6 Most Important Things in Business Today
Snap Inc. (NYSE: SNAP) shares fell as it lost a senior executive. According to The Wall Street Journal:
A top Snap Inc. executive is leaving a month after the company reported its first quarterly decline in daily users, reviving Wall Street’s concerns about social-media sites’ growth prospects and handing the company a significant challenge as it struggles to boost its share of the advertising pie.
Imran Khan, Snap’s chief strategy officer, becomes the latest senior member of Chief Executive Evan Spiegel’s circle to exit. His departure comes as Snap is moving to reverse a poorly received redesign of its flagship Snapchat app. The initiative was aimed at separating user content from that of big media companies, but a backlash from users is hampering Snap’s bid to convince advertisers to spend more dollars on the platform.
The new Apple Inc. (NASDAQ: AAPL) iPhone may be key to keeping the company’s margins high. According to The Wall Street Journal:
For Apple Inc.’s devoted fans, new product unveilings are almost a religious experience. Which is good, since the iPhone maker needs to keep testing their faith with higher prices.
Three new iPhone models are expected to be introduced into the company’s lineup at an event Wednesday. Analysts believe these will include an updated version of the pricey iPhone X launched last year, along with a larger-screen version of the same. Another device with a less-expensive LED display is also expected. Apple’s new iPhones typically go on sale in late September—just before the close of the company’s fiscal year.
Investors are in a battle over whether Tesla Inc. (NASDAQ: TSLA) will need new debt. According to The Financial Times:
Markets send Tesla a message about funding needs
Elon Musk insists electric carmaker does not need to raise capital but others disagree.
Boeing Co. (NYSE: BA) expects sales to China to rise. According to Bloomberg:
Boeing Co. raised its forecast for aircraft demand in China even as an escalating trade war between the world’s two biggest economies casts a shadow over the planemaker’s prospects in the Asian country.
China will need 7,690 new planes valued at $1.2 trillion in the two decades through 2037, the Chicago-based company said Tuesday as part of its annual report outlining the global market scope for the next 20 years. That is a 6 percent increase over its projections last September for 7,240 aircraft through 2036.
Sanctions against Iran could cause a spike in oil prices. According to CNBC:
U.S. sanctions on Iran’s energy industry, when they come into effect in November, could potentially drive oil prices above $100 per barrel, according to an industry expert.
U.S. West Texas Intermediate crude oil futures traded at about $68 per barrel on Tuesday, while Brent crude futures sat at nearly $78.
“If there was not that set of sanctions, I think prices would go to $70 or even a little bit lower. But now the sanctions threat is real and less than two months in front of us, that will transform the market into much higher prices,” Fereidun Fesharaki, founder and chairman of consultancy FACTS Global Energy, told CNBC’s Akiko Fujita at the CLSA Investors’ Forum in Hong Kong.
Amazon.com Inc. (NASDAQ: AMZN) continues to look for a second headquarters. According to CNNMoney:
A year ago Friday, Amazon announced its quest to find a city for its second headquarters somewhere in North America.
The company has since whittled down 238 proposals to 20 finalists. Executives have crisscrossed the United States — and one Canadian city — to tour sites in search of the company’s next home. A decision is expected this year.
If anything, the past year reemphasized one thing loud and clear: Amazon knows exactly what it’s doing. The process has given the company a trove of free data about cities and drummed up tons of free publicity and hype.