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Tag: Computers/Consumer Electronics

  • A stock-market milestone: Apple is now worth more than the entire Russell 2000

    A stock-market milestone: Apple is now worth more than the entire Russell 2000

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    The market capitalization of Apple Inc. has surpassed that of the entire Russell 2000 for two weeks, the longest stretch on record, according to Bloomberg data.

    Apple’s market capitalization, which measures how much the company is worth based on the value of all its outstanding stock, surpassed that of the Russell 2000
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    on April 27 and has held higher through Monday. The only other time that occurred was Sept. 1, 2020, when Apple’s valuation passed that of the small-cap index for only a day.

    Apple’s premium over this group of small-cap stocks continued to widen over the past two weeks as the consumer-technology giant reported earnings that surpassed Wall Street analysts’ expectations.

    With a market capitalization of roughly $2.7 trillion, Apple is now worth roughly $100 billion more than the combined value of all 2,000 stocks in the Russell 2000, according to Bloomberg data shared with MarketWatch.

    To be sure, the gap narrowed somewhat on Monday as Apple shares declined by 0.4% to $171.80, while the Russell 2000 gained 1.3% to trade at 1,763.

    A team of stock-market analysts from Bespoke Investment Group illustrated the trend in a chart shared on Twitter Monday.

    U.S. equity benchmarks have powered higher in 2023, but some say the strength in popular indexs like the S&P 500 and Nasdaq Composite has masked weakness in other corners of the market.

    Both the S&P 500, which has risen more than 7% year-to-date, and the Nasdaq Composite, which has risen nearly 18%, owe the bulk of their gains to a handful of megacap technology stocks including Apple, Microsoft Corp.
    MSFT,
    +0.16%
    ,
    Alphabet Inc.
    GOOG,
    -0.81%

    and Nvidia Corp.
    NVDA,
    +2.16%

    The top 10 stocks in the S&P 500 hold a 29% weight in the index, and have been responsible for around 70% of its year-to-date performance gains, according to a MarketWatch report from last week.

    See: The S&P 500 is top-heavy with tech. Here’s what that says about future stock-market returns.

    The Russell 2000, meanwhile, is essentially unchanged since the start of 2023. Apple, by comparison, has risen more than 32% since Jan. 1, according to FactSet data. The relative weakness in small-caps has inspired discussion about whether this might be a buying opportunity, as market strategists told Barron’s.

    See: Small-Cap Stocks Have Been Crushed. 3 With Big Potential.

    Small-caps have struggled against a plethora of headwinds since the start of 2023. Shrinking corporate earnings, a string of regional-bank failures and signs of a looming recession have taken a heavy toll. Facing so much uncertainty, equity investors have sought safety in shares of megacap technology names this year following a punishing selloff in 2022.

    “It is pretty incredible that one company could overtake an entire universe of small-cap stocks in terms of size,” said Callie Cox, U.S. equity strategist at eToro, during a phone interview with MarketWatch. “To me, it really speaks to how beaten down small-caps are.”

    When Apple reported earnings for the quarter ended in March last week, the company’s management revealed a surprise growth in its iPhone business, which helped to overcoming a shortfall in Mac revenue. The company also promised investors billions more in dividends and stock repurchases, which helped to boost the stock price. Apple’s shares traded higher in response.

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  • Walmart, Alibaba, Target, and More Stocks to Watch This Week

    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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  • Palantir Earnings Sent the Stock Soaring. Why Analysts Aren’t So Excited.

    Palantir Earnings Sent the Stock Soaring. Why Analysts Aren’t So Excited.

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    Palantir


    Technology’s earnings looked like they had something for everyone, as the data-analytics software company forecast its first profitable year and talked up its artificial-intelligence prospects. However, some Wall Street analysts are focused on slowing revenue growth as a reason to be wary of the stock. 

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  • Palantir stock roars more than 20% higher after second straight earnings surprise

    Palantir stock roars more than 20% higher after second straight earnings surprise

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    Palantir Technologies Inc. delivered a surprise profit for the second quarter in a row Monday, while also topping revenue expectations, sending shares more than 20% higher in after-hours trading.

