Snapchat’s latest News it and Lose it Feature; American Airlines Earnings Soar; Dow’s Downer of Day

Snap to it…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Maybe Snapchat’s $10 billion valuation isn’t so crazy after all now that the disappearing messaging app has introduced its latest – and possibly greatest – feature, Discovery. This new feature is going to offer bite-sized bits of news giving the user  several options to get more on a story all with the convenient, effortless swipe of a finger. And then, true to Snapchat tradition (and technology), the stories will last for 24 hours before…you guessed it, they vanish into thin virtual air. A slew of media companies are already partnered with the app, including (but not limited to) CNN, ESPN and Yahoo News. The hope is that this little partnership will take that younger, hipper audience of 100 million monthly active users (and counting) and turn them into traditional news enthusiasts. Then there’s the ad revenue aspect. Gotta love those ads (and the revenue they hopefully bring in). Snapchats plans to post ads and then split the revenue with its media partners.

Things that make you go hmmm…

Image courtesy of vectorolie/FreeDigitalPhotos.net

Image courtesy of vectorolie/FreeDigitalPhotos.net

American Airlines had a very good year and I can assure you I had nothing to do with it. The company posted its fourth quarter earnings regaling us with the news that it scored $597 million in net income. That number was particularly impressive since last year at this time the company posted a $2 billion loss. To be fair, (and I hate it that I have to be fair to American Airlines) that loss was because of one-time costs from its merger with US Airways and from its bankruptcy case. American Airlines also hooked in $1.1 billion in earnings with $1.52 per share, beating Wall Street’s estimates by a single, solitary cent. American Airlines can thank dropping fuel prices for some of its impressive earnings and the company plans to take a chunk of its $2.9 billion profit to update its pre-historic fleet and raise salaries. But if you’re hoping for a drop in fares, don’t hold your breath. It’s not happening.

Dow and out…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Today’s blizzard/storm had nothing on the Dow’s performance today which looked particularly disastrous with no thanks to some of the world’s biggest companies taking huge hits. Microsoft takes the number one spot with more than a 9% hit on its stock price today, despite the fact that it beat earnings estimates by 4%. Investors just didn’t see the growth, sales and transitioning that they expect from the once powerful and mighty software company. Oh well. Caterpillar takes the number two spot with a 7% hit on its shares. The company missed earnings expectations by $0.20. As prices for copper, coal and iron ore come down, there is less demand for mining equipment, which is precisely what Caterpillar does. The fact that the dollar is stronger than most other currencies is also putting a crimp in the Dow today. Procter & Gamble, is among those companies whose lousy earnings took a nasty 3.8% hit in its stock price, in part, because of this strong dollar of ours.  Other companies that have seen better days on the Dow include: Intel, Cisco, IBM, Nike. But alas, the list does not end there.

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