Snap misses revenue estimate, shares plunge 30%

Snap (SNAP.N), opens new tab missed estimates for quarterly revenue on Tuesday, as the Snapchat owner continued to struggle to compete against larger rivals for digital advertising revenue, sending its shares down 30%.

Though its features are often copied by competitors, investors have long questioned Snap’s ability to hold its own against tech giants like Facebook owner Meta Platforms (META.O), opens new tab and Alphabet (GOOGL.O), opens new tab, which have more data to target ads.

Meta’s advertising sales surged 25% in the December quarter. Google’s ad business grew 11% as ad sales from YouTube increased 16% in the same period.

Snap has failed to show that it can capitalize on a healthy advertising market that has largely remained resilient despite economic uncertainty, said Thomas Monteiro, a senior analyst at Investing.com.

“It hints that Snap’s concerns are not macroeconomic in nature but mainly internal,” he said.

During a conference call with analysts, LightShed Partners analyst Rich Greenfield questioned Snap CEO Evan Spiegel on whether the company was “fundamentally disadvantaged” compared to larger rivals.

Spiegel said he still believed “there’s enormous opportunity for us to continue to grow our business.”

That will involve focusing more on serving advertisers that seek to increase sales or generate website clicks from their ads, rather than simply promoting brand awareness, the company said.

“Obviously, we wish we were moving faster, but we’re working as hard as we can,” Spiegel said.

Revenue in the fourth quarter ended Dec. 31 was $1.36 billion, missing the consensus analyst estimate of $1.38 billion, according to LSEG data.

The company’s full year revenue for 2023 was $4.6 billion, unchanged from the previous year.

Snap announced on Monday it would lay off 10% of staff, or 528 employees, in order to “invest incrementally” in the company’s growth over time.

In a letter to shareholders on Tuesday, Snap said it would shift more of its focus this year to increasing Snapchat’s user base and investing in markets where the tech company earns the most money, including North America and Europe.

Snap’s user numbers in North America were stagnant in the fourth quarter, while users in Europe grew by just 4 million compared with the previous year.

Spiegel said Snap would work on “resurrecting people who (previously) tried Snapchat or weren’t coming into the service as often.”

Daily active users totaled 414 million in the fourth quarter, beating analyst estimates of 411.6 million.

Most of the growth occurred in regions outside North America and Europe, which generate less advertising revenue.

Snap said it expects daily active users will grow to 420 million and forecast revenue between $1.1 billion and $1.14 billion in the first quarter. Analysts were expecting $1.1 billion.

Shares of Snap plunged 33% to $11.72 in after-market trading following the results and the conference call.

Hamas proposes 3-stage ceasefire over 135 days to end war

Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for four-and-a-half months leading to an end to the war, in response to a proposal sent last week by Qatari and Egyptian mediators and backed by the United States and Israel.

According to a draft document seen by media oultets, the Hamas counterproposal envisions three phases lasting 45 days each.

The proposal would see Hamas release Israeli women, males under 19, the elderly, and the sick in exchange for Palestinian women and children's release from Israeli jails.

The remaining male hostages will be released in the second phase, and by the third phase, Hamas expects an agreement on an end to the war.

Israeli forces would withdraw completely, and bodies and remains would be exchanged.

The Gaza-governing group has proposed the release of 1500 prisoners, with a third chosen from the list of Palestinians sentenced to life by Israel.

The group also aims to increase the flow of aid to Gaza's desperate civilians, who are facing hunger and shortages of basic supplies.

Dozens of Israelis entered the Al-Aqsa Mosque in occupied East Jerusalem, conducting religious ceremonies and “provocative tours of its courtyards”, according to eyewitnesses.

Israeli forces prevented Muslim worshippers from entering the Al-Aqsa Mosque for Friday prayers.

The Al-Aqsa Mosque compound, home to the Dome of the Rock and the 8th-century Qibli Mosque is forbidden for Jews due to its sacred nature, Arab media reported.

Police shoot dead two ‘terrorists’ outside Istanbul court: minister

Turkish police on Tuesday shot dead a man and a woman belonging to a leftist “terrorist” organisation who attacked a security checkpoint outside Istanbul’s main courthouse, injuring six people, officials said.

Interior Minister Ali Yerlikaya said the assailants were members of the Revolutionary People’s Liberation Party-Front (DHKP-C) — a fringe leftist group that has staged periodic attacks in Turkiye since the 1980s.

The group issued no initial claim of responsibility.

“While the terrorists who attempted to attack were neutralised, six people, including three police officers and three citizens, were injured,” Yerlikaya said in a social media statement.

Justice Minister Yilmaz Tunc said “heroic police officers prevented a treacherous attack”, adding that prosecutors had launched a “multi-faceted investigation”.

