Truss quits, Twitter job cuts?

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Traders on the floor of the NYSE, Oct. 20, 2022.

Source: NYSE

Here are the most important news items that investors need to start their trading day:

1. Weak end?

2. Snapped again

Co-founder and CEO of Snap Inc. Evan Spiegel attends the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022.

Benoit Tessier | Reuters

It didn’t matter that Snap posted adjusted earnings per share while Wall Street was expecting a loss. Or that its revenue grew, or that its user count increased. It all just wasn’t good enough, and it doesn’t look like it’s going to get any better as the advertising market gets tighter. Snap shares, already down 77% as of Thursday’s close, plummeted 25% in off-hours trade. The company’s 6% year-over-year revenue gain was the first time quarterly sales growth fell into single digits since the social media company went public in 2017. Its user gain was offset by a decline in revenue per user. “We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital,” Snap told shareholders.

3. More twists in the Twitter saga

In this photo illustration, the image of Elon Musk is displayed on a computer screen and the logo of twitter on a mobile phone in Ankara, Turkiye on October 06, 2022.

Muhammed Selim Korkutata | Anadolu Agency | Getty Images

The Washington Post reported Thursday evening that Elon Musk is planning to eliminate 75% of Twitter‘s 7,500-person workforce if he takes over the company. One former executive said the cuts would be so drastic, it could leave users exposed to security threats and images of children in sexually abusive situations. But, the Post added, the current Twitter regime is planning on dramatic layoffs of its own – about a quarter of the company’s workforce – and the completion of Musk’s $44 billion deal to buy the social network would spare them from making painful decisions. Twitter’s top lawyer, in response to the Post article, told employees in an email that the company’s plan was put on hold after the merger agreement was signed. Musk has until Oct. 28 to finish the deal. Elsewhere, Bloomberg reported that the Biden administration was considering national security reviews for Musk’s Starlink satellite internet service and his Twitter deal.

Read more: Facebook shuttle bus drivers are losing their jobs

4. Ukraine presses on

Ukraine’s President Volodymyr Zelenskyy visits the Memory Wall of Fallen Defenders of Ukraine, amid Russia’s attack on Ukraine, during marking the Defender of Ukraine Day in Kyiv, Ukraine October 14, 2022.

Ukrainian Presidential Press Service | Reuters

5. Who’s next?

British Prime Minister Liz Truss announces her resignation, outside Number 10 Downing Street, London, Britain October 20, 2022.

Henry Nicholls | Reuters



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