Snap Inc. and Netflix Inc. have seen increased usage as the COVID-19 pandemic forces people to entertain themselves at home, but only one is expected to see increased earnings when they report financial results Tuesday afternoon. Snap (SNAP) depends on advertising revenue through its popular Snapchat platform, which will make it the first internet company this earnings season to detail what is expected to be a frustrating dynamic across media: While audiences are larger, marketers are pulling back on ad spending. Snapchat is “the experimental platform that’s susceptible to budget cuts,” according to Bernstein analyst Mark Shmulik. Read More...
Netflix and Snap earnings will be different tales of media usage during coronavirus
Snap Inc. and Netflix Inc. have seen increased usage as the COVID-19 pandemic forces people to entertain themselves at home, but only one is expected to see increased earnings when they report financial results Tuesday afternoon. Snap (SNAP) depends on advertising revenue through its popular Snapchat platform, which will make it the first internet company this earnings season to detail what is expected to be a frustrating dynamic across media: While audiences are larger, marketers are pulling back on ad spending. Snapchat is “the experimental platform that’s susceptible to budget cuts,” according to Bernstein analyst Mark Shmulik.
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