News Story of the Day: Snap Inc (NYSE:SNAP) continues to crumble after surging to as high as $30 a few days after filing its initial public offering (IPO). Following another disappointing quarterly earnings report, Snapchat crashed as high as 14 percent during pre-market trading to just under $14 a share.
Here are two important takeaways from the report, notes CNBC:
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Adjusted EPS: Loss of 16 cents per share vs. loss of 14 cents per share expected by a Thomson Reuters consensus estimate
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Revenue: $181.7 million vs. $186.2 million expected by a Thomson Reuters consensus estimate
It is only going to get worse for Snapchat moving forward. The company doesn’t make profit, it will never make a profit and advertisers hate it.
Chart of the Day: MarketWatch believes this is the “scariest” chart in the financial markets right now. Why? Because European high yield junk bonds are relative to the yield of U.S. Treasuries. Here is the chart:
Illustration of the Day: if you’re an economist then here is a perfect illustration of what yourself and others think what you really do:
Quote of the Day: this will certainly generate some controversy among libertarians, especially those who worship the ground Milton Friedman walked on. Gary North has this to say about the legendary free market economist:
Milton Friedman always wanted to make the welfare state slightly less perverse.
He wanted to make education slightly less statist. He proposed vouchers. Supposedly, this was going to lead to greater parental choice. The scheme was nuts from the beginning. No school district ever adopted it. It was fantasy economics, politically speaking. It was designed to make the fascist system slightly more efficient, slightly less overbearing. It was never a serious proposal to restore liberty in education.
It always involved stealing money from taxpayers in order to transfer it to educational bureaucrats. There is no way to make that system just. That is theft from day one. There is no way to make a system based on theft into something favorable to freedom.
I said this from the beginning. I wrote about this in 1976. Friedman didn’t respond until 1993. But I got to answer his response. It is posted here.
We don’t need vouchers to fix the educational system. We need profit-seeking education, or free online education. We don’t need federal loans for education. We should let the monstrosity sink into the tar pits of bankruptcy.
Tweet of the Day: the #GoogleManifesto has been garnering headlines in the media, producing outrage among the left and creating discussion for the logical individuals. Michael Shermer of Skeptic Magazine issued an interesting tweet that looks at the gender gap of PhDs:
Companies hiring from bottom 4 fields (e.g. Silicon Valley) beware of bias police. What about companies hiring from top 4? Are they biased? pic.twitter.com/XmDiyafKo5
— Michael Shermer (@michaelshermer) 9 August 2017
Video of the Day: Elon Musk is your typical social justice leftist, but he isn’t even immune from the rabid PC crowd that are outraged by every single thing that isn’t LGBTQ. He is changing the world, helping us shift away from fossil fuels to helping man go to Mars, but all of this takes a backseat to PC behavior, whether it is making a S3X joke or not following women on Twitter. Ugh. 1791L delves into this a bit deeper:
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