Snap forecasts quarterly revenue below estimates as ad competition hurts

Updated 1 day ago 3 minutes of read Views: 14

Snap forecasts quarterly revenue below estimates as ad competition hurts Snap forecasts quarterly revenue below estimates as ad competition hurts | Picture uploaded on Latesttechnewshub

Snap Inc. announced that its first-quarter revenue will fall short of what Wall Street had predicted because the company now faces stronger competition from major digital advertising companies which include Meta’s Facebook and Instagram.

The parent company of Snapchat has faced multiple difficulties during the past year because of changing U.S. trade regulations established by President Donald Trump and because of problems with its advertising system. These problems caused a major loss of trust among investors which resulted in Snap’s stock price dropping about 25% during 2025.

Advertisers now choose platforms that offer extensive worldwide accessibility which makes companies like Meta and TikTok their top choice because those platforms have more users. Snap showed positive trends in its advertising division despite facing tough competition from other companies. The company reported that its total active advertisers grew by 28% during the fourth quarter because of strong demand for direct response ads and newly introduced formats which included Sponsored Snaps and Promoted Places.

Snap announced that it has implemented platform-level age verification in Australia to meet new regulations which require users to be at least 16 years old. The platform removed more than 400,000 accounts as a result of this action.

Snap predicts its first quarter revenue will fall between $1.50 billion and $1.53 billion which represents a decrease from analysts’ forecasted average of $1.55 billion according to LSEG data.

The company does not include Perplexity revenue which stems from a $400 million partnership that was revealed last year in its revenue projections. Snap stated that both companies have not yet settled on a complete distribution plan.

Snap expected its current quarter adjusted EBITDA to exceed market predictions. The company forecasts earnings between $170 million and $190 million which will exceed analyst projections of $177.9 million because it is focusing on stricter cost management and profitability.

Snap achieved a net income of $45 million during the fourth quarter which represents a major increase from the $9 million earned in the same period last year. The company reduced its total net loss for 2025 to $460 million which is an improvement from the previous year when it lost $698 million.

The company is expanding into new business areas which go beyond its core advertising operations. Snap has established its independent unit Specs to develop augmented reality smart glasses while continuing to create new revenue streams through its Snapchat+ subscription service. The number of service subscribers increased by 71% reaching 24 million during the fourth quarter.

Daily active Snapchat users increased by 5% from the previous year to reach 474 million while the company lost 3 million users since the last quarter.

The quarterly revenue which ended on December 31 increased by 10% to reach $1.72 billion which surpassed the analyst forecast of $1.70 billion.

This reporting is by Jaspreet Singh in Bengaluru and Editing by Krishna Chandra Eluri from reuters. Checkout how Amazon Plans to Use AI to Speed Up TV and Film Production.

❓ FAQs

Q1: Why did Snap forecast revenue below Wall Street estimates?
Snap expects lower first-quarter revenue due to intense competition for digital advertising dollars from larger platforms like Meta’s Facebook, Instagram, and TikTok.

Q2: Is Snap’s advertising business still growing?
Yes. Despite revenue pressure, Snap reported a 28% increase in active advertisers in the fourth quarter, driven by direct response ads and newer formats such as Sponsored Snaps.

Q3: What impact did Australia’s age verification rules have on Snap?
Snap implemented platform-level age verification in Australia to comply with new regulations, which resulted in the removal of more than 400,000 accounts.

Q4: How is Snap improving profitability?
The company is focusing on tighter cost controls and operational efficiency, leading to an adjusted EBITDA forecast that is above analyst expectations for the current quarter.

Q5: What new revenue streams is Snap focusing on?
Snap is diversifying beyond ads by investing in augmented reality smart glasses through its Specs unit and expanding its Snapchat+ subscription service, which now has 24 million subscribers.

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Exclusive: Amazon Plans to Use AI to Speed Up TV and Film Production

Updated 1 day ago 4 minutes of read Views: 9

Exclusive Amazon Plans to Use AI to Speed Up TV and Film Production Exclusive Amazon Plans to Use AI to Speed Up TV and Film Production | Picture uploaded on Latesttechnewshub

Amazon will utilise AI technology to enhance the production speed of television shows and movies, according to this exclusive report. Amazon will implement artificial intelligence technology throughout Hollywood to improve movie and television production times, while the industry faces work disruption threats from this technology.

Albert Cheng who has worked in the industry for many years about Amazon MGM Studios leads the team which develops AI tools to decrease production expenses and improve creative processes. The company will begin its closed beta testing program in March 2023 by allowing selected industry partners to evaluate the tools until they achieve their first results in May.

