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☆ Disney's Iger may have to add slowing growth to his turnaround checklist
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +3 min

Disney is also embroiled in a legal fight with Florida Governor Ron DeSantis over state efforts to control Disney World. The media and entertainment giant's Disney+ streaming service is expected to add a net 1.3 million subscribers in the second quarter, compared with additions of 7.9 million a year ago, according to Visible Alpha. "Star Wars" spin-off "The Mandalorian" was Disney+'s most in-demand series both in the U.S. and worldwide during the quarter, according to data provider Parrot Analytics. The streaming unit's operating loss is expected to widen to about $750 million from a loss of nearly $670 million a year earlier. That would mark the slowest growth since the second quarter of 2021, as the company's cable business also takes a hit from an ad market slowdown.

☆ Lyft rattles Wall Street as margins suffer in race with Uber
▼ + stars: | 2023-05-05 | by ( Aditya Soni | ) www.reuters.com time to read: +2 min

May 5 (Reuters) - Lyft Inc shares (LYFT.O) tumbled nearly 20% on Friday as the ride-hailing company's strategy to claw back market share from rival Uber (UBER.N) with lower fares stoked concerns about a hit to its profit margins. At least 16 analysts slashed their price targets on a stock that has widely underperformed the market this year. The company's market capitalization was set to decline by nearly $800 million to about $3.3 billion, a far cry from the over $24 billion valuation it commanded in its 2019 stock market listing. "This looks like an Everest-like uphill battle ahead for Lyft in our opinion," said Dan Ives of Wedbush Securities. Lyft shares underperform Uber'sReporting by Aditya Soni; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

May 5 (Reuters) - U.S. electric-vehicle startups are expected to report another quarter of dwindling cash reserves next week, piling pressure on a group of companies that are struggling to ramp up production and have few options for funding in a turbulent economy. Lucid Group (LCID.O) kicks off first-quarter earnings for the group on Monday, with the company expected to report a 36% sequential slide in cash reserves, according to Visible Alpha. Rivian Automotive (RIVN.O), meanwhile, will likely report on Tuesday that its cash balance fell by 6.8% to $10.78 billion from the preceding quarter, per a Visible Alpha estimate. Fisker Inc (FSR.N) and Nikola (NKLA.O), both of which report earnings on Tuesday, are expected to see their cash reserves decline by 5% and 15%, respectively, according to Visible Alpha. Its earnings in an unscheduled release on Thursday showed Lordstown's cash balance fell 11% sequentially.

☆ Qualcomm amplifies chip gloom with 'sobering report'
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

May 4 (Reuters) - Qualcomm Inc's (QCOM.O) shares sank nearly 8% premarket on Thursday after the chip designer signalled it would take longer for its crucial smartphone market to rebound from a post-pandemic slump. Qualcomm's quarterly revenue outlook was the second time a chip firm has underwhelmed Wall Street this week. "While we believe investors were expecting a miss, this was admittedly a somewhat sobering report," said Bernstein analysts, among the 13 brokerages that cut price targets on Qualcomm's stock. Qualcomm did not name the modem customer, but analysts pointed to Apple, which will report results after markets close. Automotive revenue jumped 20% and the internet-of-things unit reported in line sales, indicating that Qualcomm's efforts to diversify away from the smartphone market were on track.

Hardware sales are set to decline over 7% to $71.93 billion in the second quarter, according to 23 analysts polled by Visible Alpha. Mac sales, which account for nearly a tenth of Apple's revenue, likely fell by a quarter, while revenue from flagship iPhone is estimated to have declined by over 3%. Davidson, who expects iPhone sales there to rise. That would mark its second lowest growth rate since at least the first quarter of fiscal 2017. He expects Apple to have added 30 million users to its active installed user base - the number of active Apple devices in the world.

☆ Edtech Chegg slumps on revenue warning as ChatGPT threatens growth
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +2 min

May 2 (Reuters) - What's the cost of students using ChatGPT for homework? For U.S. education services provider Chegg Inc (CHGG.N), it could be nearly $1 billion in market valuation. Chegg forecast current-quarter revenue below estimates and signaled that the usage of viral chatbot ChatGPT was pressuring customer growth, sending its shares 44% lower in premarket trading on Tuesday. We now believe it's having an impact on our new customer growth rate," said Chegg CEO Dan Rosensweig. "We fear Chegg could start to lose mind-share before CheggMate fully rolls out," Thill said.

