Snapchat's My AI

Snapchat’s ‘My AI’ helps stock surge: The Weekly Scoop

This week, Snapchat’s ‘My AI’ gives the stock a boost, Pfizer drops due to its latest developments with weight loss pills, and Nvidia slips 4% thanks to talks of a ban in China. Get ready folks, it’s time for The Weekly Scoop!

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Snap jumps 9% thanks to ‘My AI’ 🤖

Eye spy with my AI: If you still have Snapchat on your phone, you may have seen My AI, which is Snapchat’s chatbot. Snap is analysing people’s conversations with My AI to better personalise its ads. Is this a savvy move to up revenue or another classic case of tech comps spying on user habits? 

  • 10 billion messages: My AI has received 10 billion messages in just under four months. Snap is using these messages to refine its ad business by analysing them and showing users products they might be interested in. 

  • Improved monetisation: Less than 1% of Snapchat’s user base subscribes to its paid plan, Snapchat+. It’s not surprising given the additional benefits are limited, so Snap’s move to monetise data through AI is giving investors reason to be bullish.

Pfizer shares drop 7% as weight loss pill loses momentum 💊

A weighty loss: Avid Weekly Scoop readers will know Pfizer jumped 7% last month when it shared results from one of its weight loss pills. So why are shares now down 7% this week?

  • One pill too many: The pharma company has said it’s only progressing with one of its weight loss pills, danuglipron, which you need to take twice a day. Lotiglipron, which is taken once a day, has raised liver damage concerns in early trials.

  • A $30 billion market: Goldman Sachs estimated obesity drug sales could reach $30 billion 10 years from now, with the market opportunity potentially nearing $100 billion. With such large stakes at play, any bad news is likely to affect share price.

Nvidia slips 4% thanks to an export ban in China 📉

The stock that’s finally slowed down: The most successful stock in the S&P 500 this year has finally experienced a dip in its share price. After being up around 185% year-to-date, an exports ban to China cut off one of Nvidia’s most lucrative customers: China themselves.

  • Biden’s ban: According to The Wall Street Journal, Biden’s administration is concerned that China could use AI chips from Nvidia for weapon development and hacking.  

  • History repeating itself: Nvidia faced a similar ban last year which threatened sales up to $400m, but the company found a workaround in supplying a version of products that avoided the ban. With tensions rising between the US and China, alongside AI developing at rapid rates, will Nvidia avoid a ban a second time running?

What have we learned this week? 🤓

  • Data is a lucrative commodity: In 2017, the Economist reported that data had become the world’s most valuable commodity. Snap may have just realised a way to vastly improve its data collection using AI. It’s just another example of AI helping businesses.

  • Weight loss has huge potential: Many public figures such as Elon Musk have been taking weight loss drugs for some time now. But for those suffering with diabetes, it could be a significant development. A development investors will want to be a part of.

  • International relations are market movers: The US and China are by far the most dominant economic countries. If trade relations between them suffer, it has detrimental effects on the world’s largest companies.

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*Figures correct as of June 28th 2023.

Past performance does not guarantee future results. Capital at risk when investing.

This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

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James Ashoo

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James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

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Harry Harrison

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