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Tag: Consumer electronics

  • Russian hacking group accessed Microsoft executive emails, company says

    Russian hacking group accessed Microsoft executive emails, company says

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    Microsoft Corp. said Friday a Russian hacking group illegally gained access to some of its top executives’ email accounts.

    In a regulatory filing, the software giant
    MSFT,
    +1.22%

    said a group called Nobelium was responsible for the attack.

    In late November, the group accessed “a legacy non-production test tenant account and [gained] a foothold, and then used the account’s permissions to access a very small percentage of Microsoft corporate email accounts, including members of our senior leadership team and employees in our cybersecurity, legal, and other functions, and exfiltrated some emails and attached documents,” Microsoft’s Security Response Center wrote in a blog post.

    Microsoft’s senior leadership team, which includes Chief Financial Officer Amy Hood and President Brad Smith, routinely meets with Chief Executive Satya Nadella.

    The company reported that there were no signs Nobelium had obtained customer data, production systems or proprietary source code.

    A Microsoft spokesperson provided this comment late Friday: “Our security team recently detected an attack on our corporate systems attributed to the Russian state-sponsored actor Midnight Blizzard. We immediately activated our response process to investigate, disrupt malicious activity, mitigate the attack, and deny the threat actor further access. The attack was not the result of a vulnerability in Microsoft products or services. To date, there is no evidence that the threat actor had any access to customer environments, production systems, source code, or AI systems. More information is available in our blog.”

    Nobelium, also known as APT29 or Cozy Bear, is a shadowy hacking group that attempted to crack the systems of the U.S. Defense Department and did breach the Democratic National Committee’s systems in 2016.

    Netskope Threat Labs, which tracks Nobelium, said the hacking group uses a variety of techniques to compromise accounts, including compromised Azure AD accounts to collect victim emails. “This hack underscores the importance of securing corporate email accounts, even those in non-production and test environments,” a Netskope spokesperson said. “Even if the email account isn’t regularly used or doesn’t contain anything sensitive, it can still be used to launch additional attacks.”

    Microsoft’s disclosure comes amid new U.S. requirements to report cybersecurity incidents.

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  • So Long, Apple and Tesla. We Built a Better Magnificent 7.

    So Long, Apple and Tesla. We Built a Better Magnificent 7.

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    In this article

    AMZN

    AAPL

    MSFT

    NVDA

    SPX

    The Magnificent Seven had an extraordinary year in 2023—one that will be very difficult to repeat. And there will be a new Magnificent Seven in 2024.

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  • WSJ News Exclusive | Hewlett Packard Enterprise Near Deal to Buy Juniper Networks

    WSJ News Exclusive | Hewlett Packard Enterprise Near Deal to Buy Juniper Networks

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    Updated Jan. 8, 2024 6:31 pm ET

    Hewlett Packard Enterprise is in advanced talks to buy Juniper Networks for about $13 billion, in a bid to better position the nearly 100-year-old technology company in the era of artificial intelligence. 

    A deal between the two companies could be announced as soon as this week, according to people familiar with the matter, assuming the talks don’t fall apart. 

    Copyright ©2024 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • The Russell 2000 Index has soared, but you might be better off looking elsewhere for quality small-cap stocks

    The Russell 2000 Index has soared, but you might be better off looking elsewhere for quality small-cap stocks

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    The Russell 2000 Index soared 12% in December, which might reflect investors’ exuberance about the state of the U.S. economy — it appears the Federal Reserve has won its battle against inflation.

    But if you are looking to broaden your exposure to the stock market beyond the large-cap S&P 500
    SPX,
    buying shares of a fund that tracks the Russell 2000 Index
    RUT
    might not be the best way to do it. This is because the Russell 2000 isn’t selective — it is made up of the smallest 2,000 companies by market capitalization in the Russell 3000 Index
    RUA,
    which itself is designed to capture about 98% of the U.S. public equity market.

    A better choice might be the S&P Small Cap 600 Index
    SML
    because S&P Global requires companies to show four consecutive quarters of profitability to be initially included in the index, among other criteria.

    Below is a screen of analysts’ favorite stocks among the S&P Small Cap 600, along with another for the Russell 2000.

