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☆ Layoffs have already started at Elon Musk's Twitter. Here's what we know so far.
▼ + stars: | 2022-11-04 | by ( Jordan Parker Erb | ) www.businessinsider.com time to read: +5 min

Elon Musk began to terminate Twitter staffers last night, insiders told us. Last night Elon Musk's Twitter broke its silence with employees and sent a memo to staffers confirming that much-anticipated layoffs were happening the following day (so, today). But staffers told us the terminations started shortly after that email went out. Workers suddenly started to get locked out of services like Slack and email around 8 p.m. PT on Thursday night, multiple employees told Insider. Citing an "unusual macro-economic environment," Amazon told staff it'd put a pause on new corporate hires.

☆ A hiring freeze finally comes to Amazon Web Services as enterprise spending slows
▼ + stars: | 2022-11-03 | by ( Katherine Long | Ashley Stewart | ) www.businessinsider.com time to read: +3 min

Meanwhile, at least two AWS engineering orgs are planning to freeze headcount until the end of 2023, according to two current employees. People who depart may be replaced, but the goal is to keep total headcount static, according to two of the current employees. AWS reported its slowest revenue growth ever last quarter, which Olsavsky attributed to reduced enterprise spending as cloud customers gird themselves for potential economic turmoil. Amazon announced a hiring freeze in its advertising business on Tuesday, Bloomberg reported. The New York Post reported last week on a hiring freeze in AWS.

☆ Amazon sell-off pushes market cap below $1 trillion for first time since April 2020
▼ + stars: | 2022-11-01 | by ( Ashley Capoot | ) www.cnbc.com time to read: +1 min

Shares of the e-retailer plunged 5.9% on Tuesday, falling for a fifth straight day and closing at their lowest since April 2020. Amazon said revenue during the holiday quarter would grow 2% to 8% over the year-ago period, far below analysts' estimates. It's the first time Amazon's market cap has been below $1 trillion since April 2020. Like the rest of Big Tech, Amazon has struggled this year due to a slumping economy, soaring inflation and rising interest rates. Meta told investors last week that revenue in the fourth quarter would likely decline for a third straight period.

☆ Oracle layoffs finally hit its all-important cloud unit, as sources say as many as 200 are laid off
▼ + stars: | 2022-11-01 | by ( Ashley Stewart | ) www.businessinsider.com time to read: +1 min

Oracle laid off as many as 200 employees in its cloud unit on Tuesday, two sources tell Insider. The cloud unit has largely been insulated from layoffs this year. Oracle's cloud unit on Tuesday laid off as many as 200 employees, according to two people familiar with the matter. The company has had layoffs throughout the year, but its important Oracle Cloud Infrastructure (OCI) unit has been insulated unit now. Oracle last week began layoffs in a separate cloud unit, North America Cloud Infrastructure & Technology (NACT) unit, according to internal emails viewed by Insider.

☆ 3 ways that Amazon's advertising business is becoming as dominant as Google's
▼ + stars: | 2022-10-31 | by ( Lauren Johnson | ) www.businessinsider.com time to read: +4 min

Amazon's advertising ambitions used to be focused on search ads to promote products available through Amazon's marketplace. But today, Amazon's ad business is the third biggest seller of digital advertising, behind Google and Meta, and that business drove $31 billion in revenue in 2021. Amazon Advertising is further extending its influence beyond its platform and across the entire internet, much like Google's sprawling advertising business. Amazon is using its giant cloud business AWS to make ads more powerful both on and off Amazon sitesAmazon has traditionally separated its advertising business from other business units like AWS, but those lines are gone. Amazon's adtech products that use AWS' technology exemplify how Amazon's ad business is proliferating across the digital advertising industry, and competing much more directly with Google than in the past.

☆ What our Big Tech holdings signaled on expenses and hiring this earnings season
▼ + stars: | 2022-10-31 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +11 min

We want to see that happen with the Club's holdings, so we paid close attention to what management teams at our Big Tech stocks signaled on costs during this mixed earnings season. Head count grew by 22% on an annual basis, 6 percentage points of which was due to acquisitions that closed in the prior two quarters. "Our sequential head count growth from Q1 to Q2 will be minimal. ... We've added a lot of head count over the past 12 months, and we want to make sure we use those head count in the most productive way possible," Hood said this week. "We are holding some teams flat in terms of head count, shrinking others, and investing head count growth only in our highest priorities," Wehner said.

