Apple device users will soon be able to tap into buy now, pay later loans from Affirm for purchases, the companies said Tuesday.
Affirm will surface as an option for U.S. Apple Pay users on iPhones and iPads later this year, the San Francisco-based fintech company said in a filing. Apple confirmed the news in its own update.
“This provides users with additional payment choices, and offers the ease, convenience and security of Apple Pay alongside the features users love in Affirm – flexibility, transparency and no late or hidden fees,” Affirm said in an email statement.
The move is a boost to Affirm and the buy now, pay later sector in general. When Apple introduced its own BNPL product last year, investors were concerned that the tech giant would crowd out stand-alone providers like Affirm. But the fact that Apple decided to also allow Affirm products in its ecosystem shows that the fintech company has something unique to offer.
For instance, while Apple’s BNPL loan lets users repay purchases in four installments over six weeks, Affirm has an array of longer-term offerings that can be repaid over a year or more. The companies didn’t provide details on the terms of the new loans.
“The bottom-line — in our view — is that Affirm’s strong brand and sophisticated underwriting technology have a moat that Apple likely could not replicate on its own,” Mizuho Securities analyst Dan Dolev said in a research note.
Apple also said that installment loans via credit and debit cards would be available on Apple Pay in the U.S. with Citigroup, Synchrony and Fiserv-related issuers. Traditional credit card players have begun offering BNPL-style installment loans after their popularity surged during the Covid pandemic
Synchrony said in an email that it was planning personalized installment loans with promotions based on the transaction size and merchant involved, with the possible use of promotional interest rates and loan durations.
“This announcement with Apple marks an opportunity for Synchrony to scale our flexible payment options and offer our merchants the ability to expand their presence in a growing mobile payments ecosystem,” Mike Bopp, Synchrony’s chief growth officer, said in an email.
Thanks to the ubiquity of the iPhone, Apple Pay has more than 500 million users around the world and a leading market share in the U.S. for its mobile payment and digital wallet platform.
Shares of Affirm rose 11% Tuesday, while Apple’s stock was up 7.3%.
Affirm’s stock rose despite the fact that the company indicated it would take time for the partnership to significantly boost its revenue.
“Affirm does not expect this partnership to have a material impact on revenue or gross merchandise volume in fiscal year 2025,” the company said in its filing.
At WWDC 2024, Apple unleashed a blitzkrieg of software updates to put AI, or “Apple Intelligence,” front and center in your iPhones, iPads, and Macs. After Samsung and Google pushed AI on phones, it’s now Apple’s turn to try and flip the script to make smartphones, tablets, and laptops “smarter” by introducing an AI of its own.
Apple Unveils Its iPhone 15 and Apple Watch Series 9
If you woke up this morning hoping for some big hardware announcement, or hell, even a hint or teaser for a new phone or Mac design, it’s best you return to your comfortable cave and hibernate until the next big Apple showcase. Regarding software, Apple Intelligence will be available in most user-end apps with automatic summarizations and AI-enhanced photo editing. ChatGPT is coming to the latest iPhones as the Cupertino, California tech giant is set to make the chatbot accessible anywhere on the phone without needing the app.
WWDC 2024 — June 10 | Apple
If you have no interest in AI, there are a few new updates to get excited about. iOS 18 and iPadOS 18 are incoming, promising some long-awaited features. One is the iPhone lock screen update, which allows users to place their widgets and icons where they want. Another is the update to Messenger that will finally enable it to use the RCS protocol. Say goodbye to those green bubbles forever.
Meanwhile, iPads and Macs are getting a few new, unexpected features, like a full-on Calculator app that supports scribbling and iPhone mirroring on macOS Sequoia. Many of these updates are slated for fall of this year, though the betas should start rolling out in the next few months.
What’s Up With ‘Apple Intelligence’
Apple Intelligence is Apple’s Big AI Product for All of its Ecosystem
Screenshot: Apple
First on the list is “Apple Intelligence.” The Cupertino company’s AI is just what it says on the tin: an entire ecosystem for navigating users’ lives. There’s a lot going into it, but—eventually—the software should be able to include multimodal AI vision capabilities and work within all the apps on your iPhone, iPad, and Mac. The only problem is that we still don’t know exactly when any or parts of these features should be available.
Apple Intelligence can Rewrite or Proofread Text
Apple promises the new AI writing tools can summarize your text and add an easy “TLDR” to the top of emails. Like Google’s Gemini, the rewriting feature could include different text styles to make it sound more “Friendly” or “Concise.” You also have the option to add tables, lists, or summaries to the text. This should work in pretty much all Apple apps and some third-party apps.
Apple’s Emails Will Summarize Important Points Before You Open them
The Priority feature in the Mail app will show you your most important emails or messages for when you have a lot of them coming in at once. These condensed notifications will show this right on the lock screen of your iPhone. This works with a new Focus that cuts down on the number of notifications and only shows the most important ones.
Apple Will Let You Create AI Images, Including ‘Genmojis’
Screenshot: Apple
Of course, Apple wouldn’t stay its hand from the AI image generation game. The new Image Playground is built into Pages, Messages, Freeform, and several other apps.
You have three styles on offer: animation, illustration, or sketch, but you have the regular prompt bar to make it create whatever (somewhat disturbing) images you desire. There are also new AI-generated emojis called ‘Genmoji,’ which will come out as a sticker or Tapback. You can also create one of your friends if you trust it enough. Apple promises all its images are generated on-device.
There’s also a new Magic Eraser-like tool in Photos to remove unwanted elements from an image before filling in those missing pixels.
The Apple Intelligence Can Pull Up Your Files and Photos
There’s a lot of big promises coming about thanks to AI. Apple claims their new AI system will eventually let the AI perform rather complex actions, like pulling up photos and files from any of your apps. It should be able to work between apps so that it will know when your meetings are and what your plans are for that day when you ask it to send a text that helps you work around your schedule.
Apple Promises Its AI Won’t Save Your Data
Some of the AI running on Apple’s devices are on-device, but those are supposed to run through Private Cloud Compute. Apple promises to maintain your privacy by determining if a request needs any off-device AI. Then, it will only send parts of the request to the cloud. Apple promises outside agencies will be able to look at Apple’s servers to verify the big privacy claims.
Siri Has a New Look and a Whole Lot More Capabilities
Screenshot: Apple
Poor, beleaguered Siri is finally receiving those long-rumored AI upgrades, but we may need to wait a long time to see them in action. The Siri updates will allow the assistant to interact with iPhone and iPad apps far more than it currently can.
For one, Siri now has a new logo and look, making the borders of the screen wavy whenever the assistant gets called up. Siri will maintain conversational context and will be able to work off your previous requests. Now you can type to chat to Siri as well. Double tapping on the bottom of the screen allows you to communicate with Siri directly.
Siri can also take actions happening on-screen. It can also take actions across apps, like adding a photo from the Photos app to the Notes app. Eventually, the idea is that Siri can take specific actions in more apps over time.
The digital assistant should also become more engrained with users’ “Personal Context.” Siri should know your emails, plans, calendar events, and texts to find all the necessary information.
Siri Will Be Your Best How-To Machine for Apple Products
Siri should be able to send you a how-to guide for anything related to your Apple products. This comes baked into Siri and will work with all the most commonly asked questions about Apple products.
Siri Can Use ChatGPT ‘Seamlessly’
Screenshot: Apple
While we don’t have a good idea when Siri will receive its most important updates, we know that the current stopgap will be ChatGPT integration directly on users’ devices. The app will be accessible straight from Siri and the new compose feature. You can use the chatbot to generate DALL-E images as well. Apple promises this integration will be powered by GPT-4o for free without paying for an account.
Apple promises your activities won’t be logged, and you can access the ChatGPT paid features if you link your account. ChatGPT integration will be coming to all the Apple ecosystem’s new updates later this year.
iOS 18 is Promising some Long-Awaited Customization Features
iOS Now Supports RCS
Screenshot: Apple
As a last-minute note to end its talk about iOS 18, Apple confirmed that the next version of iOS will support RCS protocol. There’s no word yet exactly what form this will take, though Android Authority first recognized that it could be RCS Universal Profile 2.4. This could be the true end to green bubble tyranny, but we’ll learn more as we get close to release.
iOS 18 Lets You Finally Rearrange Your Home Screen Apps
Screenshot: Apple
iOS 18 will be a big one for folks who have long demanded Android-like customizability on the iPhone. Now, you can rearrange all your apps and widgets on the home screen however you like, so you can finally frame your background wallpaper without having an app covering up your kids’ faces. Apple goes further by allowing users to set the tint and tone of the app’s icons themselves.
You Can Soon “Lock” Any App in iOS 18
The next iPhone update will allow users to lock and hide apps so anyone using your phone won’t have immediate access without biometric scanning or a PIN. Similarly, you can now hide away apps into a select hidden folder if you don’t want visitors to your iPhone to get into some of your more sensitive apps without a passcode.
Messenger Includes Full Emoji Tapbacks
Screenshot: Apple
Are you annoyed you can’t do full emoji reactions to texts like you can on Android? The iOS Talkback feature is receiving full emoji support, so you can respond to your friend’s queries with as many poop emojis as their messages require.