    Watch for a “head fake”

    Much of the small-cap buying in December might have resulted from covering of short positions by hedge-fund managers. This idea is backed by the timing of trading activity immediately following the Federal Open Market Committee’s announcement on Dec. 13 that it wouldn’t change its interest-rate policy, according to MacroTourist blogger Kevin Muir. The Fed’s economic projections released the same day also indicate three cuts to the federal-funds rate in 2024.

    Heading into the end of the year, a fund manager who had shorted small-caps, and then was surprised by the Fed’s interest-rate projections, might have scrambled to buy stocks it had shorted to close-out the positions and hopefully lock in gains, or limit losses.

    That buying activity and resulting pop in small-cap prices could set up a typical “head fake” for investors as the new year begins, according to Muir.

    The long-term case for quality

    Looking at data for companies’ most recently reported fiscal quarters, 58% of the Russell 2000 reported positive earnings per share, according to data provided by FactSet. In other words, hundreds of these companies were losing money. These might include promising companies facing “binary events,” such as make-or-break drug trials in the biotechnology industry.

    In comparison, 78% of companies among the S&P Small Cap 600 were profitable, and 93% of the S&P 500 were in the black.

    Here are long-term performance figures for exchange-traded funds that track all three indexes:

    ETF

    Ticker

    2023

    3 years

    5 years

    10 years

    15 years

    20 years

    iShares Russell 2000 ETF

    IWM 17%

    7%

    61%

    99%

    428%

    365%

    iShares Core S&P Small Cap ETF

    IJR 16%

    25%

    69%

    129%

    540%

    515%

    SPDR S&P 500 ETF Trust

    SPY 26%

    34%

    108%

    210%

    629%

    527%

    Source: FactSet

    An approach tracking the S&P Small Cap 600 has outperformed the Russell 2000 for all periods, with margins widening as you go further back.

    Brett Arends: You own the wrong small-cap fund. How to get into a better one.

    Looking ahead for quality… or not

    For the first screen, we began with the S&P Small Cap 600 and narrowed the list to 385 companies covered by at least five analysts polled by FactSet. Then we cut the list to 92 companies with “buy” or equivalent ratings among at least 75% of the covering analysts.

    Here are the 20 remaining stocks among the S&P Small Cap 600 with the highest 12-month upside potential indicated by analysts’ consensus price targets:

    Company

    Ticker

    Share “buy” ratings

    Dec. 29 price

    Consensus price target

    Implied 12-month upside potential

    Vir Biotechnology Inc.

    VIR,
    +4.47%
    88%

    $10.06

    $32.00

    218%

    Arcus Biosciences Inc.

    RCUS,
    +3.04%
    82%

    $19.10

    $41.00

    115%

    Xencor Inc.

    XNCR,
    +6.03%
    92%

    $21.23

    $39.83

    88%

    Dynavax Technologies Corp.

    DVAX,
    +2.86%
    100%

    $13.98

    $24.80

    77%

    ModivCare Inc.

    MODV,
    +0.95%
    100%

    $43.99

    $75.50

    72%

    Xperi Inc

    XPER,
    +1.81%
    80%

    $11.02

    $18.20

    65%

    Thryv Holdings Inc.

    THRY,
    100%

    $20.35

    $32.75

    61%

    Ligand Pharmaceuticals Inc.

    LGND,
    +1.25%
    100%

    $71.42

    $114.80

    61%

    Green Plains Inc.

    GPRE,
    -1.67%
    80%

    $25.22

    $40.30

    60%

    Patterson-UTI Energy Inc.

    PTEN,
    +0.28%
    75%

    $10.80

    $17.00

    57%

    Ironwood Pharmaceuticals Inc. Class A

    IRWD,
    +8.48%
    83%

    $11.44

    $17.83

    56%

    Catalyst Pharmaceuticals Inc.

    CPRX,
    +1.78%
    100%

    $16.81

    $26.20

    56%

    Payoneer Global Inc.

    PAYO,
    -3.45%
    100%

    $5.21

    $8.00

    54%

    Helix Energy Solutions Group Inc.

    HLX,
    -2.63%
    83%

    $10.28

    $15.00

    46%

    Arlo Technologies Inc.

    ARLO,
    -3.05%
    100%

    $9.52

    $13.80

    45%

    Pacira Biosciences Inc.

    PCRX,
    -5.16%
    100%

    $33.74

    $48.40

    43%

    Privia Health Group Inc.

    PRVA,
    +2.95%
    100%

    $23.03

    $32.53

    41%

    Semtech Corp.

