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The WeWork logo is displayed outside of a shared commercial office space building in Los Angeles, California on August 8, 2023. The bankruptcy filing is limited to WeWork's locations in the U.S. and Canada, the company said in a press release. The company reported liabilities ranging from $10 billion to $50 billion, according to a bankruptcy filing. Valued in 2019 at $47 billion in a round led by Masayoshi Son's SoftBank, the company tried and failed to go public five years ago. The company leases millions of square feet of office space in 777 locations around the world, according to its regulatory filings.
Persons: WeWork, Patrick T, Fallon, PATRICK T, FALLON, David Tolley, Masayoshi Son's SoftBank, Adam Neumann, Neumann, Kirkland, Ellis, Cole Schotz, PJT, CNBC's Ari Levy Organizations: Securities and Exchange Commission, SEC, Getty, New York Stock Exchange, CNBC, PJT Partners, C Street Advisory Group, Alvarez, Marsal Locations: Los Angeles , California, AFP, New Jersey, U.S, Canada
Bankman-Fried testified that he wasn't aware of the amount Alameda was borrowing from FTX, or its theoretical max. Prosecutors entered corroborating materials, including encrypted Signal messages and other internal documents that appear to show Bankman-Fried orchestrating the spending of FTX customer money. Similarly, Bankman-Fried testified that he believed the lavish Bahamas properties were being paid for with FTX operating cash that came from revenue and venture investments. The market had already dropped 70% and if it fell another 50%, he was afraid the firm would be insolvent, Bankman-Fried told the jury. In September, he checked in again with Ellison about the hedging activity, Bankman-Fried testified.
Persons: Sam Bankman, Fried, Fatih Aktas, that's, Caroline Ellison, Mark Cohen's, Cohen, FTX, Danielle Sassoon, District Judge Lewis Kaplan, Jane Rosenberg, , Ellison, Sam, Nishad Singh, Gary Wang, Prosecutors, who'd, Michael M, Bankman, wasn't, Alameda, Singh, Shorter, Dawn Giel Organizations: Federal Court, Anadolu Agency, Getty, Alameda Research, U.S, District, Reuters, Stanford University, Alameda, Facebook, Google, Santiago Locations: New York, United States, Manhattan, Bankman, Alameda, Bahamas, New York City, U.S
Alphabet's earnings sailed past Wall Street estimates after the markets closed on Tuesday. In Alphabet's earnings report, Wall Street fretted over the numbers out of the Google Cloud division, which is investing heavily to try and catch Amazon and Microsoft , particularly when it comes to managing hefty artificial intelligence workloads. The concern from Facebook parent Meta was sparked by comments that CFO Susan Li provided on the earnings call regarding the advertising market in the fourth quarter. Alphabet shares are down by about 12% over the past two days, while Meta has dropped roughly 7%. In emphasizing the potential business impact of war in the Middle East on its business, Meta spelled out those concerns to shareholders.
Persons: Meta, Ruth Porat, Susan Li, Li, Mark Zuckerberg, Sundar Pichai, Joe Biden, Mark Avallone, CNBC's, skittishness, You've, Avallone, trashing Organizations: Nasdaq, Apple, Google, Microsoft, Meta, Nvidia, Amazon, The Commerce Department, Hamas, Guggenheim, Potomac Wealth Advisors, YouTube Locations: what's, U.S, Ukraine, Potomac
The $3.5 billion range ($36.5 billion to $40 billion) compares to a $2.5 billion range the company typically offers in its quarterly revenue forecast. Susan Li, Meta's finance chief, told analysts on the earnings call that the reason for the change is the unpredictability in the Middle East due to the Israel-Hamas war. At the mid-point of its guidance range, Meta would be expecting revenue of $38.25 billion, compared to the average analyst estimate of $38.85 billion, according to LSEG, formerly known as Refinitiv. For the third quarter, Meta beat on the top and bottom lines, boosting its shares in extended trading on Wednesday. Meta's commentary surrounding the Middle East conflict, which escalated this month after Hamas attacked Israel, follows cautionary statements from Snap on Tuesday.