Messenger Text Effects Will Let You Emphasize Certain Words
The Messenger app in iOS 18 is expanding the ability to emphasize words. Now, instead of just emphasizing the names of people or other words, users can use Text Effects to make certain words blow up or jiggle. The app will automatically suggest specific effects for certain words. There are new effects, and you can add them to any text you want.
Messages are also gaining the ability to use text formatting, allowing you to underline, bold, or italicize words or phrases.
Game Mode on iPhone
Mac’s Game Mode is getting a version on iPhone. The mode should automatically kick in while in a game. This minimizes background tasks to put as much processing power into the game. It should improve latency with controllers or AirPods.
Messages Via Satellite
If you find yourself without cellphone service, Apple will let you use your iPhone to text friends and family when off the grid on Messages. You can still send emojis and Tapbacks, and Apple claims its E2E encrypted. This will only be available with the iPhone 14 or later, which comes with satellite support.
Apple Maps Now Allows You to Get Hiking Trail Info
Screenshot: Apple
Apple Maps now has access to topographic trail maps, allowing hiking loops on your phone. This will show the overall length and elevation gain of the trail or loop and the various entry points on the app.
Tap to Cash Allows You to Pay Your Friends With Your Phone
Those iPhone users keen on Apple Cash will soon be able to send money to each other using the same action you can use to send folks your contact information. Hovering both phones with the active cash app will send and receive money from your wallet. Additionally, event tickets are being redesigned to show you details about the venue and other essential information.
Photos App is Gonna Look a Hell of a Lot Different
The Photos app now has a new design that shows all your photos in a single grid. You can find different photos based on months or years and filter your photos to eschew screenshots.
The new Collections will let you section different photos into topics like People & Pets or Recent Days. This will let you see your photos in a collage. In selections like Trips, you can find your vacations or travels by date. You can also pin different collections.
The Favorites carousel now shows you a slideshow of photos from various favorite collections.
iPadOS 18 Promises Some New and Unique Features for Apple’s Tablets
Floating Tab Bar on iPad Might Make it Far Easier to Use
Screenshot: Apple
Apple is introducing a new floating tab bar for iPadOS 18. It essentially works as an easy-to-access menu that can morph into a sidebar for even more fine-tuned controls. It should work with most Apple apps on the iPad. There are also new animations to accompany this update. Apple added it’s working to make browsing through documents easier on Apple’s tablets.
SharePlay Tap and Draw Will Let You Remote Control Another iPad
The new SharePlay update will let you make annotations on a foreign device and act as a remote control for another person’s iPad. So, if you’re trying to describe to your mom how to access her iPad photos, you can use SharePlay and draw an arrow straight to them. Once you get frustrated enough, you can take control.
Calculator on iPad (‘Yay’)
Screenshot: Apple
Finally, the iPad is getting a calculator app, but it’s far more interesting than that. It may look like It also works with Apple Pencil. Math Notes comes up from the calculator button, and if you write out an equal sign, it solves it for you, updating it live depending on your different functions. It also works with lists that let you tabulate numbers rather quickly. Notes also have the same math capabilities as Calculator.
Notes’ Smart Script Will Fix Your Chicken Scratch as You Write
The AI will make your writing more legible as you go. The on-board AI should be able to take your loose handwriting and make it a bit more legible while keeping your writing “style.” You can paste it directly into the Notes app, which should mimic your handwriting style.
So, What’s New in macOS Sequoia?
macOS Sequoia Will Allow You to Mirror Your iPhone on Your MacBook
Screenshot: Apple
macOS Sequoia is getting a lot of the features you can find on Apple’s other products. Continuity will let you access universal apps on the rest of the Apple ecosystem. More importantly, it will let you mirror your iPhone on a Mac. Users can then select and work on any of the iPhone’s apps. The audio also comes through Mac.
The iPhone stays locked while you mirror it and works with Standby mode. When your phone is connected to the laptop, iPhone notifications will also appear on Mac, and when you click on them, your iPhone mirror will open up.
You Can Place Your Mac Windows into Tiles, Like Windows 11
Screenshot: Apple
macOS Sequoia is adding a few new tiling features to make organizing your desktop more seamless. Bringing a window to a corner of the screen should automatically reorient and morph to fit a clean style.
You Can Preview Your Camera When Doing a Facetime
Before hopping into a video meeting, Macs will let you preview what you look like on camera. It is better to help you fix your makeup or remember to put on a shirt. There’s also a built-in background replacer if you can’t access one in whatever app you use.
Passwords App Will Show All Your Stuff
There’s now an all-new Passwords app to act as your one-stop shop for your keychains and important, sensitive information. It should be present across the entire Apple ecosystem. This should contain everything from WiFi passwords to verification codes to Passkeys.
Safari Reader Function Summarizes Text
Screenshot: Apple
The new updates to Safari introduce several new AI functions. At the top of the list are AI-generated summaries for the content on web pages. The Reader mode changes the website’s look and brings up a table of contents. There’s no look whether it also removes ads while it’s at it.
Game Porting Toolkit 2 Adds Better Windows Compatibility
Apple first announced its Game Porting Toolkit last WWDC, and now there’s a sequel that promises to make porting more hardcore titles easier to Apple’s framework. The company detailed several new games coming to Mac, including Frostpunk 2 and Control. Assassins Creed: Shadows is also coming to iPad, and Prince of Persia: Shattered Crown is coming to Mac.
How About watchOS 11 and AirPods?
AirPods Can Sense Your Head Nods For Saying Yes to Siri
Screenshot: Apple
If you’d rather not be that asshole in the elevator talking on your Bluetooth headset, AirPods will soon get a feature that should track your head movements. If there’s an incoming call, you can nod or shake your head to respond yes or no to taking it. After it rolls out to AirPods, we’ll have to see what other uses this gesture has.
Apple Watch’s watchOS 11 Gets Training Mode
There are a few new features on the Apple Watch for those fitness fans. With Training Mode, an AI algorithm tells you what kind of effort you made during your recent exercise. This might tell you if you were going too soft or too hard on your recent workout. Plus, you can customize your Fitness app to see what kind of data you want to see at a glance.
The Next watchOS Update Includes a Vitals App
Screenshot: Apple
The Vitals app will look at your entire health data to check all your health metrics and even tell you whether your drinking has impacted your health. This might show your heart rate and tell you whether that’s in your typical range. If it’s not within normal levels, the app should give you a rundown of what’s happening and what could be causing the issue.
Apple Watch Will Open Up Different Widgets Depending on Context
Apple’s smart stacks will automatically add weather or translation widgets to your main screen if it thinks you need them. This might come up when it looks like it’s about to rain or if you’re traveling around a foreign country.
The Apple Watch Will Determine Which Photos Work Best for Your Home Screen
Screenshot: Apple
Like its new TV update, Apple Watches will look through your photos and select those with enough blank space to fit the time. It should also be able to stick the time in front or behind certain photo elements, making it look far more like the photo belongs on the home screen.
If you’d rather not be that asshole in the elevator talking on your Bluetooth headset, AirPods will soon get a feature that should track your head movements. If there’s an incoming call, you can nod or shake your head to respond yes or no to taking it. After it rolls out to AirPods, we’ll have to see what other uses this gesture has.
AirPods Pro Now Have Voice Isolation and Spatial Audio in Gaming
AirPods Pro is getting an update that will add voice isolation to remove background noise for the sake of whoever’s on the other end. Additionally, developers can access an API to add spatial audio for games. This will add a surround-sound type experience to the game, first coming to Need for Speed Mobile.
Is There Anything New Coming to Apple TV+ and Vision Pro?
AppleVision OS 2, the Squeekquel, Will Let You Project Your Mac Screen Into nearly 180 Degrees
Screenshot: Apple
Apple released Vision Pro in February, and its first major update of the year is a sequel to the first visionOS coming down the pike just a few months later.
The big new update includes several new spatial photo updates. The Vision Pro can turn 2D images into 3D-ish Spatial photos. You can share those spatial photos with SharePlay. Apple is adding a few new gestures to tap to open the home view or open the control center by turning your wrist. Later this year, Apple plans to update the OS to add better Mac screen integration. This will expand the total view of your projected Mac screen, and with dynamic foveation, it can create a wraparound screen that travels nearly 180 degrees.
InSight on Apple tvOS Will Offer a Few Details on What You’re Watching
Apple’s new InSight feature on Apple TV+ is essentially Amazon’s X-Ray. It lets you get a quick summary of the content you’re watching, plus information about the actors on screen and perhaps a little trivia about the scene as it plays. Plus, there are a few new screensaver animations, like one from Peanuts’ Snoopy, but your photos will now reframed to fit with a timestamp and look like they belong on-screen.
Traders work on the floor of the New York Stock Exchange during morning trading in New York City.
Michael M. Santiago | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Nvidia passes Apple Artificial intelligence chipmaker Nvidiasurpassed the $3 trillion market capitalization mark, pushing past Apple to become the second most valuable company behind Microsoft. Nvidia’s shares have risen 24% since its blockbuster earnings report in May, while Apple’s shares are up only 5% this year as sales growth stalled in recent months.