Cheng describes the initiative, known internally as AI Studio, as a small, agile operation that follows the Amazon founder Jeff Bezos’ two-pizza team method by containing enough members to eat only two pizzas. The team consists of engineers and scientists who receive support from a small creative and business division.

The public AI initiatives of Amazon occur during a period when increasing production costs restrict studios from approving more projects. The company uses AI to automate and speed up particular filmmaking processes, which results in increased content production at a lower creative impact.

“The cost of creating is so high that it’s really hard to make more and really hard to take great risks,” Cheng said. “AI can speed things up according to our beliefs but it needs human inventiveness to create special storytelling which leads to outstanding results.”

The Hollywood community experiences anxiety because of this decision. High-profile actors including Emily Blunt have expressed their worries about the increased use of AI especially with the creation of AI-generated performers which jeopardises traditional acting roles.

Amazon demonstrates that its AI technology exists to support human staff instead of replacing them. AI will assist writers, directors, actors, and character designers as they create their work throughout production.

Like many tech giants, Amazon has been pushing nearly every business unit to explore AI use cases. The company has also cited AI-driven efficiencies as one factor behind its decision to cut around 30,000 corporate jobs since October, including roles at Prime Video.

According to Cheng, AI could help solve some of the biggest challenges in large-scale film and TV production.

The focus area he addresses involves the “last mile” which connects consumer AI technologies with filmmakers’ cinematic content accuracy requirements. The system requires character continuity through scene,s while it must work together with common creative software in the film industry.

The tools operated by Amazon Web Services (AWS) give Amazon capabilities that will enable the business to work with various language model creators, who will provide original content makers the ability to work during both pre-production and post-production periods. The studio prioritises two objectives, which include safeguarding intellectual property and stopping AI-created materials from being used in external systems.

The AI Studio is already collaborating with notable industry figures, including producer Robert Stromberg (Maleficent) and his company Secret City, actor Kunal Nayyar (The Big Bang Theory) through Good Karma Productions, and former Pixar and Industrial Light & Magic animator Colin Brady.

Launched last August, the studio points to its series “House of David” as a glimpse into AI’s future role in filmmaking. For the show’s second season, director Jon Erwin combined AI-generated visuals with live-action footage to create large-scale battle scenes, seamlessly blending both elements to expand the scope of the production at a lower cost.

As Amazon moves forward, the company believes AI could become a powerful tool in reshaping how stories are brought to the screen—while keeping human creativity at the center of the process.

This Reporting is by Dawn Chmielewski in Los Angeles and Greg Bensinger in San Francisco Editing by Nick Zieminski from reuters.

❓ FAQs

Q1: Why is Amazon using AI in movie and TV production?
Amazon is adopting AI to reduce rising production costs and speed up time-consuming processes. The goal is to make it easier to produce more films and shows while keeping budgets under control.

Q2: Will AI replace writers, actors, or directors at Amazon?
No. Amazon has stated that AI will be used as a supportive tool, not a replacement. Writers, actors, directors, and designers will remain involved at every stage of production, with AI enhancing creativity rather than replacing human talent.

Q3: What is Amazon’s AI Studio?
AI Studio is a small, specialized team within Amazon MGM Studios focused on building AI tools for filmmaking. It operates like a startup, following Amazon’s “two-pizza team” philosophy to stay agile and innovative.

Q4: How is AI being used in real productions already?
Amazon points to its series House of David as an early example. AI was combined with live-action footage to create large-scale battle scenes, helping expand visual scope while keeping costs lower.

Q5: When will these AI tools be available to creators?
Amazon plans to launch a closed beta program in March, allowing select industry partners to test the tools. Initial results and feedback are expected to be shared by May.

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Samsung Expects Strongest Profit Since 2022 as AI Demand Tightens Memory Chip Supply

Updated 3 months ago 4 minutes of read Views: 99

Samsung Expects Strongest Profit Since 2022 as AI Demand Tightens Memory Chip Supply Samsung Expects Strongest Profit Since 2022 as AI Demand Tightens Memory Chip Supply | Picture uploaded on Latesttechnewshub

SEOUL (Oct. 14) — Samsung Electronics was expected to record the strongest quarterly profit in over three years, led by strong demand in memory chips across the globe and by the AI boom, which will consequently affect commodity chips to be in tight supply, pushing prices high.