Persons: Susan Li, Li, Meta, Joe Biden Organizations: Meta, White Locations: Israel, Ukraine, Russia, Gaza
Prosecutors in the criminal trial against FTX founder Sam Bankman-Fried compared one of the defense's arguments to a scene in the 1994 film "Dumb and Dumber," in which actor Jim Carrey says IOUs are "as good as money." Funds also allegedly went to paying for things such as a $35 million property in the Bahamas and political donations. Customers were ultimately unable to retrieve much of their money as FTX and Alameda were simultaneously imploding. In a footnote, the prosecution writes, "A popular movie from the 1990s illustrates the point: a briefcase, once filled with money, is not the same as a briefcase later filled with IOUs." In "Dumb and Dumber," when the briefcase reaches its owner, it's filled with paper.
Persons: Sam Bankman, Jim Carrey, IOUs, Judge Lewis Kaplan, who's, Carrey, Jeff Daniels, transact, Lloyd Christmas Organizations: Prosecutors, FTX, Manhattan, Southern, of, York, Alameda Research Locations: Manhattan, New York City, Colorado, Bahamas, Alameda
Tech stocks are following up their worst month of the year with a rough start to October as a spike in interest rates pushes investors out of risky assets. Like most tech stocks that were viewed as growth engines during the Covid-19 pandemic, Airbnb rallied in 2021 — just after its Nasdaq debut — and then sank last year. It has bounced back in 2023 but rising interest rates and ongoing concerns about high energy prices and the potential for a recession have investors rotating out of the stock of late. Among mega-cap tech stocks, Amazon suffered the steepest drop, falling 3.7% to $124.72. Amazon is coming off its worst month since February as the company faces the potential of a disappointing holiday shopping season and a massive antitrust lawsuit from the Federal Trade Commission.
Persons: it's, Airbnb, Organizations: Nasdaq, KeyBanc, Treasury, Federal Reserve, Amazon, Federal Trade Commission, Microsoft, Meta
After a 21-month tech IPO freeze, the market has cracked opened in the past week. Chip designer Arm debuted last Thursday, followed by grocery-delivery company Instacart this Tuesday, and cloud software vendor Klaviyo the following day. They're three very different companies in disparate parts of the tech sector, but Wall Street's reaction has been consistent. Instacart popped 40% immediately after selling shares at $30. But the lack of excitement over the past week — amounting to a collective "meh" across Wall Street — is certainly not the desired outcome either.
Persons: Arm, Eric Juergens, Plimpton, Juergens, Japan's SoftBank, Fidji Simo Organizations: Investors, Debevoise Locations: Klaviyo
Klaviyo priced 19.2 million shares late Tuesday at $30 a piece, valuing the company at just over $9 billion on a fully diluted basis. Of those shares, 11.5 million were sold by the company, resulting in $345 million in cash added to the balance sheet. Instacart and Klaviyo are trying to crack open a tech IPO market that's been virtually shuttered for 21 months. The e-commerce software vendor owns roughly 11% of Klaviyo's shares, and invested $100 million in the company last year. — CNBC's Annie Palmer contributed to this reportWATCH: Klaviyo follows Instacart in tech IPO down rounds
Persons: Andrew Bialecki, Ed Hallen, Instacart, Arm, Japan's SoftBank, Klaviyo, Shopify, Bialecki, , Annie Palmer Organizations: New York Stock Exchange, Inc, Nasdaq, Klaviyo's, CNBC Locations: Weds, U.S
Instacart shares rose 12% in their Nasdaq debut on Tuesday after the grocery delivery company's long-awaited IPO. The stock initially popped 40% to open at $42, but closed at $33.70 as investors locked in their initial gains. At $11.2 billion, Instacart is valued at about 3.9 times annual revenue. Food delivery provider DoorDash , which Instacart named as a competitor in its prospectus, trades at 4.1 times revenue. Uber's stock trades for less than three times revenue.
Persons: Instacart, Andreessen Horowitz, Rowe Price, company's Uber, Fidji Simo, CNBC's Deirdre Bosa, It's, Brandon Leonardo, Maxwell Mullen, Apoorva Mehta Organizations: Nasdaq, Software, Kroger, Costco, Sequoia, Fidelity, Target, Walmart Locations: Tuesday's, U.S, Amazon
Instacart, the grocery-delivery company that saw its business boom during the pandemic, priced its long-awaited IPO at $30 a share on Monday, and will become the first notable venture-backed tech company to hit the U.S. public market since December 2021. There were 22 million shares sold in the initial public offering, with 14.1 million coming from the company and 7.9 million from existing shareholders. Instacart co-founder Apoorva Mehta owns shares worth over $800 million, and is selling a small portion of them in the IPO. The company said co-founders Brandon Leonardo and Maxwell Mullen are each selling 1.5 million, while Mehta is selling 700,000. Former employees, including those who were in executive roles as well as in product and engineering, are selling a combined 3.2 million shares.