    SMTC,
    -1.23%
    92%

    $21.91

    $30.90

    41%

    Talos Energy Inc.

    TALO,
    +1.19%
    78%

    $14.23

    $20.00

    41%

    Digi International Inc.

    DGII,
    -1.21%
    100%

    $26.00

    $36.14

    39%

    Source: FactSet

    Any stock screen should only be considered a starting point. You should do your own research to form your own opinion before making any investment. one way to begin is by clicking on the tickers for more about each company.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Moving on to the Russell 2000, when we narrowed this group to stocks covered by at least five analysts polled by FactSet, we were left with 936 companies. Among these, 355 have “buy” or equivalent ratings among at least 75% of the covering analysts.

    Among those 355 stocks in the Russell 2000, these 20 have the highest implied upside over the next year, based on consensus price targets:

    Company

    Ticker

    Share “buy” ratings

    Dec. 29 price

    Consensus price target

    Implied 12-month upside potential

    Karyopharm Therapeutics Inc.

    KPTI,
    +4.18%
    75%

    $0.87

    $6.00

    594%

    Rallybio Corp.

    RLYB,
    +0.42%
    100%

    $2.39

    $16.50

    590%

    Vor Biopharma Inc.

    VOR,
    -0.89%
    100%

    $2.25

    $15.44

    586%

    Tenaya Therapeutics Inc.

    TNYA,
    -0.62%
    100%

    $3.24

    $19.14

    491%

    Compass Therapeutics Inc.

    CMPX,
    -5.13%
    86%

    $1.56

    $9.17

    488%

    Vigil Neuroscience Inc.

    VIGL,
    +2.66%
    88%

    $3.38

    $18.75

    455%

    Trevi Therapeutics Inc.

    TRVI,
    -2.99%
    100%

    $1.34

    $7.33

    447%

    Inozyme Pharma Inc.

    INZY,
    +1.64%
    100%

    $4.26

    $21.00

    393%

    Gritstone bio Inc.

    GRTS,
    +6.86%
    100%

    $2.04

    $10.00

    390%

    Actinium Pharmaceuticals Inc.

    ATNM,
    +4.72%
    83%

    $5.08

    $23.36

    360%

    Lineage Cell Therapeutics Inc.

    LCTX,
    86%

    $1.09

    $4.83

    343%

    Century Therapeutics Inc.

    IPSC,
    +9.64%
    86%

    $3.32

    $14.67

    342%

    Acrivon Therapeutics Inc.

    ACRV,
    +1.83%
    100%

    $4.92

    $21.13

    329%

    Avidity Biosciences Inc.

    RNA,
    +1.22%
    100%

    $9.05

    $37.50

    314%

    Longboard Pharmaceuticals Inc.

    LBPH,
    +316.25%
    100%

    $6.03

    $24.17

    301%

    Omega Therapeutics Inc.

    OMGA,
    -1.33%
    100%

    $3.01

    $12.00

    299%

    Allogene Therapeutics Inc.

    ALLO,
    +12.77%
    82%

    $3.21

    $12.79

    298%

    X4 Pharmaceuticals Inc.

    XFOR,
    +5.21%
    86%

    $0.84

    $3.26

    289%

    Caribou Biosciences Inc.

    CRBU,
    -2.79%
    89%

    $5.73

    $22.25

    288%

    Stoke Therapeutics Inc.

    STOK,
    +11.41%
    78%

    $5.26

    $19.33

    268%

    Source: FactSet

    That’s right — this Russell 2000 list is all biotech. And in case you are wondering if any companies are on both lists, the answer is no.

    Don’t miss: 11 dividend stocks with high yields expected to be well supported in 2024 per strict criteria

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  • Apple's stock falls after 'sell' call from Barclays

    Apple's stock falls after 'sell' call from Barclays

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    Shares of Apple Inc. are starting 2024 with a selloff, after Barclays analyst Tim Long said it was “time for a breather,” citing weak hardware sales as iPhone 15 demand disappoints.

    “We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads and wearables,” Long wrote in a note to clients. “The biggest takeaway from the latest checks is incrementally worse [iPhone] 15 data points out of China, together with developed markets remaining soft.”

    He cut his rating on the stock
    AAPL,
    -0.54%

    to underweight from neutral, and trimmed his price target to $160 from $161. The new target implies about 17% downside from Friday’s closing price of $192.53.