    The software company reported first-quarter net income of $17 million, or 1 cent a share, whereas Palantir PLTR posted a loss of $101 million, or 5 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting a loss of a penny a share on a GAAP basis. The stock closed with a 4.7% gain at $7.76 in Monday’s…

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  • CEOs of Microsoft and Alphabet called to AI meeting at White House

    CEOs of Microsoft and Alphabet called to AI meeting at White House

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    Vice President Kamala Harris will host the chief executives of Alphabet GOOG GOOGL, Microsoft MSFT, OpenAI and Anthropic at the White House on Thursday to discuss artificial-intelligence issues.

    Harris and senior administration officials aim to have a “frank discussion” of the risks in AI development and of “ways we can work together to ensure the American people benefit from advances in AI while being protected from its harms,” according to an invitation for the meeting obtained by MarketWatch.

    The…

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  • Students are turning to ChatGPT for study help, and Chegg stock is plummeting 30%

    Students are turning to ChatGPT for study help, and Chegg stock is plummeting 30%

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    Chegg Inc. shares plunged more than 30% Monday afternoon and were headed toward their lowest price since 2017, after the online-education company’s forecast called for an unexpected revenue decline as students begin to use ChatGPT.

    Chegg CHGG reported first-quarter earnings of $2.2 million, or 2 cents a share, on net revenue of $187.6 million, down from $202.2 million a year ago. After adjusting for stock compensation and other effects, the company reported earnings of 27 cents a share, down from 32 cents a share in the same…

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  • Intel Suffers Largest-Ever Loss Amid PC Slump, Fierce Competition

    Intel Suffers Largest-Ever Loss Amid PC Slump, Fierce Competition

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    Intel Suffers Largest-Ever Loss Amid PC Slump, Fierce Competition

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  • Deutsche Boerse Makes Offer for SimCorp

    Deutsche Boerse Makes Offer for SimCorp

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    By Sarah Sloat

    Deutsche Boerse SE said Thursday it would make a voluntary takeover offer for Danish software company SimCorp AS for a total 3.9 billion euros ($4.31 billion).

    The all-cash offer of DKK735 ($108.86) per share represents a 38.9% premium over the closing price of DKK529, and a 45.3% premium over the three-month volume-weighted…

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  • Why the U.K. is blocking Microsoft’s deal for Activision and what comes next

    Why the U.K. is blocking Microsoft’s deal for Activision and what comes next

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    A U.K. regulator made the surprising decision Wednesday to block Microsoft Corp.’s deal for Activision Blizzard Inc. in a further sign of resistance to the power of Big Tech.

    The U.K.’s Competition and Markets Authority announced Wednesday that it would prohibit the $69 billion deal as the merger could hurt competition in the nascent market for cloud gaming. The decision comes after the agency said in late March that it no longer thought the deal would threaten console gaming, which is a vastly larger and more established…

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  • Fox’s stock slides 4% on news Tucker Carlson is leaving the network

    Fox’s stock slides 4% on news Tucker Carlson is leaving the network

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    Tucker Carlson is leaving Fox News, according to a statement from the network on Monday that sent Fox shares down 4%.

    “FOX News Media and Tucker Carlson have agreed to part ways,” the company said in a terse statement. “We thank him for his service to the network as a host and prior to that as a contributor.”

    Carlson’s last program at the…

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  • SAP Cloud Sales Miss and Software Giant Cuts Outlook. Why the Stock Is Rising.

    SAP Cloud Sales Miss and Software Giant Cuts Outlook. Why the Stock Is Rising.

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    SAP


    missed expectations for sales in its key cloud division and cut its outlook in first-quarter earnings released Friday. But the stock is still rising after the German software giant beat estimates for overall profit and revenue.



    SAP


    (ticker: SAP) reported earnings of €1.27 ($1.39) a share on revenue of €7.44 billion in the first three months of 2023. Analysts surveyed by FactSet had expected profit of €1.10 on sales of €7.30 billion.