Baron backs Musk’s pay deal Billionaire investor Ron Baron has publicly defended Elon Musk’s controversial $56 billion Tesla pay package. The Baron Capital chairman and CEO argues the package, tied to “aggressive” performance targets, is justified as without Musk “there would be no Tesla.” Baron previously revealed that his firm has made about 20 times its investment in Tesla since he first bought the stock in 2014. The package, previously voided by a Delaware judge, will face a shareholder vote on June 13.
Elliott retakes SoftBank stake Elliott Management, an activist investor, has taken a $2 billion stake in SoftBank and is pushing for a $15 billion share buyback. This marks the second time Elliott has taken a stake in the Masayoshi Son-led firm. In 2020, at Elliott’s urging, SoftBank launched a $20 billion share buyback and asset disposal program. Elliott believes another buyback would boost SoftBank’s share price and signal confidence in CEO Son’s plans, particularly in AI.
Electric air taxi gets FAA signoff Shares of Archer Aviation soared 6% after the Federal Aviation Administration granted the electric air taxi maker a key certification that would allow the company’s aircraft to eventually carry passengers. Archer, which has won orders and backing from United Airlines, is building electric vertical takeoff and landing aircraft for urban areas, which could reduce carbon emissions. Archer has partnered with automaker Stellantis to produce hundreds of the electric air taxis.
[PRO] Buy the dip While investors are concerned about this biotech company’s potential loss of exclusivity and rising competition, Goldman Sachs sees an upside of more than 60%. The Wall Street bank believes investors should buy the dip and consider its “overlooked” pipeline.
Billionaire investor Ron Baron's support of Elon Musk's $56 billion compensation package almost feels like looking in the rearview mirror. Nonetheless, it's a crucial intervention just ahead of next week's vote on what would be corporate America's biggest compensation package.
Shareholder advisory firms, Glass Lewis and ISS, have told investors to reject the award. In voiding the original package, the judge said the process was flawed because of the close relationship the compensation committee had with Musk. For example, Robyn Denholm, the chair of Tesla, sold some of her Tesla options for $280 million between 2021 and 2022 — a "life-changing" transaction, as she described it. Other members of the team had relationships with Musk going back 15 years or more and regularly vacationed together.
The package has no salary or cash bonus and sets rewards based on Tesla's market value rising to as much as $650 billion over the 10 years from 2018. The court also found the defendants did not prove the package was necessary to retain Musk.
At its height, Tesla reached a market capitalization of $1.2 trillion in November 2021. Since then, the EV market has slowed and competition has intensified. Its current market cap is $560 billion. While Baron remains bullish and has made and expects to make a lot more money from Tesla, other investors expect the company's stock to fall by as much as 30%.
Who would bet against Musk? He took a niche vehicle manufacturer that has flirted with bankruptcy and challenged Detroit, and now plans to reinvent the EV maker into a leader in AI and robotics.
Still, Wall Street has a new favorite in Nvidia. It passed the $3 trillion mark and surpassed Apple to become the second most valuable U.S. company. Before Thursday's record high, UBS noted that Nvidia's year-to-date gain is responsible for a significant chunk of the S&P 500's 2024 rally.
"NVDA accounts for 30% of the market's return YTD," wrote strategist Jonathan Golub in a Wednesday note to clients. "S&P 500 returns drop from 11.3% to 7.8% ex-NVDA. Many stocks have moved in step with the AI theme."
While some caution a bit of profit-taking, the company's 10-for-1 stock split should encourage side-lined retail investors to take a slice of the AI frenzy. Bank of America still sees an upside to the stock.
— CNBC's Brian Evans, Alex Harring, Darla Mercado, Kif Leswing, Rohan Goswami, Leslie Josephs and Yun Li contributed to this report.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market pressure : The major stock benchmarks were moving lower Wednesday, with the Dow getting the worst of it again. Adding pressure on equities, bond yields moved higher following a poor auction of $44 billion worth of 7-year Treasury notes. Nvidia was bucking the overall market decline, but its modest gain was much cooler than the incredible march higher over the past three sessions after last week’s earnings. American Airlines shares sank roughly 15% after a company sales strategy backfired and the carrier cut growth guidance. Sector watch : All of the S & P 500 sectors were under pressure Wednesday, led by energy and utilities. Tech has been flirting with positive territory as Nvidia, which opened lower, reversed to the upside. Fellow Club names Apple and Microsoft were also in the green. Combined, the three account for nearly 49% of the tech sector index. Apple and Nvidia, our two “own, don’t trade” stocks were also the top performers among the entire 33 stock Club portfolio. Deal movers : ConocoPhillips has agreed to buy Marathon Oil in a $17 billion all-stock transaction. Marathon shares rose about 7.5%, while Conoco stock fell roughly 4%. Additionally, Hess shareholders approved the company’s pending merger with Chevron . And, Merck has reached a deal to acquire privately held Eyebiotech for $1.3 billion in cash. Banking news : Here’s a dispatch from our Investing Club reporter Morgan Chittum about what Wells Fargo CEO Charlie Scharf said Wednesday at Bernstein’s 40th annual Strategic Decisions Conference: Scharf said Wells Fargo has been focusing on investment banking in a “very, very targeted way.” There were several mentions of the bank’s quiet hiring spree to beef up its Corporate and Investment Banking (CIB) division, which we reported on last week . Building out lucrative underwriting and advisory fee capabilities is “staring us in the face,” he added, as long-dormant IPO and M & A activity have started to perk up. Expanding Wells Fargo’s Wealth Management franchise, another fee-based revenue stream is “one of the bigger opportunities” ahead, Scharf said. The bank has around 12,000 advisors and is better positioned than in years past, the CEO added. We have been encouraged by Wells Fargo’s push to boost fees business lines. Scharf said Wells Fargo remains focused on efficiency. The bank has cut staff to 225,000 from 275,000. “The conversation around efficiency is less [about] saving money and it’s more about how do we run a better company,” he added. When the Federal Reserve at some point removes its asset cap on Wells Fargo, Scharf said corporate lending and trading will be areas of growth for the bank. He said he dialed back those areas to stay under the Fed’s $1.95 trillion limit. “When you turn a consumer away, they’ll remember that forever,” Scharf said. Businesses understand and can be won back, he added. The CEO believes it’s just a matter of time before the asset cap is lifted and so do we. Scharf said Wells Fargo was able to get a key regulatory penalty removed back in February by stripping away things like certain incentive plans at branches. The so-called consent order was tied to the bank’s 2016 fake accounts scandal that predated Scharf. There are still several other orders outstanding. Quick hits : The FDA granted accelerated approval for Club name Eli Lilly ‘s Retevmo, which is used to treat certain kinds of advanced or metastatic medullary thyroid cancer in children two and older. Twelve years and older was the prior age threshold. Elsewhere, shares of HubSpot were bucking the broader market decline on further speculation that Club name Alphabet is indeed considering an acquisition. CNBC’s David Faber believes that should a deal occur, it would be all-stock. Up next : Salesforce is set to report earnings after Wednesday’s closing bell. AI monetization commentary and what the team has been seeing in terms of cross-selling opportunities will be key watch items. Foot Locker and Best Buy report before the bell Thursday. Costco is out with results Thursday evening. That will do it for Club name earnings, except for Broadcom, which is set to report next month. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
Entrepreneur Grant Cardone said collecting and displaying art gives him more fulfilment than investing.
Grant Cardone
Multimillionaire Grant Cardone, who has been collecting art for around 15 years, says he’s a spontaneous buyer.
“I don’t consider myself a connoisseur. I’m very new to the art world. If I like it, I buy it. I don’t care who did it,” he told CNBC. Alongside pieces displayed throughout his home, Cardone also has an art gallery to house his considerable collection.
CNBC spoke to Cardone by video call — behind him in his Miami home office was an untitled piece by American graffiti artist Retna that Cardone bought in an online auction.
“I clicked the button — really hadn’t done any research … and got the piece … And it got here and I absolutely freaking loved it,” he said. He paid “maybe $140,000” for the work, he said.
A piece called “It’s Now Time,” by the artist Fringe, seen in Grant Cardone’s home gallery.
Grant Cardone
Along a corridor in Cardone’s home are two pieces by American pop artist Burton Morris, both depicting red Coca-Cola bottles lined up in a repeating pattern named Coca-Cola 50A and Coca-Cola 50B. “This I bought from Tommy Hilfiger … it reminds me of the importance of scaling,” Cardone said — fashion designer Hilfiger is the home’s previous owner.
Cardone, a real estate investor and author of “The 10 X Rule: The Only Difference Between Success and Failure,” has around 17 million followers on social media and uses his platforms to give occasional advice on art investing.
“[Followers are] starting to see the art saying, hey, you know, [has] that been good for you? And I’m like, yeah, it’s good for me … It’s better than the dollar or the euro … The stock market doesn’t give me any fulfillment, I don’t go back and look at my Apple shares and feel good about it. But I walk in my gallery or down the kitchen or in my office and I see a piece and I’m like, man, it’s super cool.”