    The stock slumped 1.8% in premarket trading Tuesday, putting it on track to open at a seven-week low.

    Long said iPhone 15 sales have been “lackluster” and believes Phone 16 sales will be the same, as he expects other hardware categories to remain weak. He said it’s time for investors to take a “breather” on the stock, as he doesn’t think it can keep rallying in the face of downbeat demand data, like it did in 2023.

    “We expect reversion after a year when most quarters were missed and the stock outperformed,” Long wrote.

    He expects Apple to report “in-line” fiscal first-quarter results, which runs through December, but he trimmed his second-quarter to further below consensus expectations.

    He now expects earnings per share and revenue for the quarter through March to be down in the low-single-digit percentage range, while the FactSet consensus calls for EPS to be up 2.6% at $1.57 and revenue to rise 1.1% to $95.8 billion.

    Apple’s stock surged 48.2% in 2023, or almost double the S&P 500 index’s
    SPX
    gain of 24.2%, even as revenue for each quarter of fiscal 2023 through September was below that of a year ago.

    Long is now one of just four of the 44 analysts surveyed by FactSet who are bearish on Apple’s stock, while 27 (61%) are bullish and 13 are neutral. His $160 price target is 19.2% below the average target of $197.92.

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  • Intel Rallied 91% This Year. Expect Higher Highs in 2024.

    Intel Rallied 91% This Year. Expect Higher Highs in 2024.

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    What a strange year 2023 was for Intel

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  • Apple can sell its latest smartwatches again after court pauses FTC import ban

    Apple can sell its latest smartwatches again after court pauses FTC import ban

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    The latest Apple Watches are available again after the company scored a legal victory Wednesday.

    “We are thrilled to return the full Apple Watch lineup to customers in time for the new year,” Apple
    AAPL,
    +0.05%

    said in a statement to MarketWatch. “Apple Watch Series 9 and Apple Watch Ultra 2, including the blood-oxygen feature, will become available for purchase again in the United States at Apple Stores starting today and from apple.com tomorrow by 3 p.m. ET.”

    A U.S. appeals court earlier Wednesday temporarily blocked a government commission’s import ban on popular Apple Watch models following a patent dispute with medical-technology firm Masimo Corp.
    MASI,
    -4.57%
    .

    The court’s order allows Apple to temporarily resume selling the Apple Watch Series 9 and Apple Watch Ultra 2. Both watches were pulled from Apple’s website last week and off store shelves this week when the ban went into effect. The appeals court is weighing a longer halt on the import and sales ban.

    Masimo declined to comment.

    On Tuesday, the tech giant filed an emergency request for the U.S. Court of Appeals for the Federal Circuit to halt the ban at least until U.S. Customs and Border Protection decides whether redesigned versions of its watches infringe Masimo’s patents.

    The appeals court’s decision will allow the U.S. Customs department to consider Apple’s redesign of the offending Apple Watch models. A fix is expected by Jan. 12. Apple said in the motion Tuesday it could “suffer irreparable harm” if the ban is kept in place while the appeal is ongoing.

    Shares of Apple were flat in trading Wednesday.

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  • Intel, Tesla, Apple, Iovance, NetEase, Coherus BioSciences, and More Stock Market Movers

    Intel, Tesla, Apple, Iovance, NetEase, Coherus BioSciences, and More Stock Market Movers

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    Stock futures traded slightly lower Wednesday after the S&P 500 finished higher Tuesday and just 0.45% below its record close of 4,796.56 hit Jan. 3, 2022. The broad market index has risen 24% this year and has gained 4.5% this month as traders bet the Federal Reserve will begin cutting interest rates as soon as March.

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  • Why Alphabet Could Be the Best Bet Among Magnificent 7 Stocks in the New Year

    Why Alphabet Could Be the Best Bet Among Magnificent 7 Stocks in the New Year

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    Alphabet could be the best bet among the Magnificent Seven stocks that led the market higher in 2023.

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  • Synopsys and Ansys in talks to merge: report

    Synopsys and Ansys in talks to merge: report

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    Shares of Ansys Inc. soared 18% in trading Friday on reports the company is in discussions to be acquired by Synopsys Inc. in a deal that would create a design-software behemoth.

