The market continues to shift to a profit mindset as Snap became the latest company to focus on its bottom line this week. But while that might look like job cuts at Evan Spiegel’s social media platform, other companies chase new markets and new products to get them there. These are the five big stories from the week that was.
1. Snap out of it
Social media company Snap has made drastic changes this week as it looks to cut costs and go back to its core business.
It will slash 1,300 jobs in the 6,000-person organisation and dump its drone camera and original content plans.
The restructuring news sent shares higher as the market continues to look for profitability over growth alone.
But CEO Evan Spiegel said Snap’s 8% growth rate year-on-year wasn’t adequate. His message echoes his close rival’s of doing more with less.
YouTube is pushing further into podcasts, launching its first dedicated hub in the U.S. with plans to roll it out globally.
As Spotify ventures into video-supported streaming, the Google-owned video giant is refusing to give it free reign over the fast growing market.
YouTube has gone as far as ponying up cash to entice big podcasters to film their shows as younger generations turn away from the platform.
3. Virtual apple
Next week Apple will hold another of its big product launches with the tech company expected to unveil the iPhone 14.
But fans and investors alike might have to wait a bit longer for the rumoured main event – after Apple trademarked names for VR tech.
If it is developing headsets or similar devices, it could help legitimise virtual reality and help take the technology mainstream.
4. Seeing double
Amazon has long represented the end game of ecommerce and for some even capitalism itself but it may get a taste of its own medicine yet.
Chinese rival Pinduoduo is set to launch in the U.S. next month, bringing with it rock bottom prices that could even undercut The Everything Store.
But Pinduoduo is also facing much of the same criticism as its American competitor, with some accusing it of even worse labour practices.
5. Market wrap
The message of ‘higher rates for longer’ from the U.S. Fed triggered a selloff this week as investors brace for tougher economic conditions.
But companies are still making moves. Rio Tinto landed a $4.8 billion takeover in a bid to become one of largest copper producers in the world.
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