☆ Intel climbs as Wall St cheers early signs of recovery
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +2 min

TD Cowen analysts said the company "was not out of the woods yet but this was a starting point." Intel's market capitalization is set to rise by nearly $8 billion to more than $130 billion, if premarket gains hold. "We see gross margin pressured for the foreseeable future reflecting aggressive process and new product spend as well as IFS (Intel Foundry Services) investment," Oppenheimer said. Intel posted its biggest quarterly loss in the first quarter as it ramped up production and investments in manufacturing plants. Reporting by Eva Mathews and Aditya Soni in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

☆ Amazon's cloud warning rattles investors
▼ + stars: | 2023-04-28 | by ( Aditya Soni | ) www.reuters.com time to read: +2 min

April 28 (Reuters) - Growth in Amazon.com Inc's (AMZN.O) lucrative cloud business is slowing and investors are worried. Shares fell 4% on Friday as Amazon's cloud business slowed in April after posting its weakest quarterly growth since the company began breaking out the unit's sales in 2015. The results are in contrast to those of Microsoft Corp's (MSFT.O) Azure cloud business, which grew at 27%. Still, analysts were largely upbeat about Amazon's cloud prospects, with about 17 raising their price targets on the stock, compared with the 10 that lowered their view. "Amazon is the clear market share leader in cloud computing and they will remain that way," Sundaram said.

☆ Facebook-parent Meta soars as AI powers return to growth
▼ + stars: | 2023-04-27 | by ( Aditya Soni | ) www.reuters.com time to read: +2 min

The company is set to add nearly $60 billion to its market valuation, if premarket gains hold. The rally also lifted other tech companies from Snap Inc (SNAP.N) and Pinterest Inc (PINS.N) to Amazon.com Inc (AMZN.O) by as much as 3.3%. "If you want to be treated and valued like a growth stock, you need growth! And this is precisely what Meta delivered returning to growth... just as questions around a potential recession get louder," Bernstein analyst Mark Shmulik said in a note. "Year of efficiency (now) paves the way to AI offense," Roth MKM's Rohit Kulkarni said.

☆ 'AI All-Star' Microsoft's rosy earnings spark rally in tech stocks
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

The Redmond, Washington-based tech giant was set to add nearly $160 billion to its market value and replace Saudi Aramco (2223.SE) as the world's second-most valuable company, if premarket gains hold. Microsoft's results bode well for an industry that has laid off tens of thousands of workers recently as demand fades in the face of a sagging economy. The Windows maker's earnings call on Wednesday underscored the growing importance of AI, with CEO Satya Nadella referring to 50 times in a 60-minute event. "Given the significant head start OpenAI has over other generative AI engines and Microsoft has over its hyperscaler (large-scale data center) competitors, we believe that Azure may gain share as generative AI continues to proliferate into many more corners of software and the economy," D A Davidson analyst Gil Luria said. Reporting by Nivedita Balu and Aditya Soni in Bengaluru; Editing by Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.

April 25 (Reuters) - Star host Tucker Carlson's abrupt exit from Fox News is likely to hit short-term ratings but could nudge more mainstream advertisers to consider a network they have snubbed for being too partisan, investors and analysts said. News of his departure on Monday wiped nearly $1 billion from the market valuation of the network's parent company, Rupert Murdoch-controlled Fox Corp (FOXA.O). "It's a huge deal," said Matthew Tuttle, head of Tuttle Capital Management, an investment firm that is betting against Fox shares. The conservative-leaning Carlson's prime-time show was the highest-rated cable news program in the key 25-to-54 age demographic on Fox News - the most-watched U.S. cable news network. It's likely that advertisers who were seeking that audience may have limited other options for conservative news viewership without skewing too conservative."

☆ Tesla raises 2023 spending forecast as it races to ramp up output
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +1 min

April 24 (Reuters) - Tesla Inc (TSLA.O) raised its capital expenditure forecast for 2023 on Monday as the automaker ramps up output at its factories to take advantage of the rising interest in electric vehicles. The company, led by Elon Musk, said in a filing that it expects to spend between $7 billion and $9 billion this year, higher than its previous outlook of $6 billion to $8 billion. It maintained the spending outlook for the next two years at $7 billion to $9 billion. Achieving that goal will make Tesla twice the size of any automaker in history, accounting for roughly 20% of the global vehicle market. The company is also ramping up output at its factories in Berlin and Austin, and plans to open a gigafactory in Mexico as the EV behemoth pushes to expand its global output.