    The potential deal would kick off 2024 with a mega-merger, even as the Federal Trade Commission attempts to crack down on such transactions. Talks remain fluid and a third party might still emerge as a possible suitor of Ansys, according to a Wall Street Journal report, which cited people familiar with the situation.

    Ansys
    ANSS,
    +18.08%
    ,
    which has a market value of nearly $26.3 billion, makes software that helps predict how products in aerospace, healthcare and automotive applications will work in the real world. A deal could be struck early in 2024, according to people familiar with the matter. Ansys reported revenue of $2.1 billion in 2022.

    Synopsys
    SNPS,
    -6.34%
    ,
    with a market value of $85.1 billion, makes software that engineers use to design and test silicon chips used in smartphones, self-driving cars and other forms of artificial intelligence. Its stock has climbed 65% this year as investors have hopped on the AI bandwagon boom. Shares of Synopsys dipped 6% in late trading Friday.

    Synopsys’s customers include Nvidia Corp.
    NVDA,
    -0.33%
    ,
    Intel Corp.
    INTC,
    +1.95%

    and Advanced Micro Devices Inc.
    AMD,
    -0.22%
    .

    Representatives from Synopsys and Ansys were not immediately available for comment.

    Should the companies strike a merger, it would offer a fresh test for the FTC and its chair, Lina Khan, who have opposed large tech mergers and acquisitions. The agency unsuccessfully sued Facebook parent Meta Platforms Inc.
    META,
    -0.20%

    in its pursuit of VR developer Within, as well as Microsoft Corp.’s
    MSFT,
    +0.28%

    $69 billion purchase of Activision Blizzard Inc.

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  • Broadcom now ranks among 10 largest U.S. companies after big 2023 stock gains

    Broadcom now ranks among 10 largest U.S. companies after big 2023 stock gains

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    Nvidia Corp. has catapulted up the list of the most valuable U.S. companies this year, rising eight spots from the end of last year to sit in the fifth position with a market capitalization of $1.2 trillion.

    But other chip companies have seen their positions rise even more. Just look at Broadcom Inc.
    AVGO,
    +2.10%
    ,
    which has climbed 16 spots over the course of 2023 and on Friday cracked the top 10 for the first time, according to Dow Jones Market Data. Broadcom eclipsed Visa Inc.
    V,
    -0.27%

    at Friday’s close to take the No. 10 spot, with a valuation of $527.7 billion.

    Read: Could Nvidia’s stock — up 231% this year — actually be a bargain?

    Admittedly, Broadcom had some help along the way. The company acquired VMware in late November, and its market capitalization gained about $50 billion at the close of the transaction, according to FactSet data.

    But Broadcom’s ascent also reflects how chip stocks have gotten more shine this year amid the artificial-intelligence frenzy. Broadcom’s stock has doubled so far in 2023.

    Mizuho desk-based analyst Jordan Klein expects “an order acceleration in networking silicon for AI clusters” in the second half of 2024, as calendar year 2025 could bring a big year of capital-expenditure investments in AI for ethernet back-end high-speed connections.

    Broadcom “is the KEY WINNER in that investment cycle as the arms dealer to all networking OEMs,” or original equipment manufacturers, wrote Klein, who’s associated with Mizuho’s sales team and not its research arm.

    Advanced Micro Devices Inc.
    AMD,
    +0.83%

    has also seen a nice march up the charts, rising 48 spots so far in 2023 to rank 30th in terms of market cap. AMD was valued at $223.9 billion as of Friday’s close.

    “We view AMD as well-positioned to gain incremental share of the hugely profitable $100 billion-plus accelerator market while continuing to make progress in server [central processing units] against incumbent [Intel],” BofA Securities analyst Vivek Arya wrote in a recent upgrade.

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  • Apple Stock Looks Set to Break Through $200. 3 Reasons It Can.

    Apple Stock Looks Set to Break Through $200. 3 Reasons It Can.

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    Apple shares have set an all-time high and the stock is hovering just below $200. There are three reasons to think Apple can break through the barrier.

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  • Nokia Cuts Operating Margin Guidance Amid Challenging Market

    Nokia Cuts Operating Margin Guidance Amid Challenging Market

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    Updated Dec. 12, 2023 2:54 am ET

    Nokia cut its operating margin guidance, with market conditions in its mobile networks business remaining challenging due to falling operator spending and the Indian market normalizing after a period of rapid 5G roll-outs.