The gallery in Grant Cardone’s Miami home. A print of a piece by Basquiat is seen bottom left.
Grant Cardone
Inside Cardone’s gallery — complete with floor-to-ceiling windows and a security guard — is a work by American contemporary artist Kenny Scharf titled “Blipsibshabshok” (1997), an abstract painting featuring colorful futuristic symbols. Cardone owns a second Scharf, “Controlopuss” (2018), a striking image of a red multi-legged creature, acquiring it for $279,400 from auction house Phillips.
“This is a Basquiat right here. The original would be $45 million,” Cardone said, pointing to a print of a Jean-Michel Basquiat piece titled “Flexible” (1984/2016). The original was sold by auction house Phillips for $45.3 million in 2018. “This piece I bought with the house,” he said, gesturing to a work above the Basquiat titled “Read More” by American contemporary artist Al-Baseer Holly.
Grant said he chooses pieces to buy on instinct. “I’ll try to walk away from it. And if I keep seeing it, or I keep thinking about it, then I go back and say, OK, I’m supposed to have this,” he said.
“I plan on never selling any this stuff. It’s really for my personal enjoyment. And you know, art makes me happy,” he said.
Former investment banker Christian Levett has a different approach. He’s been collecting art for almost 30 years, starting with old master paintings and Roman, Greek and Egyptian antiquities before moving on to pieces by female abstract expressionists.
Art collector Christian Levett conducts private tours of his home in Florence, Italy. His collection is largely made up of abstract expressionist works by female artists.
Christian Levett
Aside from owning an art museum in Mougins, France, Levett conducts tours of the artwork on the walls of his home in Florence, Italy, where he lives for six months of the year — you could say his whole home is an art gallery. “It’s, kind of, a museum by private tour,” Levett told CNBC by phone.
Close to the city’s famous Ponte Vecchio bridge, Levett’s home has 20-foot-high ceilings, original frescoes and two floors of art, all by women. The collection is largely made up of abstract expressionist works by artists such as the impressionist Mary Cassatt and the surrealist Dorothea Tanning.
Once or twice a week, Levett invites small groups to see his collection, often taking tours himself. Groups are sometimes made up of students from the American colleges that have outposts in Florence, such as Harvard University and New York University, or come from museum or patrons’ groups.
A 1977 painting by American artist Joan Mitchell is a highlight of Levett’s collection, he said. The large piece, titled “When They Were Gone,” is nearly 240cm tall and 180cm wide, and hangs in his dining room.
Levett acquired it for about $2.8 million around 2015.
Christian Levett has switched from collecting antiquities to work by female artists, seen here in his Florence home.
Christian Levett
“It’s now probably a $15 million to $18 million picture at auction … Mitchell has always been one of the most important female painters of the 20th century,” Levett said.
He also spoke highly of an Elaine de Kooning oil painting of John F. Kennedy, commissioned as part of a series of portraits of the former U.S. president in 1963. Levett bought the artwork in 2020, paying around $600,000.
Levett said he opens his home to students in part because doing so might spark an interest in supporting art in future. “The students … are the acorns of the art world,” he said.
Work by female artists is Levett’s focus, and he is set to re-open his museum in France as the Female Artists Mougin Museum on June 21. He is currently selling the museum’s previous collection of art and antiquities via a series of sales at London auction house Christie’s, which have reached almost £9.5 million ($11.9 million) so far.
Christian and Karen Boros’ home is on top the bunker that houses their private art collection, the Boros Collection, in the center of Berlin, Germany.
John Macdougall | AFP | Getty Images
At a unique art space in Berlin, husband and wife Christian and Karen Boros live in a 6,000 square foot penthouse apartment above their private collection. The Boros Collection is housed in a former World War II bunker, a vast, high-rise building the couple acquired in 2003 and spent several years converting into a five-floor exhibition space, with their home on the sixth.
The bunker sheltered up to 4,000 people during the war, after which it was used as a storage facility for tropical fruit before becoming a nightclub. According to Raoul Zoellner, director of the Boros Foundation, 450 tons of concrete ceilings and walls were removed during its conversion into an exhibition space and home.
An artwork by Cyprien titled “Gaillard Lesser Koa Moorhen,” 2013, part of the Boros Collection.
Boros Collection, Berlin | Noshe
Christian, an advertising entrepreneur, bought his first artwork — a spade by German artist Joseph Beuys — when he was 18, he told the Financial Times.
“The bunker is not a museum … but an exceptional project initiated by an enthusiastic collector couple who could not have imagined how many diamond saws it would take to tear down dozens of bunker walls — or what that would set in motion,” Zoellner said in an emailed statement.
Karen and Christian Boros live in a penthouse apartment above their art collection in Berlin.
Max von Gumpenberg
Nearly 600,000 people have taken guided tours of the bunker since its conversion in 2008, with pieces from the Boros Collection shown on rotation, Zoellner added. At the moment, there are 114 works on view, with a “focus on the human body in a multiplicity of positions,” Zoellner said. “The works home in on the constant compulsion to optimize, the gradual adaptation of our bodies to technological devices,” he said.
As a teen, Chet Kapoor dreamed of working for tech mogul Steve Jobs.
One day, that dream became a reality when Kapoor was hired as an intern at software company NeXT, founded by Jobs.
“Steve was this iconic individual and I didn’t know him … I was the guy that got coffee for the guy that made coffee,” Kapoor — who is now CEO of generative AI company DataStax — told CNBC Make It.
“I was one step below the person that opened doors but that didn’t matter because I worked 20 yards away from him [Jobs] every day.”
Kapoor made his mark in Silicon Valley as CEO of cloud software company Apigee, which was acquired by Google in a $625 million deal in 2016. He has also held leadership positions at firms including Google and IBM.
However, he credits a lot of his success to his experience working as Jobs’ intern in the early days.
Kapoor explained that he would focus on the questions that Jobs would ask in all-hand meetings more than anything else because it gave an insight into his thought process.
“That exposure was absolutely phenomenal,” he said. “I can attribute a large portion of my success to my first two or three years at NeXT.”
Kapoor, 57, was born in Kolkata, India, and recalled his mother taking him to the British Council library so he could read books while she went shopping.
“In 1983, I read this book called ‘A Little Kingdom’ and it was written by a guy by the name of Michael Moritz,” Kapoor said. “This book was about two Steves: Steve Jobs and Steve Wozniak. It was all about Apple. I was impressionable because I was 15 or 16.”
“I was like ‘this is who I want to go and work for’ and it was very clear to me that I wanted to come and hang out and work with Steve Jobs,” he added.
CUPERTINO, CA – APRIL 08: Apple CEO Steve Jobs points during a Q & A session during an Apple special event April 8, 2010 in Cupertino, California. Jobs announced the new iPhone OS4 software. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan | Getty
Inspired by the book, Kapoor took computer classes and started applying to colleges in the United States. He eventually landed at Arizona State University in 1986.
During that time, Jobs left Apple and founded a new software company called NeXT in 1985. That’s when the opportunity arose for Kapoor to fulfill his dream.
NeXT started a program called the Campus Consultants and started hiring students to work for them part-time from their colleges — and Kapoor became one of them in 1988.
The company asked Kapoor and a select few students to join the company as interns after they graduated, where they rotated through various odd jobs.
“I started working for NeXT five years after I imagined that I would be working for Steve,” Kapoor said.
Jobs created a very “product and design-centric” environment at NeXT, according to Kapoor.
“Everything starts with what is the user experience. How is the user going to interact with this? That made all the difference in the world and the maniacal focus on that was absolutely amazing,” Kapoor said.
This is reminiscent of Apple’s culture, with Jobs saying in a 1985 Newsweek interview that he enjoyed “making things.”
“What I’m best at doing is finding a group of talented people and making things with them,” Jobs said. “My philosophy is that everything starts with a great product.”
iPhone users just see a new pretty interface, but there’s a lot of “hardcore engineering” that happens behind the scenes, Kapoor explained.
“Everything starts with a very strong engineering culture,” he said. “He drove a very hard, regimented schedule because otherwise, you just leave it, and it becomes a science project. He was very driven in that regard.”
Apple’s new iPad Pro comes in two sizes, and starts at $999. It also has a new add-on case called Smart Keyboard that makes it feel like a laptop.
Apple‘s new iPad Pro and iPad Air models launch Wednesday. I’ve been testing the new iPad Pro for several days and what I found is that it’s a very nice iPad.
This is an important launch for Apple. Earlier this month, the company reported a 16% year-over-year drop in iPad revenue for its fiscal second quarter. Apple hasn’t rolled out a new iPad since October 2022.
The new iPad Pro is fast, with the latest M4 chip, and it has a new OLED display that’s more colorful than prior screens. It’s the thinnest product Apple has ever launched.
But, it still runs the same iPad software, and that’s starting to feel dated. The fully loaded out model I tested costs about $2,499. That’s before you add the $350 keyboard and $129 Apple Pencil Pro, which will help you get more out of the device.
It’s time Apple makes this more than just an iPad. The software, called iPadOS, needs to catch up to the hardware.