At $517 billion, Tesla's market capitalization ended Thursday below Meta Platforms' (META.O) for the first time since 2021. Tesla's automotive gross margin, excluding regulatory credits and leasing, stood at 18.3%, missing an 'above 20%' target provided in January by Tesla CFO Zachary Kirkhorn. At least 15 analysts cut their Tesla price targets following Tesla's report, pulling the median target of 42 analysts from $210 down to $200, or about 23% above the stock's current level, according to Refinitiv data. Investors dumped automaker shares from Europe to the United States on fears that they too will sacrifice margins to maintain market share. Tesla remains up 32% year to date, far outperforming the S&P 500's (.SPX) 8% rise.

☆ Tesla shares sink as Musk signals more price cuts ahead
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

Tesla shares were trading at $168 before the bell, with at least 15 analysts lowering their price targets on the stock. "Facing a volatile macroeconomic backdrop and weakening demand, Tesla continues to prioritize units over near-term profits," said analysts at Canaccord Genuity. Musk suggested more cuts ahead, saying the company that has cut slashed prices six times so far this year will put sales growth ahead of profit in a weak economy. "Long-term we believe this (Tesla's price cuts) is the right strategy and leverages their cost leadership position. U.S. automakers ranging from Ford Motor Co (F.N) to startups such as Lucid Group Inc (LCID.O) fell between 0.7% and 2.8%.

☆ Apple bets big on India, but will still rely on China for 'years' to come
▼ + stars: | 2023-04-20 | by ( Charmaine Jacob | ) www.cnbc.com time to read: +1 min

Apple's first physical retail store is located in the populous city of Mumbai. Now, he's betting big on the South Asian giant as Apple shifts its focus away from China and expands its footprint in India. Still, analysts told CNBC the iPhone-maker's dependency on China will remain for years to come. "It will take Apple years to diversify away from China," Soni said. The iPhone maker had to scale back production in China due to those restrictions, a move that hurt its bottom line.

☆ Alphabet falls on report Samsung considering Bing as default search engine
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

April 17 (Reuters) - Alphabet Inc (GOOGL.O) shares fell over 4% in premarket trading on Monday after a report that South Korea's Samsung Electronics (005930.KS) was considering replacing Google with Microsoft-owned (MSFT.O) Bing as the default search engine on its devices. Google's reaction to the threat was "panic" as the company earns an estimated $3 billion in annual revenue from the Samsung contract, the report said, citing internal messages. Another $20 billion is tied to a similar Apple (AAPL.O) contract that will be up for renewal this year, the report added. Cordwell added the potential costs tied to making Google Search more competitive than AI-powered Bing could also be a cause of concern. The NYT report said Google was racing to build an all-new AI-powered search engine that would offer a more personalized experience than its current service, which is also set to be upgraded with AI features.

Reuters GraphicsTesla finance chief Zachary Kirkhorn promised in January that margins would not fall below 20% and an average selling price of $47,000 across models. Even as consumers have dialed down non-essential spending over fears of a possible recession, pressuring the EV market, Tesla's rivals such as Ford Motor Co (F.N) have stepped up competition at home. Meanwhile in China, Tesla's second-largest market, the company is playing catch up with BYD Co (002594.SZ). "It's probable that Tesla's margins will be preserved based on the reduction in commodity costs," said George Gianarikas, analyst at Canaccord Genuity. Tesla is targeting deliveries of 1.8 million vehicles this year, though Musk said in January the automaker could hand out 2 million vehicles if circumstances are favorable.

April 17 (Reuters) - Tesla Inc's (TSLA.O) first-quarter margins are anticipated to have hit a more than three-year low as the electric-vehicle maker slashed prices to lure more buyers in the face of rising competition and a weak economy. Reuters GraphicsFinance chief Zachary Kirkhorn promised in January that Tesla would not go below margins of 20% and an average selling price of $47,000 across models. The company on Friday slashed prices in Europe, Israel and Singapore. "It's probable that Tesla's margins will be preserved based on the reduction in commodity costs," said George Gianarikas, analyst at Canaccord Genuity. Tesla is targeting deliveries of 1.8 million vehicles this year, though Musk said in January the automaker could hand out 2 million vehicles if circumstances are favorable.