☆ Big Tech falters on dreary earnings and forecasts for Q4— Meta has worst week ever, Amazon tumbles 13%
▼ + stars: | 2022-10-28 | by ( Jordan Novet | ) www.cnbc.com time to read: +4 min

Other than Apple , it was a brutal earnings week for Big Tech. Alphabet , Amazon , Meta and Microsoft combined lost over $350 billion in market cap after offering concerning commentary for the third quarter and the remainder of the year. Between slowing revenue growth — or declines in Meta's case — and efforts to control costs, the tech giants have found themselves in an unfamiliar position after unbridled growth in the past decade. In Amazon's ad business, revenue growth accelerated to 30% from 21%, topping analysts' estimates. Analyst Aaron Kessler at Raymond James lowered his price target on Amazon stock to $130 from $164 after the results.

Cloud services for years has been one of the largest and most dependable sources of growth for some of the biggest tech companies, including during the pandemic as people worked and studied from home. Growth in Amazon Web Services (AWS), the firm's lucrative cloud unit serving enterprises, has ticked down consistently in the past four quarters, adjusted for changes in forex. "The AWS slowdown is a clear sign that businesses are beginning to trim costs, so this will likely put more of a squeeze on Amazon's bottom line in the coming quarters," said Andrew Lipsman, principal analyst at Insider Intelligence. Alphabet's Google Cloud revenue grew 38% in the quarter, beating estimates. Cloud services typically help companies save money so budget cuts in this sector could be especially worrying, indicating that companies think cost is king going into tougher times.

☆ Here's a round up of 8 price target changes we made in Club stocks post earnings
▼ + stars: | 2022-10-28 | by ( Matthew J. Belvedere | ) www.cnbc.com time to read: +5 min

Here's a rundown of the price target changes we recently made in Jim Cramer's Charitable Trust, the portfolio we use for the CNBC Investing Club. However, we cut our price target to $140 per share from $160, acknowledging headwinds due to rising interest rates and lower earnings estimates. We lowered our price target for the Google parent to $130 per share from $160. Microsoft (MSFT): Despite our longer-term positive view, we reduced our price target to $300 per share from $375. We said Tuesday evening that Microsoft's fiscal second-quarter guidance will likely lead to downward earnings and price target revisions from analysts on Wall Street.

☆ Amazon's operating margins could nearly double in 2023, says CFRA's Arun Sundaram
▼ + stars: | 2022-10-28 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAmazon's operating margins could nearly double in 2023, says CFRA's Arun SundaramArun Sundaram of CFRA joins 'Closing Bell' to discuss slows in top-line growth, Amazons capital investment in to its fulfillment services and supply chain network, and Amazon Web Services customers cutting costs.

☆ The Rings of Pain: Amazon is looking where to cut costs. Here's how the company will decide who is put to the sword and who is spared.
▼ + stars: | 2022-10-28 | by ( Katherine Long | ) www.businessinsider.com time to read: +3 min

Amazon is looking for areas to cut costs, CFO Brian Olsavsky said. Amazon is "looking for areas where we can save money," he said on a conference call Thursday. Which divisions get the ax will be based in part on their ability -- or lack thereof -- to contribute to Amazon's growth, Olsavsky told reporters. Amazon Web Services posted 27% revenue growth last quarter, its slowest growth rate since Amazon began breaking out the division in its financial statements. Amazon's advertising division also saw revenue growth moderate compared to a year ago, to 30% – but it outperformed advertising behemoths Google and Facebook.

☆ Analysts remain confident in Amazon long term as shares crater, expect 'redemption story' ahead
▼ + stars: | 2022-10-28 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Amazon 's disappointing quarterly results signaled to analysts that even the giants aren't immune to a macro slowdown. Analysts trimmed price targets and estimates to reflect a broader macro slowdown at the e-commerce giant following the results, with analysts at Deutsche Bank and Wolfe Research saying it's time to "batten down the hatches." However, most analysts remain bullish on the company's long-term trajectory, maintaining their outperform and buy ratings on the stock. That said, analysts across the board trimmed price targets and estimates to reflect the broader macro pressures. He trimmed his price target on the stock to $137 from $157 a share, suggesting 23% upside ahead for the stocks.