The new iPad Pro models can be seen at an Apple event. The new iPad Pro is the first Apple device with the M4 chip. The larger version with a 13-inch display is the thinnest Apple device to date with a thickness of 5.1 millimetres.
Christoph Dernbach | Picture Alliance | Getty Images
The new iPad Pros cost $200 more than the models they replaced. I tested the larger 13-inch iPad Pro, which starts at $1,299 before storage and 5G upgrades. The 11-inch model starts at $999.
The first thing I noticed when I picked it up was its thinness. It’s noticeable compared to the M1 iPad Pro I’ve used for the past several years. And it’s lighter. That’s especially nice on the 13-inch model, which replaces the 12.9-inch version. I always thought it felt too heavy and clunky to use as a tablet. It still feels big, but it’s more manageable.
The new OLED screen is another highlight. It’s clear and super colorful. It’s similar to the OLED screen Apple has used on its iPhones Pro for years but not on iPads. The screen adapts, getting brighter in dark movies or showing scenes with explosions. And professional video and photo editors will appreciate its color accuracy. I loved using it for movies and while playing Diablo Immortal. The game will look better once Activision Blizzard releases an update enabling improved graphics for the M4 iPad Pro. The four stereo speakers sound nice and loud but not tinny.
The camera is finally in the right place. It’s along the landscape edge of the iPad so that, when it’s propped up, it’s dead center for FaceTime calls. It used to be on the top of the iPad, forcing that awkward glance to the side during video calls. The quality was nice and clear during my tests and I like that the camera, using the Center Stage features, followed me as I moved around the room.
2024 13-inch Apple iPad Pro
Todd Haselton | CNBC
The iPad has the latest and greatest M4 chip, which hasn’t launched on Macs yet. I ran a GeekBench multicore benchmark test that shows it scoring 48% higher than the prior M2 iPad Pro. Apple promises up to 4x faster rendering over the M2 and 1.5x faster processor performance, which means video editing in Final Cut Pro for iPad and rendering things like 3D models is quicker for professionals who need it. The M4 also has a special engine that helps power the “Tandem OLED” displays. Apple took a unique approach to the iPad by stacking two OLED screens on top of one another, which requires this special part of the M4 chip to work.
The iPad Pro felt quick when I ran two apps side-by-side, switching between Slack and the web browser, or loading into games. Apps switch in an instant. It wasn’t much different than my M1 iPad for everyday stuff, like browsing the web and opening apps, which seems to be how iPads are mostly used. More on that in the next section.
2024 13-inch Apple iPad Pro
Todd Haselton | CNBC
The new iPads Pro support Apple’s updated $350 Magic Keyboard for iPad Pro (the 11-inch version is $300). It’s awesome and is just like typing on a Mac with a full function row above the number keys to switch apps, adjust the volume or brightness and more. Apple added a much larger trackpad and an aluminum palm rest but kept the same soft outside and “floating” screen mechanism, which allows you to snap the iPad onto the case using its magnetic pins and tilt it back and forth.
2024 13-inch Apple iPad Pro
Todd Haselton | CNBC
The updated Apple Pencil Pro is also a lot of fun. I mostly use the Apple Pencil to sign documents. But folks who draw or paint on their iPads, or need more control in 3D or video apps, will like the new features. I liked squeezing it to change between the tool — pencil or brush or eraser and the color — and the haptic pulse to confirm you’ve squeezed it. Developers can add the squeeze function to their apps so you can access different tools in different apps. The added gyroscope also allows you to tilt and twirl the pencil to change your pencil or pen stroke. Double tap is convenient, too, allowing you to switch between a pencil and eraser tool, for example. The hover function previews where you’re going to touch the display.
Apple promises the same battery life as the last iPads Pro. So you get about 10 hours of web browsing or watching video, or nine hours if you’re browsing the web on a cellular connection. That lined up with what I received during my tests. Expect to get a full workday of use. Still, it’s impressive given this iPad is 1.3mm thinner and 103 grams lighter than the last 12.9-inch iPad Pro.
Here’s my biggest gripe about the Pro models: The software, iPadOS, is what you’ll get on any other iPad. And while I think it works great, it’s time for the Pro models to have a better operating system.
My guess is Apple has something big planned for next month’s Worldwide Developers Conference and I hope it addresses this. I probably won’t get my wish, but I’d love to see the iPad Pro act just like a Mac. Plop it into the keyboard and it turns into a touchscreen MacBook. Lift it off and use it like a regular iPad. It has a newer processor than Apple’s MacBooks, so this should be possible if it’s something Apple wants. Regardless, we need better multitasking.
Stage Manager on the iPad Pro
Todd Haselton | CNBC
Apple’s “Stage Manager” feature was supposed to make it easier to run multiple apps and switch between them, but it’s still too confusing and clunky. Apps should open in separate windows and minimize just like on a Mac. And, since the M-series processors also power Macs, we should be able to run Mac apps, too.
Apple talked a lot about artificial intelligence when it announced the new iPads. But, most of the AI is what Apple has previously called machine learning. A lot of stuff that happens behind the scenes. The camera can take multiple pictures of a document and scan it more accurately, for example. AI can isolate backgrounds in Final Cut Pro or generate music in apps like StaffPad. Apple CEO Tim Cook has said he’ll talk about generative AI during WWDC in June, so there are likely more features coming.
Lastly, I wish the iPads Pro supported an always-on display like Apple’s iPhones Pro. It would let me glance at the iPad to see notifications, music, widgets and more. However, the iPad’s screen refresh rate bottoms out at 10hz instead of 1hz, which means it would still refresh too often and drain more power.
It depends on what you need. It’s my favorite iPad to date, even though I don’t need the faster chip. I love how thin it is and that it’s lighter than the earlier iPads. The updated keyboard is great. The new Apple Pencil Pro works well, but creatives will use it more than I do.
I still think the 13-inch is a little too big and would steer most folks to the 11-inch model. If you don’t care about needing all the speed, you should consider the new iPad Air, which costs less and also comes with a bigger 13-inch screen. If you just need a tablet to browse the web, play games and check email, get the $350 iPad.
Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC
OMAHA, Nebraska — Warren Buffett’s Berkshire Hathaway cut its gigantic Apple stake in the first quarter as the “Oracle of Omaha” continued to downsize his one-time favorite bet.
In its first-quarter earnings report, Berkshire Hathaway reported that its Apple bet was worth $135.4 billion, implying around 790 million shares. That would mark a decline of around 13% in the stake. Apple was still Berkshire’s biggest holding by far at the end of the quarter.
This is the second quarter in a row that the Omaha-based conglomerate has trimmed the stake in the iPhone maker. It sold about 10 million Apple shares (just 1% of its massive stake) in the fourth quarter. This filing, when accounting for the change in Apple’s stock price, would imply Berkshire sold about 116 million shares.
Buffett became a big fan of Apple after one of his investing managers Ted Weschler or Todd Combs convinced him to buy the stock years ago. Buffett even called the tech giant his second-most important business after Berkshire’s cluster of insurers.
Apple
Many has speculated that the 93-year-old investing icon reduced his favorite stake due to valuation concerns. Apple’s stock gained a whopping 48% in 2023 as megacap tech shares led the market rally. At its peak, Apple ballooned in Berkshire’s equity portfolio, taking up 50% of it. The shares are trading at more than 27 times forward earnings.
Shares of the iPhone maker got a big boost in the past week after the firm announced that its board had authorized $110 billion in share repurchases, the largest in company history. However, Apple posted a decline in overall sales and in iPhone sales. The shares are down more than 4% so far this year amid concerns about how it will revive growth.
It’s not without precedent that the Berkshire CEO would adjust the Apple bet. He sold a bit of the stock in the fourth quarter of 2020, but Buffett admitted then that it was “probably a mistake.” Also it’s not usual for Buffett to trim a position that has grown so large.
