headlines...by halloapp

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11-11-2023

TECH

• Meta Platforms, the parent company of Facebook, has struck a preliminary deal with Tencent to sell a lower-priced VR headset in China, marking its return to the Chinese market after being banned in 2009. Tencent will manufacture and brand the product, and will have the majority split of content and service revenue.

• OpenAI releases GPT Builder for ChatGPT Plus subscribers to create customized chatbots. Novelists express concerns over AI replacing human creativity.

• Apple intends to appeal the European Union’s decision to regulate the App Store and iMessage as anticompetitive services under the Digital Markets Act.

• US restrictions on chip sales to China have spurred a game of “catch me if you can” with Nvidia, leading to accelerated Chinese innovation. Nvidia is developing new AI chips customized for China to maintain market access, while Chinese AI startup 01.AI stockpiled enough Nvidia chips to last 18 months before export restrictions were imposed.

• China’s largest chip maker, SMIC, reported an 80% drop in profit and weak sales due to geopolitical factors and supply chain issues. SMIC has increased its capital expenditure to $7.5 billion for 2023 to purchase chip-making tools amid US sanctions. Major Asian chipmaking stocks, including Hua Hong Semiconductor, declined as well.

• Cellnex Telecom reports strong Q3 performance with increased revenues and plans to repay maturities with asset disposals. Positive free cash flow expected.

• Character.AI is in discussions with Google and venture capital investors to raise funding that could value the company at $5 billion or more, with Google potentially investing hundreds of millions of dollars to support the AI startup’s growth and meet user demand.

• Apple has reached an agreement with Amazon to remove competitors’ ads from Apple product pages, resulting in cleaner search results and fewer recommendations.

• Nvidia and Microsoft are top AI stocks to watch in 2024, while Advanced Micro Devices, Amazon, Super Micro Computer, Micron Technology, Qualcomm, and Schrodinger are also strong AI investment options.

• Bill Gates predicts that within the next five years, AI-powered personal assistants will revolutionize how people live and use computers.

• Humane’s AI Pin is a $699 wearable device that uses AI to answer questions, summarize texts, translate languages, and more. It is not meant to replace smartphones but could be a companion device. Some experts are skeptical about its design and practicality.

• Amazon is recommended as a growth stock with positive earnings estimates and impressive asset utilization ratio. Alphabet has a Zacks Rank #3 and negative returns.

• Japan is allocating $13 billion in a supplementary budget to support its chip industry, including subsidies for chipmakers and support for TSMC. The funds will boost chip design and manufacturing capabilities and support high-end chip production.

MEDIA

• Disney has delayed the release of Deadpool 3 and other Marvel films due to the end of an actors’ strike. The strike has now ended, with a tentative labor agreement reached between SAG-AFTRA and major Hollywood studios. The agreement includes wage increases, streaming bonuses, and protections regarding AI use. Production is set to resume, but scheduling conflicts with A-list actors may impact some projects. The deal has been praised as a landmark standard for performers worldwide by the International Federation of Actors. However, the industry still faces challenges from the decline of linear TV and profitability of streaming services.

• SZA leads the 2024 Grammy nominations with nine nods, surpassing Taylor Swift, Miley Cyrus, and Billie Eilish. Women dominate the categories.

• The Trade Desk reported strong Q3 2023 earnings, with revenue of $493 million, a 25% YoY growth, driven by CTV and retail media. The company expects Q4 revenue to be at least $580 million, representing 18% YoY growth. Despite the strong results, the company’s stock price dropped, presenting a potential buying opportunity. The drop in shares was due to a revenue forecast impacted by spending slowdowns from automakers and media companies affected by strikes. Some analysts see it as a chance to buy the dip, while others express more caution. The company’s strong competitive position and growth potential remain, but concerns about the ad market and the company’s growth trajectory have been raised.

• Prince Harry, along with other high-profile figures like Elton John, can proceed with their lawsuit against the publisher of the Daily Mail, accusing them of unlawful information gathering and phone hacking.

• A biopic on Elon Musk, based on Walter Isaacson’s biography, will be directed by Darren Aronofsky and produced by A24.

• The Beatles’ new single “Now and Then” has topped the UK charts, setting a record for the longest gap between their first and last No. 1 hits.