☆ Cloud Growth Continues Amid Tough Time for Tech
▼ + stars: | 2022-10-27 | by ( Steven Rosenbush | ) www.wsj.com time to read: +3 min

The growth of cloud computing has slowed a bit this year but remains one of the most resilient sectors in a generally tough environment for technology companies. That outpaces overall company sales growth of 15%. Spending on cloud computing “will fluctuate with the broader economic picture,” Mr. Sustar said. People might want to rationalize their cloud spending, but overall cloud growth will continue and be a larger and larger part of the IT budget,” he said. In other words, cloud growth will continue, but it won’t look like a bubble.

☆ Analysis: Cloud Growth Continues Amid Tough Time for Tech
▼ + stars: | 2022-10-27 | by ( Steven Rosenbush | ) www.wsj.com time to read: +3 min

☆ Amazon stock falls nearly 20% on light holiday quarter sales forecast
▼ + stars: | 2022-10-27 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +2 min

CNN —Amazon (AMZN) stock fell nearly 20% in after-hours trading Thursday after the company forecast its holiday quarter sales would be lighter than analysts had expected. The weaker forecast comes as rising inflation and looming recession fears weigh on consumer purchasing decisions. Amazon reported revenue of $127.1 billion for its third-quarter, a 15% increase from the prior year but just missing Wall Street estimates. The company reported its Amazon Web Services segment sales increased 27% year-over-year to $20.5 billion – representing a slower pace of growth for a closely-watched business unit than Wall Street had expected. Amazon initially saw its business boom during the pandemic, as more consumers relied on online shopping.

☆ Amazon gets irrationally swept up in tech angst
▼ + stars: | 2022-10-27 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +4 min

Revenue for the business that delivers goods in the mail jumped to $107 billion, a 13% increase from a year earlier. Amazon said fourth-quarter operating income could be as low as zero along with net sales projections that fell below what analysts were expecting, according to estimates gathered by Refinitiv. Unlike Meta, Amazon is a victim of wider trends, including angst over the technology sector. Amazon Web Services, the data storage business, increased sales 28% from a year earlier to $20.5 billion, also short of Wall Street’s expectations. For the fourth quarter, Amazon said it expects net sales to be between $140 billion and $148 billion, up 2% to 8% from the fourth quarter in 2021.

☆ Amazon predicts profit slump during holidays, crushing shares
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +3 min

Amazon's net sales were $127.1 billion in the third quarter ended Sept. 30, little lower than analysts' expectations of $127.46 billion, according to IBES data from Refinitiv. And for the holiday quarter, the world's biggest online retailer forecast net sales of between $140 billion and $148 billion. It increased third-quarter cloud sales 28% to $20.5 billion, while analysts had expected more than $21.1 billion. In the retail sector, U.S. online sales are expected to rise at their slowest pace in years this holiday season. Amazon's net income decreased to $2.9 billion in the third quarter, ahead of analysts' average estimate of a $2.2 billion profit, according to IBES data from Refinitiv.

Oct 27 (Reuters) - Amazon.com Inc (AMZN.O) on Thursday forecast a slowdown in sales growth for the holiday season, disappointing Wall Street and warning that inflation-wary consumers and businesses had less money to spend. In a call with reporters, Amazon Chief Financial Officer Brian Olsavsky said the company was bracing for slower economic growth. Amazon forecast net sales of between $140 billion and $148 billion, or growth as little as 2% from a year earlier. The Amazon logo is seen at the company's logistics centre in Boves, France, October 6, 2021 REUTERS/Pascal Rossignol/File PhotoPrior holiday quarter sales growth was 9% in 2021 and 38% in 2020. Amazon's cloud sales growth has ticked down consistently in the past year.

☆ We're disappointed by Amazon's terrible results, stock plunge; but sticking with it for now
▼ + stars: | 2022-10-27 | by ( Jeff Marks | ) www.cnbc.com time to read: +9 min

Considering all the cross currents and a terrible initial stock reaction, we're going to sit tight on the stock for now. Segment Q3 sales Online Stores: $53.49 billion, up 13% year over year excluding-FX, missed the $54.27 billion expected. Physical Stores, mostly Whole Foods: $4.69 billion, up 10% from last year ex-FX, in line with the $4.71 billion expected. AWS: $20.54 billion, up 28% year over year excluding-FX, and a miss versus the $21.2 billion expected. Advertising Services: $9.55 billion, up 30% year over year excluding-FX, and a slight beat versus the $9.481 billion expected.