The South Korean tech giant also expected an operating profit of 12.1 trillion won ($8.5 billion) for the July–September period, up 32% on a yearly basis and better than the expected analyst figure of 10.1 trillion won as compiled by LSEG SmartEstimate. The result is a notch back to one of Samsung’s finest for this quarter in the last 13 and a signal of the semiconductor market that has a strong foundation to return.

AI Throws Out Some Cork in the Memory Ocean of Recovery

In that respect, while lagging in its effort to capture a chunk of the high-bandwidth memory market clients (by selling HBM chips to Nvidia, for instance), Samsung’s strong showing in conventional DRAM and NAND memory markets might have fueled the loss-making AI chip sales.

“The earnings surprise came from the chip business,” said Ryu Young-ho, senior analyst at NH Investment & Securities. “Strong demand for conventional memory to support general-purpose servers, combined with robust HBM demand for AI servers, has fueled overall memory demand.”

Samsung’s dominance has been largely drawn from its memory chip-making, which has stayed the longest in the world, as some of the closest constraints haven’t hampered the supply-export scenario with such good fortune. DRAM chips — which have been widely used in servers, smartphones, and PCs — were up by over 170% in price from a year earlier yield, according to TrendForce.

Increasing Revenue with Pricing Power

Sales in the quarter rose by 8.7% to 86 trillion won, an all-time high since it benefited from a weakening won and higher chip prices. Analysts said the Samsung Foundry division managed to cut losses during the period by becoming more profitable, which helped the overall business.

“Samsung is a major beneficiary of the growing demand for commodity chips,” said Sohn In-joon from Heungkuk Securities, pointing out that lower inventories and stronger DRAM and NAND prices have given the company more bargaining power.

The company is expected to release detailed earnings on October 30.

AI Boom Tightens Memory Chip Supplies

AI infrastructure — including servers and data centers — that are being built out across the globe is essentially choking the supplies of traditional memory chips, which have thus faced lengthy periods of scarcity through 2026, during which memory chip prices are likely to rise.

Many chipmakers involved themselves in producing advanced AI hardware, thereby squeezing the supply of regular memory. Analysts anticipate the shortages in the commodity memory through 2026 by rapidly accelerating AI-related upgrades and will continue to cause similar conditions in other major tech firms.

Samsung has recently secured various supply contracts involving Tesla and OpenAI which suggest that it might be focused on AI applications. However, potential trade tensions between the US and China, export restrictions, and other hikes on tariff barriers could spoil its ambition in consumer electronics and its chip exports in the impending quarters.

AI Ambitions and Future Outlook for Samsung

While Samsung surrendered its global No. 1 DRAM market share to SK Hynix this year, a gradual recovery is expected to resume when it presents the bulk production of HBM3E chips and get set to develop HBM4 for 2026, as analysts project.

“Samsung is on track with next-generation HBM4 development, working closely with major U.S. partners,” Morgan Stanley noted in a recent report.

To further encourage employees, the company plans to launch a performance-based share compensation program for all its employees across South Korea over the next three years, according to a recent internal memorandum.

Amid fierce market competition, analysts seem confident that Samsung has the right ingredients in its mix, such as AI-driven innovation, careful supply discipline, and strategic R&D investment, to hit a bulls-eye in the memory market.

Outlook

In conclusion, Samsung performance in the third quarter represents the balancing act between AI and the recovery in the traditional chip market. Hence, the future balancing token for AI chips and memory chip production will be the location of the fight for the halfway house shaping the next decade conjoined with semiconductor technology.

❓ FAQs

Q1: Why is Samsung reporting its highest profit since 2022?
Profit rose sharply as demand from end users to increase the prices of conventional memory chips derived from the rising trend in the development of AI infrastructure and data centers around the world.

Q2: How much profit did Samsung earn in the third quarter?
The expected operating profit of the company for the period between July and September is about 12.1 trillion won, or roughly $8.5 billion, marking the best quarterly performance in more than three years.

Q3: What causes the global chip shortages?
While manufacturers chase after AI and high-output chips, production of conventional memory chips has, however, slowed down, tightening supply and lifting prices.

Q4: How does Samsung compete in AI chip technology?
Samsung is vigorously stepping up its production of HBM3E and next generation HBM4 chips with an aim to par the gap between itself and SK Hynix while further strengthening partnerships with American counterparts like Nvidia.

Q5: What risks could hinder Samsung's growth?
Analysts conjecture that along with U.S.-China trade tensions, export controls, and competition in the AI market, the aforementioned factors could hinder or inhibit Samsung's future earnings and operations.