Even with the sale, Berkshire is still Apple’s largest shareholder outside of exchange-traded fund providers.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Market check: Stocks surged Wednesday afternoon after the Federal Reserve held interest rates steady at the end of its latest two-day meeting. According to their post-meeting statement, central bankers noted a “lack of further progress” in bringing inflation down to their 2% target. Fed chief Jerome Powell reiterated that concern at his news conference. Powell said that rate cuts would be considered when the Fed feels inflation is on its way to target. “We feel our policy stance is in a good place” and appropriately restrictive, he added. Early in 2024, expectations in the market were for as many as six cuts. Now, there are questions about whether there will be any cuts this year. April, which has historically been one of the stronger months of the year for the market, was rough. Monthly declines in the Dow , the S & P 500 and the Nasdaq broke five-month winning streaks for the three major stock benchmarks. While April overall was terrible, there were some big winners in the Club’s portfolio, including Alphabet up nearly 8%. Before last week’s strong quarter, CNBC learned that Alphabet’s Google had laid off hundreds of employees from so-called core teams. The reorg includes moving some roles to India and Mexico. Crude sinks: U.S. oil prices sank roughly 3% to under $80 per barrel Wednesday. That’s about a seven-week low on West Texas Intermediate crude . The reasons: stockpiles surged on lackluster demand as the U.S. and its international partners continue to push for a ceasefire between the Israelis and Hamas in Gaza. WTI has fallen 9% from its intraday high for the year of $87.67 per barrel. Our lone oil-and-gas stock, Coterra Energy , was down 2% on Wednesday. It’s set to report quarterly results after the close Thursday. Cruise IPO: Viking Holdings shares rose 10% in its debut as a public company Wednesday. The cruise line company Tuesday evening priced roughly 64 million shares at $24 each — toward the higher of the expected range. Viking is the latest in a recent revival of the long-dormant initial public offerings market. The IPO comeback of late has boosted the investment banking arms of Wall Street banks. Morgan Stanley is one of the lead underwriters of the Viking offering. Last month, the Club name delivered a much-needed rebound quarter . Investment banking revenue at Morgan Stanley rose 16% year over year, driven by IPO business. These deals must succeed to entice more private companies to become public, which is crucial to Morgan Stanley. Biggest winners: DuPont was the Club’s biggest winner Wednesday, jumping more than 7% after the chemicals company beat on quarterly earnings and raised guidance. DuPont’s semiconductor business rose 10%, and we see plenty of runway for growth next year thanks to artificial intelligence. GE Healthcare was next, rising nearly 2% after Tuesday’s 14% earnings-driven decline , which we thought was an overreaction. Amazon was our third-best stock, gaining more than 1.5% Wednesday following the e-commerce and cloud giant’s great quarter and what we think was conservative guidance. “There’s no incentive in giving some pie in the sky number,” Jim said during the Morning Meeting . Biggest losers: Starbucks was our biggest loser Wednesday following the terrible quarter and outlook that was out the evening before. Jim blasted the Starbucks CEO in a morning CNBC interview, saying he was “stunned” by Laxman Narasimhan’s lack of awareness of how bad things are at the coffee giant. Estee Lauder was next, dropping 14% after light guidance and worries about China overshadowed quarterly beats. Nvidia was our third-weakest stock Wednesday, dropping more than 5%. The AI chip giant enjoyed a 15% bump last week on all the spending plans from Big Tech. While inching higher Monday, Nvidia also was down 1.5% Tuesday. Club earnings : In a busy week with quarterly reports from 12 portfolio stocks, Thursday brings morning earnings from Linde , Stanley Black & Decker and Bausch Health . After the bell Thursday, Apple is out with its quarter following a bump earlier this week tied to an upgrade from the often-skeptical Bernstein analyst Toni Sacconaghi. Apple has had a rough year, but Sacconaghi sees the pullback as an “attractive entry point.” Jim said the call is ill-advised, and we must wait for the release to see where Apple might go from here. As mentioned earlier, Coterra is also out with earnings Thursday evening, but the post-release conference call won’t be until Friday morning. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
CNBC’s Jim Cramer on Tuesday praised Goldman Sachs for its ability to course-correct after making mistakes, citing a new report about a possible exit of a challenged business. Goldman Sachs is in discussions to sell its credit card partnership with General Motors to Barclays, according to The Wall Street Journal. A move in this direction would be part of the bank’s multiyear effort to step away from consumer banking. Last year, the Journal reported Apple and Goldman were winding down their credit card relationship. GS YTD mountain GS year to date performance. “I continue to like the stock of Goldman Sachs because … they make mistakes and then they change,” Cramer said on ” Squawk on the Street .” Shares of Goldman, where Cramer worked early in his Wall Street career, were modestly lower Tuesday. “If Goldman comes down [more], you buy the stock because when you get out of these things that are not your core competence, your stock’s going to go higher,” he said. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, doesn’t own Goldman but does own Morgan Stanley and Wells Fargo . The Trust also has a position in Apple.
Here are Wednesday’s biggest calls on Wall Street: Barclays reiterates Tesla as equal weight Barclays lowered its price target on Tesla to $180 per share from $225 and said it sees a negative catalyst heading into earnings. “Facing an investment thesis pivot and a sea of uncertainty, this Tesla call is extra highly anticipated; expect negative catalyst.” Mizuho initiates Royal Caribbean as buy Mizuho said the cruise company has a “differentiated” offering. ” RCL has a unique mix of quality ship assets, as well as differentiated destinations, the combination of which drives upside potential to estimates.” Citi upgrades Hancock Whitney to buy from neutral Citi said the regional bank holding company is undervalued. “With the market unfairly pricing in a dour credit outlook across the regional bank space, we are stepping off the sidelines and upgrading HWC to Buy.” Raymond James initiates GE Vernova as outperform Raymond James said it’s bullish on shares of the stock. “Combining strengths across a broad spectrum of conventional and renewable generation, as well as grid technology, Vernova is involved in practically everything. Diversification has both advantages and drawbacks.” HSBC upgrades Danaher to buy from hold HSBC said in its upgrade of the life sciences company that it sees a “biotech funding recovery.” “We upgrade Danaher to Buy from Hold as a quality proxy for the Biotech funding recovery.” Wells Fargo upgrades Omnicom to overweight from equal weight Wells said it’s bullish on shares of the media company. “We also think OMC can rerate as, in our experience, Agency data points become themes and those themes impact the multiples.” Loop reiterates Apple as hold Loop said China is still a major issue for Apple. “Issues remain in China and globally frankly. In China, AAPL has been heavily discounting iPhones, and we are seeing a similar aggressive discount program in several other Asian locales.” Wells Fargo reiterates Microsoft as overweight Wells raised its price target on the stock to $480 per share from $460. “Also continue to see MSFT as the best way to play AI, another 2H catalyst.” TD Cowen upgrades Elf Beauty to buy from hold TD Cowen said it sees robust revenue growth for the beauty company. ” ELF could double revenues over the next 3 years, yielding low-to-mid 20s annual growth rate through digital community marketing leadership, awareness flywheel, skincare & international expansion.” Jefferies downgrades Urban Outfitters to underperform from buy Jefferies said in its downgrade of the stock that it sees slowing traffic. “We have some concern regarding URBN’ s near-term positioning due to slowing foot traffic data, promotional headwinds, and increased competition.” Barclays reiterates Broadcom as overweight Barclays raised its price target on Broadcom to $1,500 per share from $1,405. “Ultimately we come away with a valuable second opinion on the future of AI and a greater appreciation for the company’s many ways to win.” Morgan Stanley reiterates Nvidia as overweight Morgan Stanley said it’s bullish heading into earnings in late May. ” NVDA continues to see strong spending trends in AI, with upward revisions in demand from some of the newer customers such as Tesla and various sovereigns.” Wells Fargo reiterates Goldman Sachs as overweight Wells said it gives a “gold star” to Goldman coming out of earnings. “Overall capital markets revenue was up 14% YoY (best of top 5 U.S. banks), driven by higher IB [investment banking] and trading.” Maxim initiates Apple as buy Maxim said shares of Apple are fairly valued. “We are initiating coverage of Apple ( AAPL) with a Hold rating and $178 12-month price target based on applying the average forward P/E multiple of 25.9 from a comparable list of big-tech companies to our FY25 EPS estimate of $6.89.” Maxim initiates Amazon as buy Maxim said it’s bullish on shares of the e-commerce giant. “We are initiating coverage of Amazon (AMZN) with a Buy and 12-month $218 price target based on applying a 17.5x EV/EBITDA multiple to our 2025 forecast.” Truist upgrades Strategic Education to buy from hold Truist said the educational services company is in an attractive sector. “We are upgrading Strategic Education (STRA) to Buy from Hold and increasing our PT to$125 from $110.” Morgan Stanley upgrades Antero Resources to overweight from equal weight Morgan Stanley said the hydrocarbon exploration company has “attractive leverage to rising gas prices.” “With this note, we upgrade Antero Resources to Overweight as we see the company providing attractive leverage to rising gas prices and leading exposure to the growing LNG fairway in the Gulf Coast.” Raymond James upgrades Commerce Bancshares to outperform from market perform Raymond James upgraded the regional bank following its earnings report. “We are upgrading CBSH shares to Outperform from Market Perform following the release of impressive 1Q results that led us to raise our EPS estimates.” Guggenheim upgrades Group 1 Automotive to buy from neutral Guggenheim said investors should buy the dip on the auto dealership company. “Upgrading GPI to BUY from NEUTRAL, best positioned dealer to navigate current landscape somehow trading at lowest multiple.” Benchmark initiates Canoo as buy Benchmark said the electric vehicle company has the ability to “fund growth.” “We are initiating coverage of GOEV with a Buy rating and $5 target price.” Loop reiterates Netflix as buy Loop said it’s bullish heading into earnings on Thursday. “We believe NFLX’s improving engagement is primarily due to an easing competitive environment as traditional media companies have raised prices, scaled back content investment, and resumed licensing content to NFLX.” Jefferies initiates Nuvalent as buy Jefferies said the biotech company is “best-in-class.” ” NUVL leverages strong expertise in structure-based chemistry and deep understanding of unmet pts needs to develop potentially ;best-in-class’ small molecule targeted cancer therapy.” Truist reiterates Amazon as buy Truist raised its price target on the stock to $216 per share from $195. “We remain constructive on AMZN ahead of 1Q24 earnings slated for 4/30, expecting a beat based on 1) our tracking of NA sales using the Truist Card Data; 2) positive checks into the ads business.”