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  • Ericsson reports forecast-beating profit, but warns of choppy 2023

    Ericsson reports forecast-beating profit, but warns of choppy 2023

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    STOCKHOLM–Ericsson AB on Tuesday posted a smaller-than-expected drop in first-quarter net profit, but cautioned that the operating environment will remain choppy in 2023 with poor visibility as operators remain cautious with spending plans and continue to adjust inventories.

    The Swedish telecommunications-equipment company
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    ERIC.B,
    +0.24%

    said that customers in early 5G markets have slowed their deployment pace somewhat, while some customers have also lowered the elevated inventory levels built up in a tight supply environment. It expects this inventory adjustment to be mostly completed during the second quarter but might spill into the third quarter.

    Overall sales in its key network unit fell 4% on the year in the first quarter, but strong sales mainly in India helped offset a 30% sales drop in North America.

    Large roll-out projects weighed on networks gross margins in 1Q and will remain dilutive to gross margin in the short term, while network sales in 2Q are expected to be in line with 1Q, it added.

    Ericsson reported net profit attributable to shareholders of 1.52 billion Swedish kronor ($146.9 million) compared with SEK2.94 billion a year earlier, as sales rose 14% to SEK62.55 billion.

    Analysts polled by FactSet had expected net profit of SEK1.44 billion on sales of SEK60.95 billion.

    Write to Dominic Chopping at dominic.chopping@wsj.com

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  • Judge delays start of Fox News defamation trial until Tuesday

    Judge delays start of Fox News defamation trial until Tuesday

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    NEW YORK — The Delaware judge overseeing a voting machine company’s $1.6 billion defamation lawsuit against Fox News announced late Sunday that he was delaying the start of the trial until Tuesday. He did not cite a reason.

    The trial, which has drawn international interest, had been scheduled to start Monday morning with jury selection and opening statements.

    The case centers on whether Fox defamed Dominion Voting Systems by spreading false claims that the company rigged the 2020 presidential election to prevent former President Donald Trump’s reelection. Records produced as part of the lawsuit show that many of the network’s hosts and executives didn’t believe the allegations but aired them, anyway.

    Representatives for Dominion and for the two entities it’s suing — Fox News and its parent company, Fox Corp.
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    -1.35%

    — did not immediately return requests for comment on the delay. In his statement, Delaware Superior Court Judge Eric Davis said only that the trial, including jury selection, would be continued until Tuesday and that he would announce the delay in court on Monday.

    That’s when Fox News executives and the network’s star hosts were scheduled to begin answering for their role in spreading doubt about the 2020 presidential election and creating the gaping wound that remains in America’s democracy.

    Jurors hearing the $1.6 billion lawsuit filed against Fox by Dominion Voting Systems would have to answer a specific question: Did Fox defame the voting machine company by airing bogus stories alleging that the election was rigged against then-President Donald Trump, even as many at the network privately doubted the false claims being pushed by Trump and his allies?

    Yet the broader context looms large. A trial would test press freedom and the reputation of conservatives’ favorite news source. It also would illuminate the flow of misinformation that helped spark the Jan. 6, 2021, insurrection at the U.S. Capitol and continues to fuel Trump’s hopes to regain power in 2024.

    Fox News stars Tucker Carlson and Sean Hannity and founder Rupert Murdoch are among the people who had been expected to testify.

    Barring a settlement, opening statements are now scheduled for Tuesday.

    “This is Christmas Eve for defamation scholars,” said RonNell Andersen Jones, a University of Utah law professor.

    If the trial were a sporting event, Fox News would be taking the field on a losing streak, with key players injured and having just alienated the referee. Pretrial court rulings and embarrassing revelations about its biggest names have Fox on its heels.

    Court papers released over the past two months show Fox executives, producers and personalities privately disbelieved Trump’s claims of a fraudulent election. But Dominion says Fox News was afraid of alienating its audience with the truth, particularly after many viewers were angered by the network’s decision to declare Democrat Joe Biden the winner in Arizona on election night in November 2020.