    The Finnish telecom equipment maker said Tuesday that it now targets a comparable operating margin target of at least 13% by 2026, from at least 14% previously.

    Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • Nokia Cuts Operating Margin Guidance Amid Challenging Market

    Nokia Cuts Operating Margin Guidance Amid Challenging Market

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    By Dominic Chopping

    Nokia cut its operating margin guidance as market conditions in its mobile networks business remain challenging, with operator spending falling and a normalization in India after a period of rapid 5G deployment.

    The Finnish telecom equipment maker said Tuesday that it now targets a comparable operating margin target of at least 13% by 2026, from at least 14% previously.

    “Nokia still sees a path to achieving the at least 14% comparable operating margin target but considering the current market conditions in mobile networks, this is deemed a prudent change,” the company said.

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

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  • Oracle Stock Falls After Earnings Report Disappoints

    Oracle Stock Falls After Earnings Report Disappoints

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    Oracle shares were heading sharply lower in late trading Monday after the enterprise software giant posted November quarter financial results that fell short of both the company’s own guidance and consensus Street estimates.

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  • AMD Stock Is More Expensive Than Nvidia. That Makes No Sense.

    AMD Stock Is More Expensive Than Nvidia. That Makes No Sense.

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    Advanced Micro Devices is on a roll this week, with its shares marching higher since the chip maker revealed ambitious plans to push into artificial intelligence. Investors looking to dive in best be warned: the stock now looks more expensive than Nvidia.

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  • MongoDB earnings clear Wall Street’s bar, but stock falls

    MongoDB earnings clear Wall Street’s bar, but stock falls

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    MongoDB Inc. easily cleared expectations with its latest results and outlook, but shares of the database company were declining 5% in Tuesday’s extended session.

    The database-management company posted a fiscal third-quarter net loss of $29.3 million, or 41 cents a share, compared with a net loss of $84.9 million, or $1.23 a share, in the year-prior quarter. On an adjusted basis, MongoDB
    MDB,
    +2.52%

    posted earnings per share of 96 cents, while analysts were expecting 51 cents a share.

    MongoDB’s revenue came in at $433 million, up 30% from a year before, while the FactSet consensus was for $406 million.

    “MongoDB has clearly established itself as an indispensable part of the tech stack of any organization focused on building durable competitive differentiation through software development,” Chief Executive Dev Ittycheria said in a release. He noted that the company was having success “in winning new workloads from both new and existing customers across verticals, geographies and customer segments.”

    For the fiscal fourth quarter, MongoDB anticipates $429 million to $433 million in revenue, along with 44 cents to 46 cents in adjusted EPS. The FactSet consensus was for $418 million in revenue and 37 cents in adjusted EPS.

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  • Why Sam Altman is a no-brainer for Time’s ‘Person of the Year’

    Why Sam Altman is a no-brainer for Time’s ‘Person of the Year’

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    Nothing has changed our lives more this year than the advances made in artificial intelligence — and they have the potential to alter our lives in even more dramatic ways down the road.

    So it’s a no-brainer that Sam Altman, co-founder and recently returned chief executive of the once-little-known OpenAI, should be named “Person of the Year” by Time Magazine when the selection is announced Wednesday.

    Altman has already cracked Time’s shortlist, joining candidates from varied backgrounds, including world leaders like Xi Jinping and entertainment phenomenon Taylor Swift. The selection ultimately comes down to an “individual or group who most shaped the previous 12 months, for better or for worse.”

    But Time has often given “agents of change” its yearly honor — just look at 2021 winner Elon Musk — and Altman certainly fits that bill.

    No other innovation in the past year has had an impact in such disparate realms. OpenAI publicly launched its ChatGPT chatbot late last year, and as the technology grew viral in 2023, it upended the stock market, Silicon Valley and companies that wouldn’t normally be classified as technology businesses. The ensuing product development and surge in generative AI investment revitalized a tech industry that had sunk into the doldrums amid a pandemic hangover.

    Admittedly, it will take time for companies to realize the true financial benefits of AI: Nvidia Corp.
    NVDA,
    -2.68%

    is among the few to generate serious money from the frenzy so far. But market researcher IDC predicted that global spending on AI, including software, hardware and services for AI-centric systems will reach $154 billion this year, up 27% from a year ago. That total could zoom above $300 billion by 2026.