Tech giants aren’t doing much acquiring these days, due mostly to an unfavorable regulatory environment. But they’re finding other ways to spend billions of dollars on the next big thing.
Amazon’s $2.75 billion investment in artificial intelligence startup Anthropic, announced this week, was its largest venture deal and the latest example of the AI gold rush that’s prompting the biggest tech companies to fling open their wallets.
Anthropic is the developer behind the AI model Claude, which competes with GPT from Microsoft-backed OpenAI, and Google’s Gemini. Along with Meta and Apple, they’re all racing to integrate generative AI into their vast portfolios of products and features to ensure they don’t fall behind in a market that’s predicted to top $1 billion in revenue within a decade.
In 2023, investors pumped $29.1 billion combined into nearly 700 generative AI deals, an increase of more than 260% in value from the prior year, according to PitchBook.
A significant chunk of that money was strategic, in that it came from tech companies rather than venture capitalists or other institutions. Fred Havemeyer, head of U.S. AI and software research at Macquarie, said a fear of missing out is one factor driving their decisions.
“They definitely don’t want to miss out on being part of the AI ecosystem,” Havemeyer said. “I definitely think that there’s FOMO in this marketplace.”
The hefty investments are necessary because AI models are notoriously expensive to build and train, requiring thousands of specialized chips that, to date, have largely come from Nvidia. Meta, which is developing its own model called Llama, has said it’s spending billions on Nvidia’s graphics processing units, one of the many companies that’s helped the chipmaker bolster year-over-year revenue by more than 250%.
Whether going the building or investing route, there are a finite number of companies that can afford to play in the market. In addition to developing the chips, Nvidia has emerged as one of Silicon Valley’s top investors, taking stakes in a number of emerging AI companies, partly as a way to make sure its technology gets widely deployed. Similarly, Microsoft, Google and Amazon sometimes offer cloud credits as part of their investments.
In the Amazon-Anthropic deal announced on Wednesday, the two companies said they’ll work closely together in a variety of ways. Anthropic will be using Amazon Web Services for its computing needs as well as Amazon’s chips. Anthropic’s models will be distributed by Amazon to AWS customers.
Earlier this month, Anthropic launched Claude 3, its most powerful model and one that it says lets users upload photos, charts, documents and other types of unstructured data for analysis and answers.
Microsoft got into the business of generative AI investing earlier, putting $1 billion into OpenAI in 2019. The size of its investment has since swelled to about $13 billion. Microsoft heavily uses OpenAI’s model and offers open source models on its Azure cloud.
Alphabet is playing the part of builder and investor. The company has refocused much of its product development on generative AI, and its newly rebranded Gemini model, adding features into search, documents, maps and elsewhere. Last year, Google committed to invest $2 billion in Anthropic, after previously confirming it had taken a 10% stake in the startup alongside a large cloud contract between the two companies.
In this photo illustration, Gemini Ai is seen on a phone on March 18, 2024 in New York City.
Michael M. Santiago | Getty Images
Havemeyer said tech giants aren’t just throwing money into the “hype cycle,” as these investments in AI startups align with their product road maps.
“I don’t think it’s frivolous,” he said.
Havemeyer said that alliances with big cloud providers not only bring much-needed cash to startups but also help them sign up customers.
The cloud companies are saying, “Come to us, work on our platform, have native access to the latest and greatest AI models, and also use our infrastructure,” Havemeyer said. “It’s also part of a much larger ecosystem play.”
“We’re seeing a lot of alliances appearing among those hyperscalers that have substantial scale, infrastructure and very deep pockets,” he added.
In recent earnings calls, tech execs reiterated their focus on generative AI, making it clear to investors that they have to spend money to make money, whether it’s on internal development or through investing in startups.
Microsoft Chief Financial Officer Amy Hood said last year the company was adjusting its “workforce toward the AI-first work we’re doing without adding material number of people to the workforce.” She said Microsoft will continue to prioritize investing in AI as “the thing that’s going to shape the next decade.”
Leaders of Google, Apple and Amazon have also suggested to investors that they’re willing to cut costs broadly across departments in order to redirect more funding toward their AI efforts.
Startups are among the beneficiaries.
Microsoft has taken stakes in Mistral, Figure and Humane, in addition to OpenAI. The company invested in Inflection AI before the startup essentially dissolved and joined Microsoft this month. Mistral is an open source-focused company that uses Azure’s cloud and offers its service to Azure clients.
Startup Figure AI is developing general-purpose humanoid robots.
Figure AI
Figure, a startup seeking to build a robot that walks like a human, has raised money from Microsoft, OpenAI and Nvidia and was valued last month at $2.6 billion.
Amazon’s biggest bet is Anthropic, pouring in a total of $4 billion so far. The company has also invested in open source AI platform developer Hugging Face.
Google’s investments include Essential AI, which is developing consumer AI programs and is backed by AMD and Nvidia. Alphabet and Nvidia are also investors in Runway ML, a generative AI company known for its video-editing and visual effects tools. Others in Nvidia’s portfolio include Mistral, Perplexity and Cohere.
Meanwhile, many of the Big Tech companies continue to spend internally on developing their own models.
Microsoft has invested in many of the techniques underpinning generative AI through its Microsoft Research division. Amazon reportedly has plans to train a bigger, more data-hungry model than even OpenAI’s GPT-4.
Apple researchers recently published details of their work on MM1, a family of small AI models that can take both text and visual input. Apple is in a different position that its peers in that it doesn’t sell a cloud service. Still, the tech giant is reportedly looking for AI partners, including potentially Google in the U.S. and Baidu in China. An Apple representative declined to comment on AI partners.
Daniel Newman, CEO of technology analysis firm Futurum Group, said tech companies are having to get clever when it comes to investing in AI.
For example, OpenAI’s investment from Microsoft included profit sharing in a nonprofit wing, as well as credits to use Microsoft’s cloud service. Microsoft’s deal for Inflection AI amounted to an expensive acquihire, with some reports putting the total outlay at $1 billion. As part of the transaction, Microsoft hired Inflection AI founder Mustafa Suleyman to lead Copilot AI initiatives.
“I think we’re starting to see some some creativity and dealmaking,” said Newman. With respect to Amazon’s agreement with Anthropic, he said an acquisition would be “a lot harder than investing.”
That’s because regulators across the globe are cracking down on Big Tech, making it more difficult to do sizable acquisitions. Even the investments are attracting scrutiny.
FTC Chair Lina Khan described the probe as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.” The regulator has the authority to order companies to file specific reports or answer questions in writing about their businesses.
“We know regulators are becoming increasingly focused on the traditional path of closing an acquisition,” Newman said. “Right now, the game is having access to the most fundamental IP.”
Rich communication services (RCS) is already a big deal on Android phones with more than a billion users. Those numbers might be going up by the fall, as Google claims Apple will be joining the RCS party.
Apple Unveils Its iPhone 15 and Apple Watch Series 9
A page for Google Messages lists the benefits of RCS, and it also just happened to have a slide saying the feature will come to the iPhone, as first spotted by 9to5Google Thursday.
“Apple has announced it will be adopting RCS in the fall of 2024,” the now-deleted slide said.
Google and Apple didn’t immediately respond to a request for comment on this deleted slide.
Apple already began work on implementing RCS compatibility with its upcoming iPhone last year, but this is the first mention of when this momentous occasion would happen. The timing does seem appropriate as Apple routinely releases its new iPhone in the fall. This could be one of the many announcements of new features for iOS 18 happening in June at Apple’s WWDC.
As for what this means for Android and iPhone users, it could be the end of the green and blue bubble drama. Now this doesn’t mean that the different color bubbles will go away or that Android phones will now have access to iMessage. Android users will still have the green bubble when texting someone with an iPhone. However, things like emoji reactions, message receipts, and high-resolution pictures and videos could be available between the two devices.
Texts were one of the points the Department of Justice focused on when it decided to file a lawsuit against Apple for creating a monopoly on the iPhone. In the suit, there was an interaction CEO Tim Cook had with an individual who said how it was tough for him to send her photos as she was on an Android phone. Cook then told the person, “Buy your mom an iPhone.”
Apple’s Chief Executive Officer Tim Cook attends the China Development Forum in Beijing on March 24, 2024.
Pedro Pardo | AFP | Getty Images
Apple will launch its Vision Pro headset in China this year, CEO Tim Cook told Chinese state media.
In a video posted on one of CCTV’s accounts on Chinese social media site Weibo, Cook was heard responding “yes,” when asked if the Vision Pro would launch in China this year.
The iPhone giant’s sales in the greater China region fell nearly 13% in the December quarter, as Apple contends with consumer caution over spending and more intense competition in the smartphone market from a resurgent Huawei.
Cook reiterated Apple’s commitment to the Chinese market.
“I am very confident in it (China),” Cook said, according to news package posted on one of CCTV’s Weibo accounts. “I love China, I love being here, I love the people and the culture. Every time I come here, I am reminded that anything is possible here.”