Images from the scene showed two bodies lying on the ground outside the main entrance of the Caglayan courthouse, which has been used for some of Turkiye’s biggest trials.

Police sealed off the courthouse entrances as a security precaution.

Pakistan strongly condemned the terrorist attack targeting the Courthouse complex and reaffirmed its “resolute solidarity” with Turkiye in the fight against terrorism.

“We extend our heartfelt condolences to the brotherly people and government of Turkiye and pray for the swift and complete recovery of those injured in this heinous attack,” a statement released by the Foreign Office said.

“Our thoughts and prayers are with the bereaved families,” it added.

‘Violent spell’

Turkiye has begun to emerge from a violent spell which started a decade ago, when it was hit by repeated bombings and other attacks linked to jihadist fighters and Kurdish militants.

Although those attacks have largely died down, both Istanbul and the capital Ankara remain on high alert.

Last month, one man was shot dead by two gunmen who opened fire inside a Catholic church in Istanbul. The attack was claimed by Islamic State group jihadists.

In October, two assailants injured two policemen in an attack on the government district in the capital Ankara that was claimed by Kurdish militants.

Turkiye responded by stepping up air strikes against Kurdish targets in Syria and Iraq.

In one of its highest-profile attacks, the DHKP-C in 2013 staged a suicide bombing of the US embassy in Ankara, killing a Turkish security guard.

The group, which is recognised as a terrorist organisation by Washington, has been fighting US influence in the Middle East and across the world. In 2014, Washington issued a $3 million reward for the capture of the group’s leaders.

Houthis claim fresh attacks on two merchant ships in Red Sea

Yemen’s Houthi rebels said Tuesday they struck US and British ships in two separate attacks in the Red Sea, one of which was confirmed by a security firm.

In a statement, Houthi spokesman Yahya Saree said the “the first attack targeted the American ship Star Nasia, while the other targeted the British ship Morning Tide”.

Security firm Ambrey had initially reported a drone attack on a British-owned cargo ship off rebel-held Yemen but later said a projectile targeted the Barbados-flagged vessel.

It was launched from a small boat sighted in the vicinity of the ship, Ambrey said, adding that the projectile did not impact the ship directly but exploded nearby, causing minor damage.

There were no casualties among the crew, the British firm said.

British maritime security agency UKMTO said it had received a report of an incident off the rebel-held port city of Hodeida.

“The master stated that a projectile was fired at his vessel on the port side which passed over the deck, causing slight damage to the bridge windows,” United Kingdom Maritime Trade Operations said, without identifying the vessel or the flag it was flying.

“The vessel and crew are safe,” it added, saying the ship was proceeding on its voyage as planned.

Yemen’s Houthi rebels, who control much of the war-torn country, have been harassing Red Sea shipping for months in protest against the Israel-Hamas war.

Their attacks have triggered reprisals by US and British forces, including a wave of air strikes that hit dozens of targets late on Saturday.

The Houthis “will carry out more military operations against all hostile American-British targets” in self-defence, Saree said in Tuesday’s statement published on X, formerly Twitter.

Google faces another antitrust trial in the US over its ad business

A U.S. federal judge on Monday set a Sept. 9, 2024, date for the start of a jury trial in a lawsuit the U.S. Justice Department and a coalition of states filed last year against Google (GOOGL.O), opens new tab that accused the company of abusing its dominance of digital advertising technology.

According to international media reports, the lawsuit, filed in January 2023, accuses Google of monopolizing the market for digital advertising and undermining competition. The government has said Google should be forced to sell its ad manager suite.

The Justice Department, Virginia and other states had requested a July date for the Alexandria, Virginia, trial. U.S. District Judge Leonie Brinkema said in an order, opens new tab that a summer trial would have posed logistical problems.

Representatives for Google and the Justice Department on Monday declined to comment about the trial date.
Google separately faces a March 2025 trial in U.S. federal court in Texas, where a similar lawsuit from Texas and other states is challenging its ad tech practices.

In a third case, a U.S. judge in Washington, D.C., is expected to hear closing arguments in May in lawsuits from the U.S. Justice Department, Colorado and other states over Google's web search dominance.

King Charles diagnosed with cancer

King Charles III, 75, has been diagnosed with cancer and will be avoiding public events after being advised by his doctors to minimize in-person contacts, Buckingham Palace announced Monday.

The announcement marks a striking departure from the past, when monarch’s ailments were often hidden from the public, according to royal experts.

″During The King’s recent hospital procedure for benign prostate enlargement, a separate issue of concern was noted,” the palace said in an emailed statement. “Subsequent diagnostic tests have identified a form of cancer.”

The statement also did not specify what stage the cancer was found.

