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11-30-2023

TECH

• SaaS stocks, including Salesforce and Snowflake, are surging as investors gain confidence in the economy. Salesforce reported better-than-expected Q3 earnings and raised guidance for fiscal 2024. The Federal Reserve’s preferred inflation measure, the PCE index, showed that price hikes are at their slowest rate since late 2020. Eurozone inflation dropped to 2.4% in November, the slowest pace since July 2021. The US economy grew at a revised rate of 5.2% in Q3, higher than previous estimates of 4.9%. German inflation in November fell to 2.3%, the lowest level since June 2021.

• OpenAI’s decision to exclude Microsoft and other investors from its board raises uncertainty and benefits rivals.

• Apple Inc. stock fell 0.54% on Wednesday, outperforming Microsoft and Alphabet. C.H. Robinson Worldwide Inc. stock fell 1% and underperformed its competitors. Amazon.com Inc. stock fell 0.48% but outperformed Apple, Microsoft, and Alphabet.

• Amazon Web Services (AWS) has launched the Amazon Titan Image Generator, an AI-powered tool for creating and enhancing images using natural language prompts. It includes invisible watermarks to identify AI-generated images and reduce harmful content.

• Okta, a cloud-native security company, reported strong Q3 earnings but faced a stock slump due to a weak revenue outlook and a major data breach affecting all customers.

• OpenAI’s ChatGPT, released a year ago, has become the company’s most popular and fastest-growing consumer app, revolutionizing the tech industry and prompting widespread adoption of AI.

• ASML CEO Peter Wennink is retiring in April 2024 and will be succeeded by Christophe Fouquet, pending shareholder approval.

• European consumer groups, including the BEUC, have filed complaints against Meta Platforms, alleging that its ad-free subscription service violates EU consumer laws. They argue that the service’s high subscription fees and unfair practices deter users from protecting their privacy.

• CEO Emad Mostaque is facing pressure to resign from shareholder Coatue Management due to alleged leadership issues.

• Apple announces winners of 2023 App Store Awards, with generative AI named trend of the year. Winners include AllTrails and Photomator.

• Google DeepMind’s AI has predicted over 2 million new materials, potentially improving technologies like batteries and solar panels.

• Nutanix reported strong Q1 2024 financial results, with record revenue of $511 million and a 30% YoY growth in ARR. The company also announced wins with federal agencies and a major expansion agreement with a bank in the Asia Pacific region. Nutanix is focused on partnerships and sees steady demand for its solutions.

• Starting from December 1, Google will delete inactive Gmail and Photos accounts that have been unused for at least two years, urging users to log in and save their data.

• The UK CMA has won an appeal to investigate Apple’s dominance in mobile browsers and cloud gaming services.

• CrowdStrike reports strong financial performance, surging stock, positive analyst outlook, and record Q3 results with $223 million net new ARR.

• Pure Storage stock tumbled nearly 15% after disappointing guidance for Q4 due to business model transition and delayed orders.

• Adobe is acquiring Figma for $20 billion and is addressing anti-competition concerns from EU regulators regarding the deal.

MEDIA

• Disney CEO Bob Iger to step down in 2026, expresses disappointment in successor Bob Chapek. ABC network not up for sale.

• Google has reached an agreement with the Canadian government to pay news publishers around $100 million CAD annually.

• Disney has added Morgan Stanley CEO James Gorman and former Sky CEO Jeremy Darroch to its board amidst shareholder challenges.

• Netflix will release the Grand Theft Auto trilogy on December 14, boosting its video game business with updated mobile versions.

• Shane MacGowan, the celebrated Irish singer and songwriter with The Pogues, has died at 65 after struggling with alcohol and drug addiction.

• Israeli forces kill one person and injure several others as Palestinians gather near a West Bank prison for prisoner release.

• Spotify Wrapped 2023 is now available, revealing users’ top songs, artists, and podcasts, with Taylor Swift named the most-streamed artist.

• Paste Magazine has acquired feminist website Jezebel after it was shut down, with plans to relaunch and preserve its voice.

• Spotify Wrapped’s new feature, Sound Town, assigns users to cities based on their listening habits, with Burlington, Vermont being a popular choice.

• Chinese video-sharing platform Bilibili’s Hong Kong-listed shares fell 12% after reporting a Q3 net loss of CNY1.35 billion ($189.3 million), higher than expected. However, Bilibili also reported strong user growth and positive operating cash flow in Q3 2023.

• Actor Jonathan Majors is currently on trial for assault and harassment charges in New York City. The trial has begun and he has pleaded not guilty.

• Senator Chuck Schumer, the highest-ranking Jewish member of Congress, condemns the rise of antisemitism and warns against its connection to the pro-Palestinian effort and recent attacks on Jewish people.

• Two Republican county supervisors in Arizona charged with felonies for refusing to certify the 2022 election results.