☆ Amazon set to report third-quarter earnings after the bell
▼ + stars: | 2022-10-27 | by ( Annie Palmer | ) www.cnbc.com time to read: +3 min

Andy Jassy, CEO of Amazon and then CEO of web services at Amazon.com Inc., speaks during the Amazon Web Services (AWS) Summit in San Francisco, California, U.S., on Wednesday, April 19, 2017. Amazon reports third-quarter earnings after the bell on Thursday. Those challenges have coincided with a slowdown in Amazon's core retail business, as consumers returned to shopping in stores. The forecast could signal how much demand Amazon expects to see during the holiday shopping period. Amazon shares have slid 31% so far this year, while the S&P 500 index has dropped nearly 20% over the same period.

☆ Amazon's cloud business just recorded its weakest growth to date and missed analysts' estimates
▼ + stars: | 2022-10-27 | by ( Jordan Novet | ) www.cnbc.com time to read: +2 min

Amazon said Thursday that revenue growth in its cloud-computing unit slowed in the third quarter to 27.5%, missing analysts' estimates. Revenue at AWS came in at $20.5 billion, according to a statement, while analysts polled by StreetAccount had expected $21.1 billion. Revenue grew 33% in the second quarter. AWS operating margin contracted to 26.3% from 29% in the second quarter. In some parts of AWS, Amazon has met its hiring needs, while in others it has thousands of job openings, an AWS spokesperson told CNBC earlier this week.

☆ A top AWS exec shares advice on what you should do when the company you want to work for is in a hiring freeze
▼ + stars: | 2022-10-26 | by ( Rebecca Knight | ) www.businessinsider.com time to read: +5 min

But they shouldn't sit idly, Nancy Wang, a top AWS exec and the founder of a nonprofit, says. Nancy Wang of AWS is the founder of Advancing Women in Tech. This is especially critical for women and members of marginalized groups who are underrepresented in technology, Wang said. So in 2017, she founded Advancing Women in Tech, a nonprofit dedicated to helping women and minorities rise in technology roles. Learn skillsIt helps to think of yourself as a product when you're looking for a job, Wang said.

☆ Oracle is shunning job seekers in high-paying tech hubs like San Francisco, Seattle, and New York to cut costs: 'They're OK passing on the top candidates'
▼ + stars: | 2022-10-25 | by ( Ellen Thomas | Jessica Xing | ) www.businessinsider.com time to read: +9 min

Oracle hiring managers and recruiters have been told to fill roles in cheaper US cities or abroad. Filling roles in areas where talent is cheaper, especially outside the US, has long been a cost-saving strategy for Oracle hiring managers, current and former employees said. "That sounds crazy to me," said Oracle executive Ken Glueck in response to a description of the claims made by Oracle employees in this story. Glueck did not directly answer whether the company was prioritizing hiring candidates outside of tech hubs like the San Francisco Bay Area, Seattle, and New York. Cities like Philadelphia, Dallas Fort-Worth, and Denver saw the highest growth rates for tech salaries this year.

☆ Crypto winter is hurting Google's ad empire
▼ + stars: | 2022-10-25 | by ( Ari Levy | ) www.cnbc.com time to read: +2 min

A cryptocurrency price crash and the onset of a new so-called "crypto winter" has left many companies in the industry facing a liquidity crisis. Google's overall ad growth of 6% in the quarter was the weakest for any period since 2013, other than one quarter at the beginning of the pandemic. CEO Sundar Pichai said the "challenging macro climate" is having an impact on Google's ad business. Schindler referenced the crypto pullback twice, but he didn't provide any additional color or specifics. Additionally, Coinbase will move data-related applications to Google's cloud infrastructure from Amazon Web Services, which the company has relied on for years.

☆ Stocks making the biggest moves after hours: Qualtrics, W.R. Berkley, Discover Financial and more
▼ + stars: | 2022-10-24 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

Cadence Design Systems - Shares of the software firm rose 1.6% after raising its full-year earnings per share guidance and posting a top and bottom line beat for the recent quarter. Cadence Design Systems posted earnings of $1.06 a share, beating an estimate of 96 cents, according to StreetAccount. Qualtrics — Qualtrics' stock surged 9.9% after the company beat analysts' expectations on the top and bottom lines for the recent quarter and raised its guidance. Packaging Corp of America — Shares slipped 2.7% in extended trading after revenue for the recent quarter failed to meet Wall Street's estimates. W.R. Berkley Corp — The insurance company's stock shed 5% after it reported a decline in net income and earnings per share year over year.

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