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Google faces tighter regulation in UK over search dominance

Updated 2 weeks ago 4 minutes of read Views: 53

Google faces tighter regulation in UK over search dominance Google faces tighter regulation in UK over search dominance | Picture uploaded on Latesttechnewshub

LONDON (Oct 10) — Tech giant Google might soon have to go with another way of doing business in the UK after having been successfully designated as the first under the new rules which curb Big Tech dominance.

As part of the UK’s digital economy, the Competition and Markets Authority (CMA) has now elevated Google’s search business to the status of “strategic market status” (SMS). Thus, the regulator has a relatively wide authority to set fair competition and transparency parameters.

“The CMA has decided that Google maintains a strategic position in the search and search advertising sector with over 90 percent of the searches in the UK conducted on its platform,” explained Will Hayter, CMA Executive Director for Digital Markets.

Meaning Behind the CMA’s Ruling

While the decision itself doesn’t accuse Google of any wrongdoing, it empowers the CMA itself to intervene at times of great market imbalance, impose penalties for breaches, and call for operational changes.

Potential interventions include the following — previously raised for consideration back in June:

  • Ranking competitors fairly in search results
  • Making it easy for users to access alternative search engines
  • Giving publishers and content producers more power and rights over the use of their work in AI-generated search responses

The CMA sees consultation on specific measures later this year, which will be followed by setting of final requirements.

Google Pushes Back

Google has defended its position, adding that excessive regulation would hinder innovation and delay product roll-outs in the UK.

“Most of the ideas raised would inhibit UK innovation and growth, possibly slowing product launches at a time of great AI-driven innovation,” said Oliver Bethell, Google’s Senior Director for Competition.

The firm recently committed to invest £5billion ($6.65 billion) in Britain, making it clear that this was to point out its unwavering commitment to the UK, notwithstanding regulatory hurdles.

The Beginning of a New Era in Technical Oversight

This is the first major application by the CMA of its powers to control Big Tech. Investigation into mobile operating systems, in particular Android, could lead to other restrictions on Google.

At the same time, Google is also facing more scrutiny worldwide:

  • The U.S. Federal Trade Commission is investigating search advertising practices in concert with Amazon.
  • The U.S. Department of Justice is pushing to force Google to divest some ad-tech assets.
  • Recently, the European Union fined Google $3.45 billion for anti-competitive behavior in its advertising business.

These coordinated efforts signal a broader international push to rebalance power in digital markets.

Impact on Consumers and Publishers

Experts see that the CMA’s move could empower publishers and smaller tech players alike, putting them in a stronger position for deciding how their data and content would be utilized in any training AI.

Tom Smith, who was a director at the CMA and is now a competition lawyer at Geradin Partners, said the reduction of Google’s dominance could clear long-held distortions in the market.

“Giving control to website operators regarding how their content is used for AI training would help level the playing field and diminish Google’s unfair predominance,” Smith stated.

CMA confirmed that at present, Google’s Gemini AI assistant does not stand within the ambit of its designation. In contrast, other AI-based functionalities, including AI Overview and AI Mode, come under the ambit — a move signifying the first-ever attempt by the UK to govern the integration of AI with search results.

A Broad Push for Responsible AI and Search Innovation

The UK government has encouraged the CMA to trade-off competition versus economic growth, stressing innovation while keeping a clear regulatory pathway for businesses.

With more watchful eyes from regulators worldwide, the results of this case could set the benchmark for how countries oversee AI search engines and advertising dominance for the next decade.

❓ FAQs

Q1: Why is Google coming under fresh regulation in the UK?
The UK Competition and Markets Authority (CMA) has classified Google as holding strategic market status, thereby enabling regulators to oversee its dominance in search and advertising.

Q2: What changes could possibly be imposed on Google?
Measures could include fairer ranking of search results; creating a simpler process for switching to rival search engines; and granting more control to publishers over AI-generated content.

Q3: Does this mean that Google broke UK law?
No. The CMA has clarified this is not a finding of any wrongdoing; rather, it is a way to protect competition in the digital economy.

Q4: How might this bear upon other tech companies?
The ruling sets a precedent for regulating other tech giants such as Amazon, Apple, and Meta, especially in the fields of AI, mobile operating systems, and advertising markets.

Q5: What has been Google’s position on the ruling?
Google said stricter overseeing might hamper innovation and harm product development in the UK. The company continues its engagement with the regulator.

Q6: How does this fit with global inquiries?
Google has also faced antitrust investigations in the U.S. and EU into its ad-tech business. This UK ruling further adds pressure to Google's global regulatory outlook.

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