Persons: Instacart, Andreessen Horowitz, Rowe Price, Apoorva Mehta, Mehta, Fidji Simo, Simo, Goldman Sachs, JPMorgan Chase, Brandon Leonardo, Maxwell Mullen Organizations: Nasdaq, Kroger, Costco, Sequoia, Fidelity, Target, Walmart, Facebook, JPMorgan Locations: Amazon
That's more than 75% below where Sequoia and Andreessen invested in early 2021. At that time, Instacart sold shares at $125 a piece for a $39 billion valuation. The 400,000 shares it purchased in 2021 are a small sliver of the 51.2 million shares it owns. Neither Sequoia nor Andreessen participated in that round. Even if Instacart's IPO can't lift its valuation anywhere near its Covid-era peak, it's likely that Sequoia, Andreessen and other venture firms are hoping it helps lift public investor enthusiasm for new tech stocks.
Persons: Andreessen Horowitz, Instacart, Andreessen, Covid shutdowns, Nick Giovanni, Sequoia's Mike Moritz, Rowe Price, It's, haven't, VCs, DoorDash, hasn't, there's, isn't, Valiant Peregrine Organizations: Sequoia Capital, D1 Capital Partners, Federal Reserve, Consumers, Nasdaq, Sequoia, Valiant, D1 Locations: Sequoia, IPOs, U.S, Instacart, SoftBank
That's more than 75% below where Sequoia and Andreessen invested in early 2021. At that time, Instacart sold shares at $125 a piece for a $39 billion valuation. The 400,000 shares it purchased in 2021 are a small sliver of the 51.2 million shares it owns. Neither Sequoia nor Andreessen participated in that round. Even if Instacart's IPO can't lift its valuation anywhere near its Covid-era peak, it's likely that Sequoia, Andreessen and other venture firms are hoping it helps lift public investor enthusiasm for new tech stocks.
Persons: Andreessen Horowitz, Instacart, Andreessen, Covid shutdowns, Nick Giovanni, Sequoia's Mike Moritz, Rowe Price, It's, haven't, VCs, DoorDash, hasn't, there's, isn't, Valiant Peregrine Organizations: Sequoia Capital, D1 Capital Partners, Federal, Consumers, Nasdaq, Sequoia, Valiant, D1 Locations: Sequoia, IPOs, U.S, Instacart, SoftBank
Arm CEO Rene Haas and executives cheer, as Softbank's Arm, chip design firm, holds an initial public offering (IPO) at Nasdaq Market site in New York, U.S., September 14, 2023. Arm's Nasdaq debut on Thursday looks good for SoftBank, which just spun the company out after acquiring it in 2016. The UK-based chip design company saw its stock jump 25% to $63.59 after its IPO, lifting the company's fully diluted market cap to almost $68 billion. For now, there's not a big open market for Arm's stock. Of the $4.9 billion worth of shares SoftBank sold, $735 million were purchased by a group of strategic investors including Apple , Google , Nvidia, Samsung and Intel .
Persons: Rene Haas, Jay Ritter, there's, SoftBank, Masayoshi Son, We've, CNBC's David Faber, Matt Oguz, it's, , Oguz, Kif Leswing, SoftBank's Masayoshi, Arm's Rene Haas Organizations: Nasdaq, Wall, Nvidia, Semiconductor, U.S, University of Florida, Apple, Google, Samsung, Intel, Venture Science, AMD Locations: New York, U.S
As some high-valued tech startups look to the long-dormant IPO market for their next funding round, Databricks is still finding investors that are happy to keep the company private, at least for now. Databricks, which sells data analytics software, said Thursday that it raised more than $500 million in fresh capital at a $43 billion valuation. Founded in 2013 and based in San Francisco, Databricks last announced funding during the boom market of 2021, at a $38 billion valuation. However, unlike fellow software IPO candidates Canva and Stripe, Databricks has managed to maintain its share price. In the latest round, shares were sold at $73.50 a piece, roughly equal to where they were priced in 2021.
