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Tech companies seem to be taking a third quarter hit. Amazon, Google, and Snap are among those companies that have registered the huge drops as was released on Thursday.
Amazon, which is an e-commerce company, marked a 4.3 percent decline in shares. The drop was associated with Amazon Web Service which demonstrated a very slow growth rate. Despite the drop in shares, the e-commerce giant registered a rise in profits to $2.9 billion from $256 million in 2017 of the same quarter.
Google’s parent company, Alphabet, registered a 3 percent drop in shares. This third quarter, however, brings Alphabet to a net profit of $9.2 billion up from $6.7 billion during the last year’s quarter. This is amidst latest reports that Google has sent home 48 of its employees in the last two years due to claims of sexual harassment, among who were top executive members. Google is said to have covered the allegations and related it to misconduct.
The drop was also recorded in one of Google’s major contributors, Google Ads, which contributes to over 80 percent of sales. This year it experienced a plunge of 20% in growth compared to last year’s quarter of 24%, and the slow growth was attributed to unfavorable exchange rates of currencies.
Another tech company that also fell into the valley of the drop in shares is Snap Inc., the developing company of Snapchat. Snap’s shares dropped by 3% in its third quarter. However, the drop in the number of Snap users did not happen all at once; there has been a gradual decrease in the number of people using it over the years.
Its asserted that the social media company in the last three months has lost 2 million users daily and it’s feared that the numbers will continue dropping in the coming months. Despite the drop of daily users, Snap has increased its total revenue compared to last year’s quarter of $207.9 million to $297.7 million.
In efforts to improve its app, Snap is designing a new feature dubbed ‘Mushroom’ which will make the app more user-friendly and fast in data processing. All this is aimed at increasing revenue in 2019.
With social media competitors like Facebook, Snap has to stay on top of its game to keep its revenue basket to its goal. Snap has set eyes on revenue worth the margin of $355 million and $380 million for its fourth quarter period.