This Week in Startups Snap drops 40%, Layoffs at Gorillas & Klarna, Adam Neumann's new startup, Coinbase using Principles | E1468
May 24, 2022
Snap's shares plummet by 40% after grim earnings forecasts, raising alarm bells in the tech world. Layoffs at Gorillas and Klarna signal tough times for instant-delivery and buy now, pay later sectors. Meanwhile, Adam and Rebekah Neumann launch a blockchain-based carbon credits startup called Flowcarbon, aiming to innovate in sustainability. Coinbase experiments with a new feedback system inspired by Ray Dalio, igniting discussions on workplace culture and performance ratings. Tune in for insights on navigating economic turbulence!
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Market Disconnect
- Snap's 45% drop reveals a disconnect between their growth and market sentiment.
- This suggests external factors like margin calls and over-leveraged funds are at play.
Buyback Strategy
- In a downturn, company executives and investors should consider buyback programs.
- This reduces the number of shares, increasing earnings per share and signaling confidence.
Macro Environment Factors
- Snap blames the "macro environment," which includes global economic conditions and changes in digital advertising.
- This encompasses the end of the pandemic e-commerce boom, Apple's iOS privacy changes, and specific advertising issues.