    Some rulings by the judge have eased Dominion’s path. In a summary judgment, Davis said it was “CRYSTAL clear” that fraud allegations against the company were false. That means trial time won’t have to be spent disproving them at a time when millions of Republicans continue to doubt the 2020 results.

    Davis said it also is clear that Dominion’s reputation was damaged, but that it would be up to a jury to decide whether Fox acted with “actual malice” — the legal standard — and, if so, what that’s worth financially.

    Fox witnesses would likely testify that they thought the allegations against Dominion were newsworthy, but Davis made it clear that’s not a defense against defamation.

    New York law protects news outlets from defamation for expressions of opinion. But Davis methodically went through 20 different times on Fox when allegations against Dominion were discussed, ruling that all of them were fully or partly considered statements of fact, and fair game for a potential libel finding.

    “A lawsuit is a little bit like hitting a home run,” said Cary Coglianese, law professor at the University of Pennsylvania. “You have to go through all of the bases to get there.” The judge’s rulings “basically give Dominion a spot at third base, and all they have to do is come home to win it.”

    Both Fox and Dominion are incorporated in Delaware, though Fox News is headquartered in New York and Dominion is based in Denver.

    Fox angered Davis this past week when the judge said the network’s lawyers delayed producing evidence and were not forthcoming in revealing Murdoch’s role at Fox News. A Fox lawyer, Blake Rohrbacher, sent a letter of apology to Davis on Friday, saying it was a misunderstanding and not an intention to deceive.

    It’s not clear whether that would affect a trial. But it’s generally not wise to have a judge wonder at the outset of a trial whether your side is telling the truth, particularly when truth is the central point of the case, Jones said.

    The lawsuit essentially comes down to whether Dominion can prove Fox acted with actual malice by putting something on the air knowing that it was false or acting with a “reckless disregard” for whether it was true. In most libel cases, that is the most difficult hurdle for plaintiffs to get past.

    Dominion can point to many examples where Fox figures didn’t believe the charges being made by Trump allies such as Sidney Powell and Rudolph Giuliani. But Fox says many of those disbelievers were not in a position to decide when to air those allegations.

    “We think it’s essential for them to connect those dots,” Fox lawyer Erin Murphy said.

    If the case goes to trial, the jury will determine whether a powerful figure like Murdoch — who testified in a deposition that he didn’t believe the election-fraud charges — had the influence to keep the accusations off the air.

    “Credibility is always important in any trial in any case. But it’s going to be really important in this case,” said Jane Kirtley, director of the Silha Center for the Study of Media Ethics and the Law at the University of Minnesota.

    Kirtley is concerned that the suit may eventually advance to the U.S. Supreme Court, which could use it as a pretext to weaken the actual malice standard that was set in a 1964 decision in New York Times Co. v. Sullivan. That, she feels, would be disastrous for journalists.

    Dominion’s lawsuit is being closely watched by another voting-technology company with a separate but similar case against Fox News. Florida-based Smartmatic has looked to some rulings and evidence in the Dominion case to try to enhance its own $2.7 billion defamation lawsuit in New York. The Smartmatic case isn’t yet ready for trial but has survived Fox News’ effort to get it tossed out.

    Many experts are surprised Fox and Dominion have not reached an out-of-court settlement, though they can at any time. There’s presumably a wide financial gulf. In court papers, Fox contends the $1.6 billion damages claim is a wild overestimate.

    Dominion’s motivation may also be to inflict maximum embarrassment on Fox with the peek into the network’s internal communications following the election. Text messages from January 2021 revealed Carlson telling a friend that he passionately hated Trump and couldn’t wait to move on.

    Dominion may also seek an apology.

    The trial has had no apparent effect on Fox News’ viewership; it remains the top-rated cable network. Fox’s media reporter, Howard Kurtz, said earlier this year that he had been banned from covering the lawsuit, but the network has since changed direction. Kurtz discussed the case on his show Sunday, saying he would be in Wilmington for the beginning of the trial.