• The FBI has seized the electronic devices of NYC Mayor Eric Adams as part of a corruption investigation into his 2021 campaign.

• Unity Software Inc. has demonstrated revenue growth and technological leadership, but faces net losses, customer backlash, regulatory challenges, and stock decline.

• ”The Curse” is an uncomfortable and cringe-worthy drama exploring themes of gentrification and wealth, starring Emma Stone and Nathan Fielder.

• A federal judge in Florida has denied Donald Trump’s request to delay his classified documents trial but adjusted pre-trial deadlines.

• Composer Steven Price criticizes Warner Bros. for canceling the film ‘Coyote Vs. Acme’ due to financial reasons, calling it “bizarre anti-art studio financial shenanigans.” Warner Bros. Discovery CEO David Zaslav canceled the film to harvest $30 million in taxable losses.

• LY Corporation and News Corp both reported record high revenues and profitability in their latest quarters, driven by growth in key businesses and digital transformation efforts. They plan to continue driving growth and optimizing value for investors.

• Israeli media advocacy group HonestReporting accepts denials from Reuters, AP, CNN, and The New York Times about prior knowledge of Hamas attack on Israel.

• Liberty Latin America reported strong Q3 results with 44,000 subscriber additions, a 10% increase in adjusted OIBDA, and progress in business integrations.

CONSUMER

• Luxury goods company Richemont’s sales growth for H1 FY24 has slowed down to 6% YoY, causing a decline in stock price. However, profits have improved.

• Savers Value Village shares plummet 23% due to surprise Q3 loss and lowered sales growth expectations. Soho House reports strong Q3 results.

• Davide Renne, Moschino’s new creative director, died suddenly at age 46 just days after joining the fashion house.

• Chinese consumers are approaching Singles’ Day with caution due to economic concerns, leading to lower spending and a focus on low prices. Retailers are offering discounts to attract shoppers, but there are signs of a slowdown in sales and weak consumer confidence.

• Richemont brands are satisfied with the technology provided by Farfetch for their online businesses and are transferring their operations to the platform.

• 1stdibs.com Inc (NASDAQ:DIBS) has seen a 30% rally in recent weeks, but doubts remain about its stock as an investment due to declining sales and profitability. The company reported a Q3 GAAP EPS loss of -$0.08 and a revenue decline of -8.9% year-over-year. The number of active buyers on the platform declined by -7% year-over-year, and the gross merchandise value transacted on 1stdibs decreased by -10%. The company is targeting a -12% decline in Q4 revenue and is not expected to generate a profit through fiscal 2025. Summary: Despite a recent rally, doubts persist about 1stdibs.com Inc’s stock due to declining sales and profitability.

• Ritchie Bros. Auctioneers (NYSE: RBA) exceeded Q3 2023 earnings expectations with $0.72 per share. RB Global’s stock dropped 11% due to the loss of a key customer. However, RB Global reported 17% growth in gross transactional value in Q3 2023.

• PLBY Group Inc, the parent company of Playboy, held its Q3 2023 earnings call, addressing plans for Honey Birdette and potential partnerships, including the licensing business in China. Non-GAAP financial measures were discussed.

• LifeVantage Corporation’s Q1 2024 revenue increased by 6.5%, fueled by strong demand for TrueScience Liquid Collagen. US revenue rose, while overall revenue decreased slightly. Adjusted EBITDA also saw a significant 41% increase.

• Direct Digital Holdings shares rose 37% to $3.56 after beating Q3 earnings expectations, while also raising revenue guidance for 2023.

REAL ESTATE

• Crombie REIT, Plaza Retail REIT, Killam Apartment REIT, and SmartCentres REIT all reported strong Q3 2023 results, with positive growth in occupancy, NOI, and FFO. CareTrust REIT also reported progress and strong investments in Q3 2023.

• Orion Office REIT reports Q3 2023 net loss of $16.5 million and core funds from operations of $24.1 million. Onex Corporation reports solid Q3 earnings with investing capital per share up. City Office REIT and The Joint Corp. report Q3 earnings missing expectations. Onex reports Q3 profit.

• Property company Signa, owned by billionaire Rene Benko, has suspended construction on six development sites in Germany due to financial troubles in the real estate industry. The projects include the Elbtower in Hamburg.