☆ Timeline: Canada gives final nod on C$20 bln Rogers-Shaw merger
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: 1 min

March 31 (Reuters) - Canada on Friday gave the final approval for Rogers Communications Inc's (RCIb.TO) C$20 billion ($15 billion) buyout of Shaw Communications Inc (SJRb.TO), clearing the deal that will create the country's No. 2 telecoms company. The green light came as Minister of Innovation, Science and Industry Francois-Philippe Champagne agreed to the transfer of wireless licenses held by Shaw's Freedom Mobile unit to Quebecor Inc (QBRb.TO) under some conditions. Here is the snapshot of key events in Rogers-Shaw merger:Reporting by Yuvraj Malik, Aditya Soni, Tiyashi Datta and Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Canada clears C$20 billion Rogers-Shaw deal with tough conditions
▼ + stars: | 2023-03-31 | by ( Aditya Soni | Chavi Mehta | ) www.reuters.com time to read: +3 min

The deal was opposed by consumer advocates and politicians on worries it could lead to higher prices due to an overlap between Rogers and Shaw’s wireless divisions. Rogers made 21 conditions, including setting up a western headquarters in Calgary, creating 3,000 new jobs in Western Canada and investing C$5.5 billion to expand 5G coverage and services. If it breaches the commitments, Rogers will have to pay a fine of as much as C$1 billion, Champagne said at a news conference in Ottawa. And it’s subject to arbitration.”Champagne said if wireless prices do not go lower, he would seek further legislative and regulatory powers. The combined company will benefit from Rogers’ strong presence in urban Ontario and Shaw’s dominance in the sparsely populated regions of Western Canada.

The deal was opposed by consumer advocates and politicians on worries it could lead to higher prices due to an overlap between Rogers and Shaw's wireless divisions. Rogers reaffirmed its conditions, including setting up a western headquarters in Calgary, creating 3,000 new jobs in Western Canada and investing C$6.5 billion to upgrade connectivity. If it breaches the commitments, Rogers (RCIb.TO) will have to pay a fine of as much as C$1 billion, Champagne said at a news conference in Ottawa. Champagne said if wireless prices do not go lower, he would seek further legislative and regulatory powers. Rosa Addario, a spokesperson for internet advocacy group OpenMedia, said the concessions sought by the government were unlikely to result in lower prices.

☆ Lyft shares jump as Wall Street welcomes CEO change
▼ + stars: | 2023-03-28 | by ( Aditya Soni | ) www.reuters.com time to read: +2 min

Lyft said on Monday co-founders Logan Green and John Zimmer would step down as CEO and president, respectively, handing the reins to David Risher who has been a board member since 2021. Risher was among the first employees at Amazon.com Inc(AMZN.O) and served as the e-commerce giant's first head of product. Risher's experience on Lyft's board also gives him a strong command of the business relative to the average incoming CEO, RBC Capital Markets said. Lyft's shares were trading at $10.20 on Tuesday. Rival Uber also had a CEO change in 2017, when it hired then Expedia Inc (EXPE.O) top boss Dara Khosrowshahi.

[1/2] Microsoft Corp's Bing search engine is seen on a computer in this illustration picture taken January 24, 2019. While Bing AI has been available to most users around the world since February, Google began the public release of its chatbot Bard only on Tuesday. "Bing has less than a tenth of Google's market share, so even if it converts 1% or 2% of users it will be materially beneficial to Bing and Microsoft," Luria said. App downloads for Bing have also jumped eight times globally after AI integration, according to app research firm Data.ai. Downloads for the Google search app fell 2% in the same period, the data showed.

☆ Factbox: Chipmakers' plans for factories in Europe, US and Asia
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

[1/3] The logo of semiconductor manufacturer Infineon is seen in Villach, Austria, June 3, 2018. The European Commission has earmarked 15 billion euros for public and private semiconductor projects by 2030, while U.S. President Joe Biden's administration passed the CHIPS Act last year to make over $52-billion worth of subsidies available for the American semiconductor industry. The Act deters companies using U.S. funds from undertaking any big expansions of overseas semiconductor manufacturing facilities in "countries of concern" such as China for 10 years, with some exceptions. India, Taiwan and South Korea have also offered incentives such as tax breaks to boost domestic chip production. Below are some of the chipmakers' plans for factories in Europe, North America and Asia:NORTH AMERICAEUROPEASIAReporting by Antonis Pothitos in Gdansk, Tiyashi Datta, Chavi Mehta and Aditya Soni in Bengaluru; editing by Josephine Mason, Mark Potter and Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ We need to continue to invest in 'pandemic preparedness,' says microbiologist
▼ + stars: | 2023-03-17 | by ( Tania Bryer | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe need to continue to invest in 'pandemic preparedness,' says microbiologistCNBC's Tania Bryer sits down with Anil Soni, CEO of the WHO Foundation, and Professor Peter Piot, microbiologist and co-discoverer of the Ebola virus, to discuss how the global health-care industry can be more equitable.

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