Persons: Databricks, Snowflake, Ali Ghodsi, Headcount Organizations: Nvidia Locations: San Francisco, Databricks
Birkenstock, the iconic sandal maker founded in 1774, filed its paperwork for an initial public offering on Tuesday, and warned investors of the risks posed by counterfeit brands that use social media to promote their products. "In the past, third parties have established websites to target users on Facebook or other social media platforms with 'look alike' websites intended to trick users into believing that they were purchasing Birkenstock products at a steep discount," the filing said. "Should counterfeit products be successfully sold on e-commerce platforms managed by third parties, our brands and reputation could be damaged." Seven years ago, Birkenstock publicly quit Amazon in the U.S. due to an eruption of counterfeit and unauthorized sales on the site. The company also said at the time that it would no longer allow authorized Birkenstock merchants to sell on Amazon.
Persons: Birkenstock Organizations: New York Stock Exchange, Facebook, Amazon Locations: Germany, London, U.S
Oracle shares plummeted 12% on Tuesday, their steepest drop in over two decades, after the software maker reported disappointing revenue and issued weaker-than-expected guidance. For the current quarter, Oracle said revenue will increase 5% to 7%, falling short of the 8% average analyst estimate. Revenue in Oracle's cloud services and license support segment rose 13% from a year earlier, topping StreetAccount's consensus of $9.44 billion. But sales in the cloud license and on-premises license segment fell 10% to $809 million, missing estimates. Even with Tuesday's stock drop, Oracle shares are up 34% year to date, beating the S&P 500, which is up 16%.
Persons: Larry Ellison, Ellison, Jeff Bezos, Warren Buffett, Stifel, Safra Catz, Catz, — CNBC's Jordan Novet Organizations: Oracle, Forbes, Amazon, Human Capital Management Software, Revenue
Instacart filed an updated IPO prospectus Monday and clarified how its contract works with data storage and analytics company Snowflake , after the initial filing appeared to show a dramatic decline in spending on Snowflake's technology. The apparent slippage led to confusion and spurred employees at rival Databricks to suggest online that it was picking up that business. "These cash payments, including the payments we made in 2022, generally represent prepayments for future services which, in many cases, span multiple fiscal periods," Instacart wrote. For both 2021 and 2022, Instacart said it incurred operating expenses tied to the cloud technology of $28 million. Instacart isn't required to disclose its relationship with Databricks, but both companies published recent posts about the implementation on their websites.
Persons: Instacart, Snowflake, Frank Slootman, Databricks, it's Locations: Databricks
WeWork CEO David Tolley, who took over the office-sharing company in an interim role in May, wrote in a public letter Wednesday that the embattled business is "here to stay" and that it's immediately undergoing an effort to rework its leases worldwide. "Today, we are kicking off a process of global engagement with our landlords to renegotiate nearly all our leases," Tolley wrote. The latest chapter in the extended WeWork saga involves the company trying to stay solvent. But the combination of Covid-19 shutdowns and the sputtering economy that followed have left WeWork with massive leases in buildings that are underoccupied and worth far less than what the company paid. "Let me finish by making one thing clear: WeWork is here to stay," Tolley wrote.
Persons: David Tolley, it's, Tolley, SoftBank, WeWork, Marcelo Claure Organizations: New York Stock Exchange
One of Instacart's board members is Frank Slootman, the CEO of Snowflake , a publicly traded company that helps businesses store and manage hefty workloads in the cloud. Slootman joined Instacart's board in 2021 and, because of that relationship, the company has to disclose its business ties to Snowflake. In May, the company published a blog post titled "How Instacart Ads Modularized Data Pipelines With Lakehouse Architecture and Spark." The post, which described software underpinning Instacart's ads infrastructure, included discussion of a migration to Databricks' Lakehouse technology and the cost savings that followed. Representatives from Instacart, Snowflake and Databricks declined to to comment.
Persons: Frank Slootman, Slootman, Instacart, Snowflake, Databricks pounced, Databricks, You've Organizations: Inc, New York Stock Exchange, Employees, Twitter Locations: Snowflake, Instacart
Tech IPOs are coming back — now they have to perform
  + stars: | 2023-08-28 | by ( Ari Levy | ) www.cnbc.com   time to read: +3 min
It's been 20 months since a notable venture-backed tech company went public in the U.S., and the chatter in Silicon Valley has centered around who will break the ice. The three companies have very little in common, but collectively they represent a test of the excitement level among public market investors for new opportunities. Depending on how they perform out of the gate, their offerings could propel others to follow in the fourth quarter. By "yesteryear," Buyer is referring to the kinds of valuations tech companies were achieving in 2020 and 2021, which were record years for tech IPOs. DoorDash, which is probably Instacart's closest public market comparison, currently trades at 3.8 times revenue.