    Also read: One year after its launch, ChatGPT has succeeded in igniting a new era in tech

    And AI isn’t only impacting the corporate world. The technology is already affecting our daily lives, and it will have even deeper effects going forward. Chatbots are getting smarter on websites, facilitating better customer service. They’re starting to alter the workplace as well, spitting out mostly coherent marketing copy, research and even, gasp, news articles — albeit with plenty of errors.

    At first, ChatGPT seemed like a fun way to kill time or get homework help, but the chatbot and its ilk will seriously alter the working world, helping to eliminate perhaps millions of jobs. Morgan Stanley recently predicted that more than 40% of occupations will be affected by generative AI in the next three years.

    Altman himself has been the face of OpenAI in the past year. He’s talked up the technology, but he also appeared at congressional hearings in May to discuss potential regulation of AI, testifying that “if this technology goes wrong, it can go quite wrong.” His recent firing and quick rehiring by OpenAI and its small, nonprofit board late last month fueled a veritable media storm before the Thanksgiving holiday in the U.S.

    Time chooses its persons of the year for their impact, not because they’re saints. And Altman’s own story is not without controversy. The recent brouhaha over his leadership of OpenAI is believed to have been caused by a deep schism over the ethics of AI development. The board seemingly wanted more guardrails and precautions, and feared that rushed development could irrevocably doom mankind.

    Read in the Wall Street Journal: How effective altruism split Silicon Valley and fueled the blowup at OpenAI

    Altman, who also wooed Microsoft Corp.
    MSFT,
    -1.43%

    to become an investor in OpenAI, emerged the victor in the upheaval with his own company’s altruistic board. Had Altman truly been fired from OpenAI, Microsoft was planning to hire him, and nearly every employee at OpenAI was ready to quit and follow him there. While OpenAI faces plenty of competition, including from Alphabet Inc.’s
    GOOG,
    -2.02%

    GOOGL,
    -1.96%

    Google, Altman should continue to be the face of AI development, for good and for bad, even as he has advocated industry regulation.

    The debut and influence of ChatGPT and follow-on AI products are having the biggest impact on tech development since the invention of the iPhone. Altman is at the center of it and leading the charge. Whether he can keep the lid on Pandora’s Box or not depends on many factors, but he and the company he leads are clearly driving a new tech movement that affects us all, whether we like it or not.

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  • UiPath’s stock soars after profit, revenue and ARR rise above forecasts

    UiPath’s stock soars after profit, revenue and ARR rise above forecasts

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    Shares of UiPath Inc. soared late Thursday after the automation-software company reported fiscal-third-quarter earnings and revenue that rose above expectations, amid strength in the licenses and subscription-services businesses.

    The stock
    PATH,
    -0.55%

    shot up 11% in after-hours trading, putting it on a path to trade at the highest closing levels seen since April 2022.

    Net losses for the quarter to Oct. 31 narrowed to $31.5 million, or 6 cents a share, from $57.7 million, or 10 cents a share, in the same period a year ago. Excluding nonrecurring items, such as stock-based compensation expenses, adjusted earnings per share rose to 12 cents from 5 cents to beat the FactSet consensus of 7 cents.

    Total revenue grew 24% to $325.9 million, above the FactSet consensus of $315.6 million.

    Licenses revenue jumped 25.3% to $148.1 million, well above the FactSet consensus of $137.5 million, and subscription-services revenue climbed 28.7% to $167.5 million to top expectations of $166.9 million. Meanwhile, professional services and other revenue dropped 28.4% to $10.3 million, to miss forecasts of $11.2 million.

    Annual recurring revenue increased 24% to $1.38 billion, above the FactSet consensus of $1.36 billion.

    For the fourth quarter, the company expects revenue of $381 million to $386 million, which surrounds the FactSet consensus of $383 million.

    The stock, which fell 0.6% during Thursday’s regular session after closing the previous session at a 15-month high, has run up 26.6% over the past three months, while the SPDR S&P Software & Services ETF
    XSW,
    -0.60%

    has tacked on 1.3% and the S&P 500
    SPX,
    +0.38%

    has edged up 1.2%.

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  • Snowflake Shares Gain on Strong Earnings

    Snowflake Shares Gain on Strong Earnings

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    Snowflake shares were gaining ground Wednesday after the cloud data warehouse software company posted better-than-expected results for the quarter ended Oct. 31.

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