headlines...by halloapp

To provide feedback, please reply to this email.

Forwarded this email? Subscribe here for more.

12-02-2023

TECH

• Elon Musk’s social media platform X (formerly known as Twitter) is facing an advertiser boycott due to controversial remarks and antisemitic content. Major brands like Walmart have pulled their ads, leading X to focus on small and medium-sized businesses. Elon Musk has defended himself against the boycott, while hedge fund manager Bill Ackman supports him. The future of X under Musk’s ownership is uncertain.

• A federal judge in Montana has blocked the state’s ban on TikTok, ruling it unconstitutional and an overstep of state power.

• Amazon has partnered with SpaceX to launch satellites for Project Kuiper, a satellite internet project, with three launches planned for 2025.

• Meta Platforms, the parent company of Instagram, is under scrutiny by EU regulators regarding child safety measures and risks of child sexual abuse material on its platforms. Failure to comply may result in a formal investigation.

• UiPath’s Q3 results show 24% YoY growth in ARR and positive cash flow, leading to a stock surge, but analysts caution on growth acceleration.

• Alibaba stock falls after Morgan Stanley downgrades it due to slower growth and competition from Pinduoduo, losing its position as China’s most valuable e-commerce company.

• Domo’s shares rose 7.4% after reporting Q3 revenue and earnings that beat estimates, with a shift towards a consumption-based pricing model.

• Brazilian legislators unknowingly passed a law written by ChatGPT, raising concerns about the use of AI in legislation. EU lawmakers are struggling to regulate generative AI systems like ChatGPT, posing a threat to proposed AI legislation. The proposed EU regulation could benefit big US tech companies and become the international standard. France, Germany, and Italy object to targeting regulation at foundation models.

• OpenAI has postponed the launch of its GPT store until early 2024 due to unexpected delays and leadership changes.

• OpenAI’s ChatGPT has become a huge success, attracting over 100 million users and triggering an AI arms race among tech companies.

• NetApp Inc. shares fell 0.12% on Friday, while Akamai Technologies Inc. and F5 Inc. shares rose, outperforming the market. Eastman Kodak Co. shares also rose but underperformed.

• Nvidia is an undervalued AI stock with strong demand and growth prospects in data centers and AI, despite concerns over exports to China and rich valuation.

• Cashea, a BNPL app, is growing in Venezuela amid the economic crisis. It has gained 1.2 million clients and offers credit to consumers with limited access.

• Microsoft’s stock is soaring as its AI investments and partnerships with OpenAI drive growth in the expanding AI software market.

• Ambarella Inc exceeds expectations with Q3 2024 earnings, reporting revenue of $50.6 million and plans for growth in fiscal year 2025.

• Cadence Design Systems and Samsung Foundry collaborate to improve 5G networking SoC design, resulting in increased productivity and faster closure.

• Okta reports strong Q3 results with increased subscription revenue, but concerns over data breaches lead to downgrades and stock decline.

MEDIA

• The Gaza ceasefire collapsed as Hamas refused to release Israeli women and Israel resumed airstrikes, causing casualties and destruction.

• Sandra Day O’Connor, the first woman to serve on the US Supreme Court, has died at the age of 93 due to complications from dementia and a respiratory illness.

• Apple and Paramount are in talks to bundle their streaming services, Apple TV+ and Paramount+, at a discounted price.

• Fans of Beyoncé, known as the Beyhive, dressed up in silver outfits, cowboy hats, and concert merch for the premiere of her Renaissance tour film in London. The film showcases her creative control, addresses challenges faced by Black women, and features a new song called “My House.” AMC Entertainment plans to release the film globally in its theaters. The film also reveals intimate moments, including a reunion with Destiny’s Child members and her daughter’s debut performance. Beyoncé’s net worth is over $500 million, and the film is expected to add tens of millions to her earnings.

• 72-year-old Gerry Turner proposes to 70-year-old Theresa Nist on ABC’s ”The Golden Bachelor” finale, leaving Leslie heartbroken.

• A new book alleges that King Charles and Princess Catherine made racist remarks about the skin color of Prince Harry and Meghan’s unborn son, causing chaos in the British monarchy. Buckingham Palace is considering legal action.

• Microsoft is in talks to launch an Xbox mobile store, potentially challenging Apple and Google’s dominance in mobile gaming.

• Valery Gergiev, a pro-Kremlin conductor and supporter of Putin, replaces Vladimir Urin as director of Moscow’s Bolshoi Theatre.

• Disney plans to resume dividend payments in January 2024, following a halt in early 2020, reflecting strong post-pandemic cash flows. Activist investor Nelson Peltz’s Trian Fund Management pushed for this move and is launching a proxy fight against Disney, targeting CEO Bob Iger’s performance.

• The Hong Kong Journalists Association is concerned about the safety of Minnie Chan, a reporter who went missing after a trip to Beijing.

• Rockstar Games will release a trailer for Grand Theft Auto VI on December 5, potentially confirming rumors of a Vice City setting.

• Jussie Smollett’s appeal has been denied, and he is likely going back to jail for his disorderly conduct convictions related to a hate crime hoax.

• Florida Governor Ron DeSantis is calling for the resignation of Florida GOP chair Joe Gruters due to allegations of sexual battery. Additionally, Florida GOP chair Christian Ziegler is under investigation for sexual assault.

• Citi analyst downgrades Spotify stock to Neutral, citing concerns about revenue, user retention, shift to developing markets, and valuation risks.