Separately, Buckingham Palace said Charles did not have prostate cancer.

The news comes a week after both Kate and King Charles were discharged from a private London clinic after medical procedures. The king underwent a “corrective procedure” for an enlarged prostate, while Kate, 42, had unspecified abdominal surgery on Jan. 17.

“His Majesty has today commenced a schedule of regular treatments, during which time he has been advised by doctors to postpone public-facing duties,” the statement added.

According to the statement, the king wanted to share his diagnosis in part to avoid speculation on his condition but also “in the hope it may assist public understanding for all those around the world who are affected by cancer.”

Before becoming king, Charles served as patron to a number of cancer-related charities, and “in this capacity, His Majesty has often spoken publicly in support of cancer patients, their loved ones and the wonderful health professionals who help care for them,” according to Buckingham Palace.

No further details are being shared about his treatment or prognosis, a palace spokesperson said, but the king returned to London on Monday to begin out-patient care.

Sarah Gristwood, royal biographer and historian, said it was “striking” that the diagnosis was announced at all given the royal family’s history of trying to “keep any sign of ordinary human fallibility behind closed doors.”

“When Charles’ grandfather, George VI, was very gravely ill, the severity of his condition was kept not only from the public but from the patient himself,” Gristwood said of King George, who died in 1952. “Those were the attitudes of the time. Happily, things have now changed.”

Charles ascended the throne last May in a coronation ceremony held months after the death of his mother, Queen Elizabeth II. Elizabeth reigned until her death at the age of 96 in September 2022. She was Britain’s longest-reigning monarch, with 70 years on the throne.

Kate is still in recovery, but her husband, William, Prince of Wales, is set to return to his royal duties by attending the London’s Air Ambulance Charity Gala Dinner on Wednesday.

Kensington Palace previously said the Princess of Wales is unlikely to return to her royal duties before Easter, March 31. There was no date specified for the king’s return to duties.

Buckingham Palace noted that many of the king’s planned engagements will have to be postponed or canceled, apologizing in advance to anyone inconvenienced as a result. Charles’ wife, Queen Camilla, will continue with her full public duties as he undergoes treatment.

Buckingham Palace has also emphasized there will be no counsellors of state appointed, a sign that the king will continue to perform his duties, said Craig Prescott, who teaches law at Royal Holloway, University of London, and specializes in the constitutional side of the monarchy.

“If the king is unavailable due to illness or is traveling overseas, then counsellors of state can be appointed to fill in for the king, and undertake the formal, constitutional functions of the monarch: things like granting the royal assent to legislation, and go through his red boxes,” Prescott said.

A source close to the Duke and Duchess of Sussex, Prince Harry and his wife, Meghan, told NBC News that Harry spoke to his father about the diagnosis.

“He will be traveling to the U.K. to see His Majesty in the coming days,” the source said.

Harry stepped down from his role as a senior member of the royal family in 2020 and has since taken up residence in California with his wife and two children. He has visited Britain sparingly in recent years, expressing concerns over the lack of security for his family and amid reports of a widening rift with his father and brother William.

He was in attendance for both his grandmother’s funeral and his father’s coronation.

 

Muslim members of UK's Labour Party warn of voter loss over Gaza stance

Muslim members of the UK's Labour Party have emphasized the potential loss of support from Muslim voters if the party does not alter its stance on the Gaza conflict, where Israel launched a military campaign after the Oct. 7 attacks by Hamas and has killed more than 27,000 people.

According to international media reports, the Labour Muslim Network (LMN) comprising Muslim MPs, mayors, municipal councilors, and registered party members, issued a statement highlighting the deepening rift between the party and its traditionally loyal Muslim base.

The statement underscored the findings of a recent survey indicating a fracture in the longstanding bond between the Labor Party and Muslim voters, citing the party's response to the prolonged Israeli attacks in Gaza as a primary catalyst for the disenchantment.

"These findings come in the context of over 100 days of Israel's continuous assault on Gaza the Labour Party's response has been unacceptable and deeply offensive to Muslims across Britain," the statement read.

"Muslim voters have been watching and are now sending a clear message - they will not support any political party that does not fervently oppose the crimes committed against the people of Gaza. The Labour leadership must change paths now or risk losing the support of the Muslim community for a generation," it added.

The Labor Party supports the government's stance on Gaza, as well as its rhetoric of a "humanitarian pause" in the conflict and a "sustainable ceasefire."

According to the British government, a "sustainable ceasefire" includes the destruction of Hamas so that it cannot threaten Israel again.

Besides the casualties, the Israeli offensive has left 85% of Gaza’s population internally displaced amid acute shortages of food, clean water, and medicine, while much of the enclave’s infrastructure has been damaged or destroyed.