Persons: It's, Japan's SoftBank, Lise Buyer, yesteryear, DoorDash, Andreessen Horowitz Organizations: Nasdaq, V, Software, Sequoia Locations: U.S, yesteryear
Users of X, formerly known as Twitter, will no longer be able to block comments from unwanted followers, according to a post by X owner Elon Musk on Friday, eliminating what's long been viewed as a key safety feature. "Block is going to be deleted as a 'feature', except for DMs," Musk wrote Friday. The mute feature just keeps the individual user from seeing the undesired responses, but doesn't eliminate them from others' feeds. Twitter users have also long employed the block feature in boycotts and to avoid seeing ads from specific brands or promoters on the platform. Binance CEO Changpeng Zhao, an investor in the new Twitter alongside Musk, said in a post that the company should focus its attention elsewhere.
Persons: Elon Musk, Musk, Changpeng Zhao, Zhao, Louis Jones, Jones, — CNBC's Lora Kolodny Organizations: Twitter, DMs, Tesla, Brand Safety, CNBC
WeWork , the office-sharing company once valued at $47 billion, said Friday it will undergo a 1-for-40 reverse stock split to try and keep its stock from being delisted. "The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange," WeWork said in a filing with the SEC. The reverse split will take effect after the close of trading on Sept. 1, the company said. The move will do nothing to improve the company's financials or valuation but, based on Friday's close, it would lift the stock price to $5.60. With or without a higher stock price, WeWork is in dire straits.
Persons: WeWork, Masayoshi Son's SoftBank, Andrew Ross Sorkin, Adam Neumann Organizations: New York Stock Exchange, SEC, NYSE
Arora Nikesh, Palo Alto Networks CEO & Chairman at the WEF in Davos, Switzerland on May 23rd, 2022. Palo Alto Networks shares jumped as much as 9% in extended trading on Friday after the security software vendor reported earnings that exceeded analysts' estimates. Revenue in its fiscal fourth quarter increased 26% from $1.6 billion a year earlier, Palo Alto said. Palo Alto announced its earnings date on Aug. 2. WATCH: Jim Cramer interviews Palo Alto Networks CEO Nikesh Arora
Persons: Arora, Palo, Nikesh Arora, Jim Cramer Organizations: Palo Alto Networks, Refinitiv, Refinitiv ., Refinitiv . Revenue, Palo, Palo Alto Locations: Palo, Davos, Switzerland, Refinitiv ., Palo Alto, West
DeSantis says he would ban TikTok because of China threat
  + stars: | 2023-08-14 | by ( Ari Levy | ) www.cnbc.com   time to read: +1 min
Ron DeSantis told CNBC that he would likely ban TikTok if given the opportunity because the social media app is owned by a Chinese company. DeSantis, who trails Donald Trump in the race to become the 2024 Republican presidential nominee, was broadly critical of U.S. policy toward China in the interview. "There's a reason why stuff has been outsourced to China, because it can be done cheaper and people can make more money," DeSantis said. More recently, Congress introduced new bills earlier this year that would allow the Biden administration to ban TikTok. DeSantis referred to the bills as "too heavy-handed," claiming they would "invade peoples' privacy," but he said he would still probably support a ban.
Persons: Ron DeSantis, DeSantis, CNBC's Brian Sullivan, Donald Trump, TikTok, Trump, Biden, They've Organizations: Florida Gov, CNBC, Republican Locations: Florida, China, U.S, Washington, United States
Apple CEO Tim Cook stands next to the new Apple Vision Pro headset is displayed during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. The last time technology stocks had a better first half, Apple was touting its Lisa desktop computer, IBM was the most-valuable tech company in the U.S. and Mark Zuckerberg hadn't been born. It's a startling achievement, given what's happened in the tech industry over the past four decades. Meta and Tesla , which both got hammered last year, have more than doubled in value so far in 2023. Nvidia shares soared 190% in the first half, lifting the 30-year-old company's market cap past $1 trillion.
Persons: Tim Cook, Apple, Mark Zuckerberg hadn't, Zuckerberg, Tesla, OpenAI, Bryn Talkington, CNBC's Organizations: Apple, Apple Vision, Apple Worldwide, IBM, Nasdaq, Microsoft, Silicon Valley Bank, Federal Reserve, Meta, Facebook, Google, Nvidia, Capital Management Locations: Cupertino , California, U.S
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