CONSUMER

• Dollar Tree reports 5.4% increase in net sales but decline in net income, potential disruptions in global supply chain.

• Foot Locker reports strong Q3 sales, boosted by holiday discounts, and increases its non-Nike brand assortment to 36% of sales.

• Blackstone is acquiring pet-sitting marketplace Rover Group for $2.3 billion in an all-cash deal, causing Rover’s shares to surge.

• Dr. Martens shares fell 28% after issuing a profit warning due to slow recovery in the US market. The company plans to sell pre-owned and refurbished boots to attract cost-conscious shoppers. Sales and profits have declined, particularly in the US market.

• PDD is set to overtake Alibaba in market capitalization, becoming China’s most valuable e-commerce firm with a market value of $188.3 billion. Alibaba’s market value has dipped below PDD’s, marking a significant shift in the industry. Alibaba co-founder Jack Ma has praised PDD and called on Alibaba to correct its course after its market valuation fell to $190 billion. PDD’s strong Q3 results have boosted its stock, while Alibaba’s plans to spin off its Cloud Intelligence Group were scrapped.

• Victoria’s Secret reported a larger-than-expected loss of $71.2 million in Q3, with a 4% decline in revenue to $1.27 billion.

• Shares of Farfetch Ltd. plummeted nearly 50% after Richemont announced it will not invest further in the luxury e-commerce company. Farfetch cancelled its Q3 earnings call and is considering going private.

• Birkenstock shares reach IPO price of $46 for the first time following strong holiday shopping season and lackluster IPO market.

• Zubale, an e-commerce startup, plans to expand in Brazil and Mexico with a $25 million capital injection from investors.

REAL ESTATE

• European property and retail giant Signa, owned by Austrian tycoon René Benko, has declared insolvency due to the property crash in Europe. The company has debts of around $5.5 billion and owns high-profile projects and department stores across Germany, Austria, and Switzerland. This puts several construction projects at risk and raises concerns about the wider property sector. Bonds issued by Signa have also significantly dropped in value.

• China Evergrande Group, the world’s most indebted property developer, is seeking to avoid liquidation with a last-minute debt restructuring proposal.

• The US EPA proposes replacing all lead pipes within 10 years to address racial disparities and environmental issues, with $15 billion in funding allocated.

• Singapore and Zurich are tied as the world’s most expensive cities in 2023, followed by Geneva, New York, and Hong Kong, according to the Economist Intelligence Unit.

• Refinance rates for fixed mortgages have dropped, ranging from 6.80% to 7.64%. Average mortgage rates and student loan rates have also decreased.

ECONOMIC

• Charlie Munger, Warren Buffett’s long-time investing partner, has passed away at the age of 99. Munger played a significant role in the success of Berkshire Hathaway and influenced Buffett’s investment strategy.

• Rep. George Santos, a Republican congressman from New York, is facing potential expulsion from Congress due to fraud charges and misconduct.

• Global Payments Inc. stock rose 0.74% to $116.36, outperforming the market for the fifth consecutive day.

• Toronto-Dominion Bank’s net income declined by 57% in Q4, while Royal Bank of Canada (RBC) reported better-than-expected profit.

• China’s factory activity contracted for the second consecutive month in November, with the manufacturing PMI dropping to 49.4, indicating weak demand and the need for government support measures.

• JPMorgan predicts an 8% drop in the S&P 500 next year due to a challenging economy, softening consumer trends, and geopolitical risks.

• Apple is seeking to end its partnership with Goldman Sachs for the Apple Card within the next 12 to 15 months.

• Hong Kong and Japanese shares rose on Thursday, with Hang Seng Index up 0.3% and Nikkei 225 up 0.5%. Japan’s industrial production in October exceeded expectations, driven by automotive and electronics sectors.

• Conservative Supreme Court justices express skepticism about SEC’s in-house tribunals, potentially impacting agency enforcement and other regulatory agencies.

• The next generation of billionaires will inherit more wealth than they accumulate through work, according to a UBS study. Inherited wealth exceeded self-made wealth for the first time, with heirs receiving $150.8 billion compared to $140.7 billion earned by self-made billionaires. UBS expects 1,000 billionaires to transfer $5.2 trillion to their children in the coming decades.

CRYPTO

• The US Treasury has sanctioned cryptocurrency mixers Sinbad, Tornado Cash, and Blender.io for facilitating money laundering and aiding cybercriminals.

• Robinhood is expanding into the UK, offering commission-free trading of US stocks and ADRs, with plans to launch in early 2023.

• SoFi is exiting the crypto market and asking customers to move their accounts to Blockchain.com by December 19 to avoid tax consequences.

• Bitcoin experiences a setback as it struggles to surpass the $38,000 price level, though traders suggest buying during pullbacks.