    “The real potential danger is if Fox viewers get the sense that they’ve been lied to. There’s a real downside there,” said Charlie Sykes, founder of the Bulwark website and an MSNBC contributor.

    There’s little indication that the case has changed Fox’s editorial direction. Fox has embraced Trump once again in recent weeks following the former president’s indictment by a Manhattan grand jury, and Carlson presented an alternate history of Capitol riot, based on tapes given to him by House Speaker Kevin McCarthy, R-Calif.

    Just because there has been limited discussion of the Dominion suit on Fox doesn’t mean its fans are unaware of it, said Tim Graham, director of media analysis at the conservative watchdog Media Research Center.

    “There’s a certain amount of tribal reaction to this,” Graham said. “When all of the other networks are thrilling to revealing text messages and emails, they see this as the latest attempt by the liberal media to undermine Fox News. There’s going to be a rally-around-Rupert effect.”

    Fox Corp. and MarketWatch parent News Corp. share common ownership.

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  • Microsoft Looks to ChatGPT AI to Transform Its Digital Ad Business

    Microsoft Looks to ChatGPT AI to Transform Its Digital Ad Business

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    Microsoft Looks to ChatGPT AI to Transform Its Digital Ad Business

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  • National Instruments, Tesla, Bed Bath & Beyond, and More Stock Market Movers

    National Instruments, Tesla, Bed Bath & Beyond, and More Stock Market Movers

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  • The new Steve Jobs book is free to download now — here’s where to get it 

    The new Steve Jobs book is free to download now — here’s where to get it 

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    Apple founder Steve Jobs has continued to inspire even after his death in 2011. Just this week, in fact, Tim Cook — Apple’s AAPL current CEO and chief operating officer for a decade-plus under Jobs — mused in a GQ interview on life lessons imparted by his predecessor. 

    And now anyone who wants to get an intimate glimpse into Jobs’s wisdom and reflections on his life, which was cut short at just 56, can download a curated collection of personal correspondence, speeches and interviews — for free.

    “Make…

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  • Coinbase, Newmont, Tilray, Hexo, Virgin Orbit, and More Stock Market Movers

    Coinbase, Newmont, Tilray, Hexo, Virgin Orbit, and More Stock Market Movers

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  • Apple CEO Tim Cook explains why consumers would want a mixed-reality headset

    Apple CEO Tim Cook explains why consumers would want a mixed-reality headset

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    Apple Inc. Chief Executive Tim Cook, GQ’s latest cover boy, has a sales pitch for a mixed-reality headset.

    “The idea that you could overlay the physical world with things from the digital world could greatly enhance people’s communication, people’s connection,” Cook told GQ, without confirming the rumored June 5 announcement of Apple’s
    AAPL,
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    Reality Pro headset.

    Apple’s plunge into the so-called metaverse would offer a jolt to a flagging industry as well as serious competition to Facebook parent Meta Platforms Inc.
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    +0.53%
    ,
    Alphabet Inc.’s
    GOOGL,
    +0.61%

    GOOG,
    +0.88%

    Google, Microsoft Corp.
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    -0.37%
    ,
    Snap Inc.
    SNAP,
    +0.27%

    and others.

    ‘It’s the idea that there is this environment that may be even better than just the real world — to overlay the virtual world on top of it might be an even better world.’


    — Tim Cook

    Creative users, the lifeblood of Apple’s business model, stand to gain the most from virtual-reality products, according to Cook.

    “It’s the idea that there is this environment that may be even better than just the real world — to overlay the virtual world on top of it might be an even better world,” Cook told GQ. “If it could accelerate creativity, if it could just help you do things that you do all day long and you didn’t really think about doing them in a different way.”

    Cook also looked inward during the far-ranging interview, explaining his persona and the challenges in succeeding the legendary Steve Jobs as Apple CEO. Jobs died in 2011.

