{"id":10370,"date":"2024-02-07T09:33:22","date_gmt":"2024-02-07T09:33:22","guid":{"rendered":"https:\/\/www.vtmarkets.net\/?p=10370"},"modified":"2025-02-22T08:11:11","modified_gmt":"2025-02-22T08:11:11","slug":"forex-market-analysis-usd-strength-surges-feds-influence-snap-inc-s-revenue-struggles","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.net\/de\/analysis\/forex-market-analysis-usd-strength-surges-feds-influence-snap-inc-s-revenue-struggles\/","title":{"rendered":"Forex Market Analysis: USD Strength Surges, Fed&#8217;s Influence, Snap Inc.&#8217;s Revenue Struggles"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\"><strong><u>CURRENCIES:<\/u><\/strong><\/h5>\n\n\n\n<p><strong>US Dollar Performance and Outlook<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The US dollar saw a significant boost following strong economic data and is poised for further movement based on upcoming Federal Reserve speakers&#8217; comments.<\/li>\n\n\n\n<li>Despite a slight softening, the dollar had previously surged over two days, fueled by a better-than-expected non-farm payroll report, indicating a robust and strengthening labor market.<\/li>\n\n\n\n<li>The services sector, as shown by the ISM services PMI, has expanded for 13 consecutive months, surpassing expectations and previous readings, hinting at a resilient economy despite tight monetary policies.<\/li>\n\n\n\n<li>Improvements in new orders, prices, and imports within the ISM report suggest strong consumer spending and the impact of increased shipping costs on prices.<\/li>\n\n\n\n<li>The Senior Loan Officer Survey highlighted a growing willingness among credit providers to extend credit and a slight increase in demand for it, contrasting with expectations in a high-interest rate environment.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Economic Indicators and Fed&#8217;s Influence<\/strong><\/h4>\n\n\n\n<p><strong>Federal Reserve Speakers and USD Outlook:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The dollar&#8217;s trajectory may continue to be influenced by forthcoming comments from Fed speakers on monetary policy and interest rates.<\/li>\n\n\n\n<li>Observations on economic data and cautious approaches to interest rate cuts are anticipated to contribute to the dollar&#8217;s recent advances.<\/li>\n\n\n\n<li>This economic resilience and strong data suggest potential delays in starting interest rate cuts, leading to recent gains in US yields and the dollar.<\/li>\n\n\n\n<li>The dollar index (DXY) showcased significant gains, with a focus on whether this momentum can be sustained, especially as it approaches key resistance levels noted in previous months.<\/li>\n\n\n\n<li>Federal Reserve&#8217;s Neel Kashkari&#8217;s comments on the unexpected strength of the US economy indicate that the current interest rates may not be as impactful due to a higher post-Covid neutral rate.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong><u>STOCK MARKET:<\/u><\/strong><\/h5>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Snap Inc.&#8217;s Financial Performance and Market Reaction<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Snap Inc., the parent company of Snapchat, did not meet Wall Street&#8217;s revenue forecasts for the quarter, causing a 30% drop in its stock price.<\/li>\n\n\n\n<li>Despite its innovative features, Snap struggles to secure digital advertising revenue against larger competitors like Facebook&#8217;s Meta Platforms and Alphabet.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Comparison with Industry Giants<\/strong><\/h4>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Internal Challenges Over Macro-Economic Issues<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Analysts suggest Snap&#8217;s revenue shortfall is due to internal issues rather than broader economic challenges, indicating a failure to leverage a resilient advertising market.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Strategic Focus and Management&#8217;s Response<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CEO Evan Spiegel emphasized the potential for growth, planning to target advertisers aiming for direct sales or website traffic, moving away from mere brand awareness campaigns.<\/li>\n\n\n\n<li>Snap reported Q4 revenue of $1.36 billion, below the expected $1.38 billion, with its annual revenue for 2023 remaining steady at $4.6 billion.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Operational Adjustments and Future Outlook<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Snap announced a 10% workforce reduction, equivalent to 528 employees, as part of its strategy to invest in long-term growth.<\/li>\n\n\n\n<li>The company aims to expand Snapchat&#8217;s user base, especially in its most profitable markets like North America and Europe, despite stagnation and modest growth in these regions, respectively.<\/li>\n\n\n\n<li>With 414 million daily active users in Q4, surpassing the anticipated 411.6 million, Snap foresees growth to 420 million users in the next quarter, projecting revenue between $1.1 billion and $1.14 billion against analysts&#8217; expectations of $1.1 billion.<\/li>\n\n\n\n<li>Following these announcements and the earnings call, Snap&#8217;s shares significantly declined in after-market trading.<\/li>\n\n\n\n<li>In contrast to Snap&#8217;s performance, Meta&#8217;s advertising sales increased by 25% in the last quarter, while Google saw an 11% growth in its ad business, including a 16% rise in YouTube ad sales.<\/li>\n<\/ul>\n\n\n\n<p>Start your\u00a0<a href=\"https:\/\/www.vtmarkets.net\/cfd-shares\/us-cfd-shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">CFD Shares Trading<\/a>\u00a0journey with VT Markets now!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CURRENCIES: US Dollar Performance and Outlook Economic Indicators and Fed&#8217;s Influence Federal Reserve Speakers and USD Outlook: STOCK MARKET: Snap Inc.&#8217;s Financial Performance and Market Reaction Comparison with Industry Giants Internal Challenges Over Macro-Economic Issues Strategic Focus and Management&#8217;s Response Operational Adjustments and Future Outlook Start your\u00a0CFD Shares Trading\u00a0journey with VT Markets now!<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-10370","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts\/10370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/comments?post=10370"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts\/10370\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/media?parent=10370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/categories?post=10370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/tags?post=10370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}