The Justice Department filed an antitrust lawsuit against Apple, alleging that they engaged in practices to create a monopoly and keep customers reliant on their iPhones. What do you think?
“I’m glad Tim Cook isn’t alive to see this.”
Laylah Estes, Bus Attendant
“I hope those evil bastards get the full slap on the wrist coming to them.”
February 3, 2016 – A jury orders Apple to pay $626 million in damages after finding that iMessage, FaceTime and other Apple software infringed on another company’s patents. The lawsuit, originally filed in 2010 by the company VirnetX, accuses Apple of violating four patents, which mostly involve methods for real-time communications over the Internet.
February 16, 2016 –Apple refuses to comply with a California judge’s order to assist the FBI in hacking the iPhone of the San Bernardino gunman. A public letter signed by Cook states why the company is refusing to abide by the government’s demands.
August 30, 2016 – The European Union rules that Apple must pay Ireland $14.5 billion in back taxes. According to the EU, Ireland had been giving the tech company a break on taxes for more than two decades. Ireland’s finance minister issues a statement criticizing the EU’s ruling and declares that the country does not play favorites with a lower tax rate for certain companies. In a letter, Cook says he anticipates the EU’s tax ruling will be reversed on appeal.
September 12, 2017 – Apple unveils the iPhone X, alongside the iPhone 8 and iPhone 8 Plus – all of which support wireless charging. The iPhone X will also feature facial detection technology, no home button, a 3D camera and an edge-to-edge screen.
November 18, 2020 –Apple agrees to pay $113 million to settle an investigation by states including California and Arizona over how Apple wasn’t transparent about its iPhone battery problems that led to unexpected device shutdowns.
Apple is in major legal trouble as the Department of Justice (DOJ) and 16 state and district attorneys filed a lawsuit against the iPhone maker, as reported by the Washington Post Thursday. They accuse Apple of building a monopoly with the iPhone.
Apple Unveils Its iPhone 15 and Apple Watch Series 9
The suit alleges Apple’s changes to its rules and high fees created a “degraded user experience.” Some of the practices cited included the iMessage green bubbles for non-iPhone users, the 30% App Store fee, and privacy issues with the Apple Wallet.
“We alleged that Apple has consolidated its monopoly power, not by making its own products better, but by making other products worse,” U.S. Attorney General Merrick Garland said in a press conference Thursday. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
Apple says the suit is wrong on the facts and the law.
“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” the company said in an emailed statement to Gizmodo Thursday. “If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”
Apple routinely finds itself in legal trouble over its business practices, but the company finds ways to keep winning. Last year, the legal battle between Epic and Apple over the App Store payment options went all the way to the Supreme Court, but Apple prevailed in the end.
But that’s in the U.S. Over in the European Union (EU), Apple has been getting spanked by regulations. Not only did regulators make Apple go all-in with USB-C cables for the iPhone 15 last year, but the EU also made Apple open up its software to allow third-party app stores onto its devices.
This illustration picture taken on April 20, 2018 in Paris shows apps for Google, Amazon, Facebook, Apple (GAFA) and the reflexion of a binary code displayed on a tablet screen. (Photo by Lionel BONAVENTURE / AFP) (Photo credit should read LIONEL BONAVENTURE/AFP via Getty Images)
Lionel Bonaventure | Afp | Getty Images
Apple is reportedly in talks with Google to let the iPhone maker license and build its Gemini artificial intelligence engine into the iPhone, according to a Bloomberg report.
Gemini is Google’s suite of generative AI tools, which ranges from chatbots to coding assistants.
Bloomberg, citing people familiar with the matter, said that the two tech giants are “in active negotiations” for Gemini to power certain new features due to be released to the iPhone software later in the year.
Apple could launch the iOS 18 — its latest operating system for the iPhone — at its Worldwide Developer’s Conference in June.
Apple also recently held discussions with OpenAI and has considered using its model, according to the people cited by Bloomberg.
However, the report said “the two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented.”
Apple and Google did not immediately respond to CNBC’s request for comment.
Passengers ride in an electric Waymo full self-driving technology in Santa Monica
Allen J. Schaben | Los Angeles Times | Getty Images
Alphabet’s Waymo robotaxi unit won approval from the California Public Utilities Commission to expand service to parts of Los Angeles and the Bay Area, according to a notice posted to the regulator’s website on Friday.
“Waymo may begin fared driverless passenger service operations in the specified areas of Los Angeles and the San Francisco Peninsula, effective today,” the release said.
In mid-February, Waymo initiated a voluntary recall filing notice with the National Highway Traffic Safety Administration, saying it would fix software issues. The recall followed two previously undisclosed incidents that occurred in Phoenix on Dec. 11, in which unmanned Waymo vehicles crashed into the same towed pickup truck within minutes of each other.
The collisions added to existing concerns about autonomous vehicle use in California. Competing taxi and transit service providers and labor activists are worried about the loss of drivers’ jobs, while safety advocates wrote letters to regulators and politicians asking them to thwart Waymo’s expansion in the state.
The CPUC in February had suspended Waymo’s expansion efforts for up to 120 days to provide for added review time.
In its letter on Friday, the regulator said it was approving the new proposal, due in part to “Waymo’s updated Passenger Safety Plan (PSP), submitted in connection with its expanded operational design domain (ODD) for deployment,” which was also approved by the California Department of Motor Vehicles.
“We’re grateful to the CPUC for this vote of confidence in our operations, which paves the way for the deployment of our commercial Waymo One service in Los Angeles and the San Francisco Peninsula,” a Waymo spokesperson said in a statement.
Waymo’s progress in California comes after General Motors-owned Cruise and Apple bowed out of the autonomous vehicle business in California, while Elon Musk’s Tesla has yet to develop an autonomous vehicle that can safely operate without a human driver at the controls.
California regulators halted operations of self-driving Cruise robotaxis in October after a series of incidents, including one that resulted in a robotaxi rolling over a pedestrian who had first been hit by a human-driven car and was then pulled forward about 20 feet by the Cruise vehicle.
Waymo’s new approvals allow the company’s robotaxis to operate close to Tesla’s Palo Alto engineering headquarters in San Mateo County.
The latest notice applies to the commercial ride-sharing service Waymo One. The company has deployed testing vehicles in those areas for several years.
US President Joe Biden speaks to employees at the CS Wind America Inc on November 29, 2023 in Pueblo, Colorado.
Helen H. Richardson | The Denver Post | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Mixed bag on Wall Street U.S. stocks ended mixed Tuesday as investors prepared for key inflation data due out later this week. The S&P 500 and the Nasdaq Composite closed with small gains, up 0.17% and 0.37%, respectively. The 30-stock Dow fell for a second straight day, off by 0.25%. Bitcoin also extended gains rising above $57,000.
Apple kills EV plans Apple has cancelled its plan to build electric cars, according to Bloomberg. This signals an end to the company’s secretive effort to compete in the EV space against rival Tesla. Reports of Apple’s ambition first surfaced in 2014 after it recruited automotive engineers and other talent from auto companies.
Will South Korean measures work? South Korea’s Japan-style measures to boost corporate governance may not work to lift its undervalued stock markets and tackle the so-called “Korea discount.” In its latest attempt, the Financial Services Commission revealed a “Corporate Value-up Program,” aimed at supporting shareholder returns through incentives including tax benefits.
Honor’s foray into flip phones Chinese technology firm Honor will launch a foldable flip phone this year, the company’s CEO George Zhao told CNBC. It will be the firm’s first entry into the vertical-folding style of smartphone as the company looks to push into the premium end of the market in a challenge to tech giants like Samsung and Apple.
[Pro] Alibaba’s compelling appeal Despite the recent slump in Alibaba’s shares, the Chinese e-commerce giant remains on the radar of fund managers. “Alibaba is our third biggest stock [position] now. Why? The valuation is absolutely compelling,” said Andrew Lapping, Ranmore’s chief investment officer.
Americans’ attitudes about the economy have soured.
Consumer confidence fell to 106.7 in February, said the Conference Board, down from a revised 110.9 in January. This comes after a three-month streak of improving mood.
The index measuring short-term expectations for income, business and the job market fell to 79.8 from 81.5 in January. A reading under 80 often signals an upcoming recession.
While Americans were less worried about food and gas prices, there were rising concerns over jobs and the upcoming presidential elections.
“The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy,” said Dana Peterson, chief economist at The Conference Board.
“While overall inflation remained the main preoccupation of consumers, they are now a bit less concerned about food and gas prices, which have eased in recent months. But they are more concerned about the labor market situation and the US political environment.”
The drop in consumer confidence was broad based, affecting most income groups, as well as among people under 35 years old and those aged 55 and over, according to Peterson.
The survey findings reveal that despite data showing a strong labor market and a surprisingly resilient economy, public perception on the economy proves to be a challenge ahead of high-stakes elections this year.
This signals troubling signs for President Joe Biden, who has been trying to tout his administration’s economic accomplishments ahead of a likely rematch against Republican nominee Donald Trump in November.
