Snap, Inc, the owner of the Snapchat application fell by 30 % after reporting earnings 2 days ago. Pinterest, after reporting earnings yesterday, fell by circa 12 %.
During the COVID-19 coronavirus pandemic it became clear that Snap Inc and Pinterest Inc, were some of the main beneficiaries of lock-down and Federal Reserve printing money intensively again.
In the past months, Snap Inc, Snapchat's owner stock and Pinterest stock went up a lot on expectations the Federal Reserve will loosen again its monetary policy by cutting interest rates aggressively. In the past week, as inflation rose again and the Federal Reserve backtracked and implied it could lower the Federal Funds Rate more slowly than expected by Wall Street research analysts, Snap Inc, Snapchat's owner and Pinterest stock tanked after Q4 2023 earnings reports.
It is clear that Snap, Inc and Pinterest's future is for the time being closely tied to the Federal Reserve's monetary policy.
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