• Bradley Cooper talks about his film ”Maestro,” a Leonard Bernstein biopic that delves into the composer’s music, marriage, and bisexuality. Premiering on Netflix on Dec. 20.

CONSUMER

• Movado Group reported an 11% decline in sales for Q3, leading to a lowered full-year guidance.

• Genesco Inc. reported a 4% decrease in Q3 revenue, citing a market change in sales trends and implementation of an ERP system. The company expects a more promotional holiday season.

• PVH Corp, parent company of Calvin Klein and Tommy Hilfiger, reports strong Q3 performance with 4% revenue growth and increased EPS guidance.

• Matthew M. Williams is leaving his position as creative director of Givenchy in early 2024 to focus on his own brand, 1017 ALYX 9SM.

• US retailers, such as Amazon and Foot Locker, are optimistic about holiday season sales due to strong Black Friday and Cyber Monday figures, including record-breaking online sales.

• Saks Fifth Avenue and Neiman Marcus are in talks to merge, but have not reached an agreement due to differing valuations and terms of the deal.

• Executives at Kontoor Brands, Donnelley Financial Solutions, and DoubleVerify Holdings sell shares, raising concerns about financial health and stock valuation.

• American Outdoor Brands, Inc. beats Q2 earnings expectations with $0.25 per share and reports 6.4% net sales growth.

• Foot Locker’s stock has seen a 50% increase in the past three months, driven by better-than-expected Q3 earnings and strong sales performance.

• US retailers like Amazon and Walmart are adopting ”keep it” return policies to reduce costs and environmental impact during the holiday season.

• Syrup Tech, an AI-powered inventory platform for fashion retailers, raised $17.5 million in funding to expand and reduce waste.

REAL ESTATE

• UK house prices rise for the third consecutive month as mortgage rates fall, but pressures on the economy persist.

• Evergrande is in talks with foreign creditors to avoid liquidation, with a key creditor group supporting the company’s operations and completion of homes. Offshore creditors seek a controlling stake in the company.

• Rep. Adam Smith’s Washington home was vandalized by protesters advocating for a cease-fire in the Israel-Hamas conflict.

• India’s construction sector grew 13.3% in Q3, contributing to the country’s 7.6% GDP growth, leading to raised growth projections for the economy.

• Amancio Ortega’s investment firm, Pontegadea, has acquired an Amazon logistics center in Dublin for €225 million ($244.98 million).

• The U.S. Justice Department and National Association of Realtors are in a legal battle over an antitrust investigation into home-buying fees and potential regulatory changes that could impact buyer agency.

ECONOMIC

• The debate between California Governor Gavin Newsom and Florida Governor Ron DeSantis lacked structure and clarity, leaving no clear winner.

• National Bank of Canada reported Q4 earnings of $2.44 per share, while Bank of Montreal reported Q4 earnings of $2.81 per share.

• China’s manufacturing activity unexpectedly expanded in November, with the Caixin PMI rising to 50.7, driven by rising orders. US and UK manufacturing remained weak, while Asia’s factory activity remained stagnant.

• Exxon Mobil, Clorox, Chevron, Avery Dennison, Baker Hughes, PepsiCo, EOG Resources, Southern Co., Coca-Cola, Microsoft, and Meta Platforms underperformed the market. The Travelers Companies will pay a dividend. PepsiCo stock is seen as undervalued and could climb 12% or more.

• Credit Agricole is reportedly considering purchasing a stake in French digital payments firm Worldline, whose shares have dropped 60% this year. Worldline is evaluating options for asset sales, including its Mobility division and software businesses. The potential acquisition by Credit Agricole aims to stabilize the struggling payments partner. Worldline’s shares surged 5-12% following the reports.

• The Canadian dollar strengthened to a two-month high against the US dollar after better-than-expected jobs data was released. Canada’s unemployment rate rose to 5.8% in November, surpassing pre-pandemic levels for the first time since January 2022.

• Japanese and Hong Kong shares fell, while emerging market stocks and currencies eased. Asian shares decline despite Wall Street’s strong performance, except for India’s SENSEX. Japan’s Nikkei share average set for first weekly drop in five weeks. Asian sharemarkets cautious in December, oil prices continue to decline.

• Exponent, Nasdaq, Automatic Data Processing, Navigator Holdings, Popular, and BlackRock will trade ex-dividend soon, with dividend payments ranging from $0.05 to $5.00 per share.

• European banks face potential losses of £7bn as Signa, owned by billionaire Rene Benko, faces insolvency and a funding requirement of €600m.

• Former Wells Fargo CEO Tim Sloan is suing the bank for over $34 million in withheld pay and stock, seeking damages for emotional distress.

CRYPTO

• Coinbase stock rose 6.6% as Bitcoin reached an 18-month high of $38.9K, driving up crypto-linked stocks and investment funds.

• UK lawmakers warn against creating a digital pound due to risks of bank runs, privacy concerns, and financial exclusion.

• CleanSpark (NASDAQ: CLSK) reports a 15% increase in Q3 revenue and mines a record 666 BTC in November, boosting shares by 17%.

• Coinbase’s Chief Legal Officer, Paul Grewal, raised concerns by selling 10,000 shares, while Gap Inc’s Chief Legal & Compliance Officer, Julie Gruber, sold 30,865 shares, raising similar concerns.

• MicroStrategy’s chairman Michael Saylor bought $593.3 million worth of Bitcoin, increasing the company’s holdings to around $6.5 billion. The company also purchased an additional $5.9 million worth of Bitcoin.