as TikTok, but also to Apple’s changes to its operative system. Now it gives users the option to prevent apps like Meta’s from tracking their online activity for ads, making it difficult for advertisers who rely on data to develop new products.

Google shares to be accessible to more people

Alphabet, Google’s company, announced its shares will have a 20-for-1 stock split. The company’s board of directors approved this change last Tuesday due to the quarterly results they obtained. The new split in Alphabet’s shares would make them accessible to more people. Each share would go from costing $2,752.88 to only $137.64. Each current holder would get 19 additional shares for every one they own; this news caused a 9% rise in Alphabet’s share price. The only pending to carry out the split is the shareholders’ approval.

Coming Up This Week

Amazon is reaching its prime

Amazon reported positive fourth-quarter results driven by sales of $137.4 billion, up 9% from its previous figures. Amazon shares rose 12% to $3,097 on Friday. It was also announced that the price of Amazon Prime membership will go up for the first time since 2018. Starting February 18 for new subscribers, and March 25 for current members, Amazon will charge $14.99 per month, up from $12.99, or $139 on an annual basis. Thanks to strong AWS and advertising results, Amazon Prime price hikes, and e-commerce results that weren’t as bad as some feared, Amazon may be the cause of tech stocks regaining momentum.

Is Snap on its way to glorious days?

Snap shares soar Friday and are on track for their best day ever. Snapchat’s parent company reported a surprise fourth-quarter profit. Snap shares jumped 50% to $37.09. If this earnings trend continues, the company will have the largest percentage increase since the company went public in 2017. Snap reported daily users grew 20% during the quarter to 319 million, 2.1 million more than Wall Street estimates. Snap also reported a net income of $22.6 million, or 1 cent per share. Revenue rose 42% year-over-year to $1.3 billion.

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Market News

US major averages closed last Friday with weekly gains for the second time in a row. The Dow Jones Industrial Average fell 21.42 points (0.06%); however, it ended the week up 1.1%. This seems to be one of the effects of a better-than-expected jobs report and its potential impact on monetary policy.

On the other hand, the Nasdaq Composite was up 2.4% as shares of several tech companies rose sharply. Amazon jumped 13.5%, Snap increased 58.8%, and Pinterest climbed about 11.2%.

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