Amid the hubbub of Elon's bid to take Tesla private -- 55,000 times Ebitda at $80 billion is the valuation we are looking at -- Snapchat parent Snap (SNAP - Get Report) tanked again. The company's shares were down 6% Wednesday in the wake of Tuesday's Q2 earnings report. Snap beat Q2 forecasts but also guided for Q3 revenue of $265 million to $290 million (up 27% to 39%), which is almost entirely below a $289.2 million consensus. In addition, Snap's closely-watch daily active user (DAU) count came in at 188 million. The figure represents an annual increase of 15 million, but a sequential drop of three million. Things might not get any better for Snap, explains TheStreet's Eric Jhonsa. The company's cash burn remains high, while Snap's average revenue per user (ARPU) in North America rose by just 12%, compared to 16% growth in Q1 and 28% growth in Q4. "Ultimately, Snap and Twitter (TWTR - Get Report) are in the same boat," writes Jhonsa. "They're struggling to expand user bases that remain a small fraction of those claimed for Facebook's (FB - Get Report) most popular services beyond a core base of loyal consumers, and are trying to highlight those stats that make its user growth pressures look less worrisome."
A pair of big time entrepreneurs announced an intriguing new venture aimed at taking on the likes of Netflix (NFLX - Get Report) , Alphabet's (GOOGL - Get Report) YouTube, Hulu and whatever streaming services is bound to come out of Disney's (DIS - Get Report) new, massive portfolio. Former eBay (EBAY - Get Report) and Hewlett Packard Enterprise (HPE - Get Report) boss, Meg Whitman, and Jeffrey Katzenberg, the former DreamWorks head, are stepping into the mobile video fray as Hollywood consolidates. NewTV, which announced $1 billion in funding on Tuesday, will seek out a "sweet spot" in between longer form productions of Netflix and the shorter clips on YouTube, write The Deal's Chris Nolter this morning. "[Whitman and Katzenberg] are trying to play a little differently than where most of the subscription video on demand services," Moody's Investors Service analyst Neil Begley suggests to Nolter. The group would target mobile content shorter longer than the average YouTube clip but shorter than a 30 minute sitcom on Netflix or a network. "Fifteen minutes is probably what we will consider long form for mobile," he added. While not public, the enterprise will have no shortage of big name backers. Hollywood Investors include Fox (FOXA , Disney, Entertainment One, UK broadcaster ITV, Lions Gate (LGFA , Metro Goldwyn Mayer, NBCUniversal, Sony Pictures Entertainment, Viacom (VIAB - Get Report) and AT&T's (T - Get Report) Warner Media. Meanwhile, NewTV's international investors include John Malone's UK cable group Liberty Global (LBTYA and Jack Ma's Alibaba (BABA - Get Report) . Financial investors Goldman Sachs (GS - Get Report) , JPMorgan (JPM - Get Report) , and Madrone Capital Partners also put money in NewTV.
Markets Today: Stocks ended the day flat on Wednesday, Aug. 8, as a push from strong corporate earnings was muted by continued trade tensions between the U.S. and China. The Dow Jones Industrial Average fell 45 points, or 0.18%, to 25,584, the S&P 500 slipped 0.03%, and the Nasdaq rose 0.06%
This is an excerpt from "In Case You Missed It," a daily newsletter brought to you by TheStreet. Sign up here.