On Tuesday, Twitter (TWTR) delivered its weakest quarterly revenue growth as a publicly traded company. Twitter’s disappointing earnings report has cast a shadow on its shrinking advertising business, which, until now, has been its bright spot. To make matters worse for the company, its earnings results were leaked on to social media an hour before their expected release, thereby sending both the company and its stock into a downward spiral. A small New Jersey firm that crawls the Web for financial data found a link to Twitter’s new release and began tweeting the company’s results. This disclosure prompted the company to halt trading of its shares on the New York Stock Exchange. Once trading resumed, the stock was down nearly 20%. Twitter’s revenue growth of 74% from a year earlier fell short of its own projections and analysts’ expectations. The company also lowered its forecast for the current quarter as a result of the disappointment. Twitter shares closed down $9.39 at $42.27.
Sharing is Caring…
AOL and NBCUniversal announced they have signed a licensing and distribution agreement that will allow the two companies to share content and develop joint programming. The partnership give AOL access to NBCUniversal’s portfolio of broadcast networks, cable channels and networks, including NBC, CNBC, and Telemundo. The two companies are also in talk to create programming that could appear on both of their platforms. The new partnership gives advertisers a one-stop shop for reaching customers across mobile devices and TV. The move comes as media companies are trying to adapt to the changing viewing habits of consumers. The shift in viewing habits also has advertisers struggling to adjust to so much content on so many different screens. Shares of AOL closed down $0.29 on Tuesday.
Asian markets closed lower on Wednesday, as investors wait for words of wisdoms from the Fed’s policy meeting.
European shares closed down on Tuesday. Investors took a breather and cautiously looked ahead to Wednesday’s fed policy announcement.
U.S. stocks closed mixed after a choppy trading session, as investors digested disappointing corporate earnings, anxiety over Wednesday’s fed meeting, and lower than expected durable goods orders. DJIA: +72.17 18.110.14 S&P: +5.84 2,114.76 NASDAQ: -4.82 5,055.42
Word of the Day:
Joint Venture (JV)
An agreement between two or more parties who agree to pool their resources for the purpose of accomplishing a specific business activity, like a project. In a joint venture, each of the parties is responsible for profits, losses, and costs associated with the business activity. However, the venture is its entity, separate from the participant’s other business interests.
Dinner or Drinks:
1.25 Pierre Ferrand Cognac (1840)
.75 Rittenhouse Rye
.5 Dry Curaçao
2 dashes Hair of the Dog Bitters
Add the Cognac, Rittenhouse Rye (or other 100 proof rye), Dry Curaçao and bitters to a chilled mixing glass. Add ice and stir until well chilled. Rinse a chilled cocktail glass with absinthe and then strain the drink into the glass. Garnish with a lemon twist.
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