    “I always hate the word normal in a lot of ways, because what some people use to describe normal equals straight,” Cook said. “Some people would use that word in that kind of way. I don’t know — I’ve been described as a lot of things, but probably normal is not among those.”

    Added Cook: “I knew I couldn’t be Steve. I don’t think anybody could be Steve. I think he was a once-in-a-hundred-years kind of individual, an original by any stretch of the imagination. And so what I had to do was to be the best version of myself.”

    From the archives (October 2011): Steve Jobs: MarketWatch’s CEO of the Decade

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  • Dominion Voting Systems’ defamation case against Fox News should continue to trial, says Delaware judge

    Dominion Voting Systems’ defamation case against Fox News should continue to trial, says Delaware judge

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    DOVER, Del. (AP) — A voting-machine company’s defamation case against Fox News over its airing of false allegations about the 2020 presidential election will go to trial after a Delaware judge on Friday ruled that a jury must decide whether the network aired the claims with actual malice, the standard for proving libel against public figures.

    Superior Court Judge Eric Davis ruled that neither Fox nor Dominion Voting Systems had presented a convincing argument to prevail on whether Fox acted with malice without the case going to trial. But he also ruled that the statements Dominion had challenged constitute defamation “per se” under New York law. That means Dominion did not have to prove damages to establish liability by Fox.

    ‘The evidence developed in this civil proceeding demonstrates that [it] is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true.’


    — Superior Court Judge Eric Davis

    “The evidence developed in this civil proceeding demonstrates that [it] is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true,” Davis wrote in his summary judgment ruling.

    The decision paves the way for a trial start in mid-April.

    Dominion is suing the network for $1.6 billion, claiming Fox defamed it by repeatedly airing false allegations by then-President Donald Trump and his allies in the weeks after the 2020 election claiming the company’s machines and its accompanying software had switched votes to Democrat Joe Biden. The network aired the claims even though internal communications show that many of its executives and hosts didn’t believe them.

    The company sued Fox News and its parent, Fox Corp.
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    FOXA,
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    ,
    which shares ownership with News Corp
    NWS,
    +1.99%

    NWSA,
    +1.77%
    ,
    parent company of MarketWatch publisher Dow Jones.

    Don’t miss: Top congressional Democrats Schumer and Jeffries seek on-air acknowledgements that Fox News personalities knew Trump lost and election wasn’t stolen

    See: 2020 election ‘was not stolen,’ Fox Chairman Rupert Murdoch said under oath, according to evidence in Dominion case

    Also: Pro-Trump on air, Tucker Carlson privately told his Fox News producer that he hates the former president with a passion

    Fox has said it was simply covering newsworthy allegations made by a sitting president claiming his re-election had been stolen from him. In his ruling, Davis said Fox could not escape potential liability by claiming privileges for neutral reporting or opinion.

    “FNN’s failure to reveal extensive contradicting evidence from the public sphere and Dominion itself indicates that its reporting was not disinterested.” the judge wrote.

    In a statement issued after the ruling, Dominion said it was gratified that the court had rejected Fox’s arguments and found “as a matter of law that their statements about Dominion are false. We look forward to going to trial.”

    Fox emphasized that the case is about the media’s First Amendment protections in covering the news. “Fox will continue to fiercely advocate for the rights of free speech and a free press as we move into the next phase of these proceedings,” the network said in a statement.

    See: ‘A complete nut’: Fox News hosts didn’t believe 2020 election fraud claims

    Also: Tucker Carlson, Sean Hannity among potential witnesses at Fox News trial

    The coverage fed an ecosystem of misinformation surrounding Trump’s loss in 2020 that has persisted ever since.

    MarketWatch contributed.

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  • EA laying off 6% of staff in cost-cutting push for videogame publisher

    EA laying off 6% of staff in cost-cutting push for videogame publisher

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    Electronic Arts Inc. on Wednesday announced intentions to slash 6% of its workforce as the videogame publisher looks to cut costs.

    “As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” Chief Executive Andrew Wilson said in a note to employees that was also shared publicly.

    Wilson…

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