• D.R. Horton, the largest homebuilder in the US, reports strong sales growth despite challenges in the housing market.

• SBB, a Swedish property company, is facing a debt repayment demand from a creditor due to an alleged breach of bond agreement terms.

• Bridge Investment Group Holdings, Inc. had a net loss of $17.9 million in Q3 2023 but raised $303 million in new capital. Bragg Gaming Group Inc. reported Q3 2023 revenue of €22.6 million, up 8% YoY, and extended their agreement with BetCity.

TRAVEL

• Booking.com has partnered with World Travel Holdings to offer US customers access to over 10,000 sailings on 30 cruise lines. Booking Holdings is launching a cruise platform to meet growing demand.

• Travel and wildlife enthusiasts recommend stargazing, fire rituals, cycling in the New Forest, fossil hunting in Whitby, and seal watching in Donna Nook during UK’s dark winter months.

ECONOMIC

• Stocks rise as bond yields fall following dovish comments from Atlanta Fed President Bostic, suggesting no additional rate hikes.

• ICBC’s U.S. unit owes BNY $9 billion due to unsettled trades after a ransomware attack, prompting capital injection from the parent company. The attack was carried out by the LockBit group.

• President Joe Biden will meet with Chinese President Xi Jinping in person on Wednesday in the San Francisco Bay area to discuss various global issues, including trade and managing US-China relations. Thousands of protesters are expected.

• Moody’s downgrades US credit outlook to negative due to political polarization, fiscal deficits, and declining debt affordability.

• UK businesses will receive £27 billion in investment tax breaks to stimulate growth and boost the stagnant economy.

• UK Home Secretary Suella Braverman is facing accusations of interference with the police and using inflammatory language. Pro-Palestine march in London expected to be one of the largest in British history, with concerns of potential violence and clashes with right-wing groups. Rishi Sunak considering potential successors to Braverman amid controversy.

• Crescent Capital BDC, Monroe Capital Corporation, Prospect Capital Corporation, Barings BDC Inc, Banco Bradesco, Logan Ridge Finance Corp, CION Investment Corp, and Greenlight Capital Re, Ltd. all reported strong earnings in Q3 2023.

• US stocks rebounded despite hawkish comments from the Federal Reserve, while Bitcoin and Ether surged following BlackRock’s filing for ETFs.

• US House Republicans to introduce stopgap measure to prevent government shutdown as credit outlook downgraded to “negative.” Speaker faces difficulty in gaining support.

CRYPTO

• Bitcoin rallies, nearing 18-month high of $38,000, with a 110% increase year-to-date, as investors anticipate regulatory approval for Bitcoin ETFs.

• JPMorgan Chase’s Onyx unit has introduced programmable payments using JPM Coin, allowing automated transactions based on specific conditions.

• The South African rand remains stable despite the US Federal Reserve Chair’s comments on potential interest rate hikes.

• SPB Exchange in Russia is seeking legal advice on transferring shares and payments to investors amid a trading halt caused by US sanctions.

HEALTH

• Novo Nordisk plans to acquire smaller companies with drugs in early- to mid-stages of development in diabetes, obesity, and cardiovascular disease. They also plan to invest $6 billion in expanding manufacturing facilities in Denmark for GLP-1 drugs like Wegovy.

• Dexterra Group Inc. exceeded its financial goals in Q3 2023, Xos Inc. achieved positive gross margins, and Xeris Biopharma saw a significant revenue increase.

• AvidXchange, Atea Pharmaceuticals, AVITA Medical, Aveanna Healthcare Holdings, and Zevra Therapeutics reported positive Q3 2023 earnings with revenue increases and improved financial performance.

• Illumina’s stock plummeted 11% after the company cut its financial forecasts and reported a net loss in Q3 2022. They also plan to divest their cancer testing unit GRAIL.

SPORTS

• Michigan football coach Jim Harbaugh suspended for 3 games by Big Ten due to sign-stealing allegations, pending court ruling.

• Tottenham Hotspur’s James Maddison will be out with an ankle injury until January, forcing him to withdraw from England’s squad.

• Caleb Love leads No. 12 Arizona to a 78-73 win over No. 2 Duke with crucial free throws, sealing the victory.