“Twitter” announces a disappointing earnings report after “Elon Musk” retreated from the purchase deal.
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The US Federal Reserve fights inflation with an increasingly likely recession.
Barclays intends to buy a stake in Cooper, a cryptocurrency company.
earnings statement
The profits were much lower than anticipated, along with a disappointing user growth rate,
according to the “Twitter” platform’s financial report for the second quarter of the current year 2022.
As a result, the Twitter stock declined by 2%.
The exact results were as follows: Forecasts were for sales of $1.32 billion
, a loss per share of 8 cents as opposed to a profit of 14 cents,
and 237.8 million daily active users as opposed to greater expectations of 238.08 million people.
Instead, revenue of $1.18 billion was reported, which is less than predicted.
Reasons for declines in revenue
In Twitter’s comment on the declines in revenue,
it said that the main reasons are related to the flow of advertisements related to
the difficult macroeconomic environment, in addition to t
he “Elon Musk” acquisition order on the platform,
which is still pending so far and the matter has not been resolved.
The difficulty of the sale on Twitter
When Musk chose to back out of the purchase agreement because it was alleged that Twitter had not been informed,
the topic of the billionaire’s acquisition of the “Twitter” platform in a deal valued at 44 billion dollars became murky
and evolved into a legal dispute between the two parties. After suing Musk,
Twitter was able to have an expedited trial in October on the amount of spam and fraudulent accounts on the site,
in addition to its inability to deliver the information it asked regarding the bogus accounts.
A collective decline in the value of social media shares
After cutting spending on digital advertising at a time of slowing economic growth,
shares of social media companies fell, with platforms such as Pinterest,
Meta, Alphabet and Snap collectively reporting a loss of up to $36 billion in market value,
as investors prepare for slower economic growth. Global in the history of social media platforms.
The US Federal Reserve fights inflation with an increasingly likely recession.
The Federal Reserve is attempting to curb entrenched inflation,
but it will likely have to exert more pressure on the economy given that growth has dramatically slowed;
as a result of the Fed’s repeated interest rate hikes, declines in the housing market,
and a rise in unemployment caused by tech companies being unemployed.
At a time when inflation continues to rise to its highest level in four decades,
some analysts believe that stagnation and an increase in unemployment rates
will need to reduce price pressures significantly,
and according to a “Bloomberg” survey of economists this month,
a deflation of 47.5% is likely. Large after it was at 30% in June
Despite the assurances by Federal Reserve officials,
they continue to emphasize the possibility of avoiding a possible recession
and implementing a smooth landing policy for the economy,
in addition to optimism that inflation will decline
at the same pace that it rose, given that the economy still enjoys fundamental strengths.
The fact that the central bank is having trouble managing the situation shows
that the impact was caused by more than just US inflation;
it was also a result of supply interruptions brought on by Russia’s invasion of Ukraine. Alan Blinder,
a former vice chairman of the Federal Reserve,
claimed that monetary policy and its effects Regarding inflation,
it will continue for a very long time, possibly even two or three years.
But at the same time, there is hope for an end to the supply chain crisis, and several former officials such as Blinder added that he feels some slight improvement in the possibility of a soft economic downturn when we look closely at the recent declines in energy and food prices.
Barclays intends to buy a stake in Cooper, a cryptocurrency company.
Barclays Bank has made the unexpected decision to invest in the cryptocurrency firm Cooper.
According to reports, the British bank is one of the new investors looking to invest millions of dollars in the company.
The purchase agreement is anticipated to be finalised quickly, possibly in just a few days.
It’s important to remember that Cooper is a business that specialises in offering institutional investors in cryptoassets brokerage,
initial brokerage, and settlement services.
Dmitriy Tokarev founded the business in 2018.
According to Sky News, Barclays and Cooper declined to comment on the report.
According to reports, the company intended to value at least $ 3 billion in the most recent currency in order to obtain cash,
but it cut this value in light of the ongoing crisis in the cryptocurrency market.
Numerous businesses involved in the cryptocurrency industry have been negatively impacted by the current
wave of market losses. As a result,
they have had a challenging year that has resulted in some cases of bankruptcy.