Imagine this. You’re 23 years old and someone offers you $3 billion for your hot idea. You turn it down. That’s what happened to Evan Spiegel, the CEO of Snapchat, the highly popular and fast growing photo-messaging service used by millions of teenagers and 20-somethings. The Wall Street Journal reports that the two-year old company turned down a huge cash offer from Facebook, gambling that it could do better after being courted by other investors. Until last month the firm was being run out of a beachfront bungalow in Venice Beach, Calif. Snapchat’s app allows users to send photos and text that disappear shortly after they are viewed. Teens love it. Reports of Facebook’s $3 billion offer come after an admission last month by CFO David Ebersman that teens are spending less time on the social media site. Facebook bought the popular photo-app site Instagram last year.
The stock market is riding high again. Macy’s gave the stock market a jolt yesterday when it announced stronger-than-expected profits. The department store chain also gave an optimistic forecast for holiday sales. The S&P 500 rose 14 points, to 1,782, its 34th record close this year.
While Macy’s impressed, Cisco raised eyebrows. The tech firm’s quarterly sales grew less than expected. Profits declined, sending its stock down in after-market trading. Cisco’s performance is widely regarded as a bellwether for the technology industry. The firm sells routers, switches, software and services to corporate customers and government agencies.
Used car prices are coming down and it’s another sign of a repairing economy. With gains in new car sales, there’s a glut of trade-ins. Auto pricing firm Edmunds.com says the average used car sold for $15,617 at a franchised dealership during the summer quarter – the lowest price in four years. But the average is still below what was seen before the economy tanked during the recession.
Janet Yellen faces questions today during a Senate hearing on her nomination to lead the Federal Reserve. Skeptical Republicans say the Fed’s policies may be swelling asset bubbles or raising the risk of high inflation. In testimony prepared for the hearing, Yellen expresses support for the fed’s economic stimulus effort.
Union machinists at Boeing in Seattle have rejected a contract proposal from the company. It would have exchanged concessions on pensions and health care costs for a promise of secure jobs. The eight-year plan was rejected by a 2-1 margin. Workers would have received a $10,000 signing bonus if they approved the deal. The no vote may mean that production of Boeing’s next generation 777 plane could go to another state.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow