Tag: Consumer electronics

Google unveils Pixel 8 built for ‘the generative AI era’ | CNN Business

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CNN
—

There’s nothing particularly new about Google’s latest-generation Pixel 8 smartphone hardware. That’s why the company is pushing hard to tout its AI-powered new software, which Google says was built specifically for the “first phone of the generative AI era.”

At a press event in New York City, Google

(GOOG) showed off the new Pixel 8 and Pixel 8 Pro devices, which largely look the same as the year prior, albeit with more rounded edges. But inside, its new G3 Tensor chip unlocks an AI-powered world aimed at simplifying your life, from asking the device to summarize news articles and websites to using Google

(GOOG) Assistant to field phone calls and tweaking photos to move or resize objects.

The 6.3-inch Pixel 8 and the 6.7-inch Pixel 8 Pro comes with a brighter display, new camera system and longer-lasting battery life. The Pixel 8 is available in three colors – hazel, rose and obsidian – and starts at $699, about $100 less than the baseline iPhone 14 with the same amount of storage. (That’s about $100 more than last year’s Pixel 7).

Meanwhile, the Pixel 8 Pro – which touts a polished aluminum frame and a matte back glass this year – now has the ability to take better low-light photos and sharper selfies. It starts at $999 – the same price as the iPhone 15 Pro – and is available in three colors: bay, porcelain and obsidian.

Although these upgrades are mostly incremental, the AI enhancements and related features may appeal to tech enthusiasts who want the latest version of Android and an alternative to Apple or Samsung smartphones.

At the same time, Google’s Pixel line remains a niche product. Its global market share for smartphones remains about 1%, according to data from ABI Research. Google also limits sales to only a handful of countries, so keeping the volume low has been strategic as Google remains predominantly a software company with many partners running Android.

Reece Hayden, an analyst at ABI Research, said Google is looking to establish itself as an early market leader amid the “generative AI-related hysteria,” which kicked into high gear late last year with the introduction of ChatGPT. Generative AI refers to a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

“[Adding it to the Pixel] creates further product differentiation by leveraging internal capabilities that Apple may not have,” said Hayden.

He expects this announcement to be the first of many similar efforts coming to hardware over the next year, especially among brands who’ve already made investments in this area.

Here’s a closer look at what Google announced and some of the standout new AI features:

Google showed off a handful of photo features coming to its Pixel line, including Magic Editor which uses generative AI to reposition and resize a subject. Similarly, a new Audio Magic Eraser tool that lets users erase distracting sounds from videos.

Another tool called Best Take snaps a series of photos and then aggregates the faces into one shot so everyone looks their best. And a a new Zoom enhanced feature lets users pinch to zoom in about 30 times after a photo is taken to focus in on and edit a specific area.

The company said these efforts aim to “let you capture every moment just how you want to remember it.”

Although the tools intend to give users more control over their photos, some analysts like Thomas Husson at market research firm Forrester believe it will be harder to distinguish between what’s real and what’s not.

“The fact that Google refers to a ‘Magic Eraser’ will blur the distinction between real photos and heavily edited ones,” Husson said. But he warns an uptick in deepfake apps already makes it hard to decipher the authenticity of some shots. “You don’t really need Google AI for that.”

The company said Google Assistant will now sound more realistic when it engages with callers. Google’s screen call tool already lets Assistant field incoming calls, speak to callers and determine who’s on the line before pushing it through to the user. But its robotic voice will sound increasing more natural, the company said.

Google is also bringing the capabilities of its Bard AI chatbot to Google Assistant, so it will be able to do more than set an alarm or tell the weather. With its new generative AI capabilities, it will be able to review important emails in a user’s inbox or reveal more about a hotel that popped up on their Instagram feed. Assistant will also be able to understand user questions in voice, text and images.

“With generative AI on the scene, it’s really creating a lot of new opportunities to build an even more intuitive and intelligent and personalized digital assistant,” Sissie Hsiao, general manager for Google Assistant and Bard, told CNN.

In addition to making Assistant more useful, the tool will make it easier for more users to interact with Google’s six-month-old Bard on interfaces they may already frequently engage with. Last month, Google rolled out a major expansion of Bard, allowing users to link the tool to their Gmail and other Google Workspace tools and making it easier to fact check the AI’s responses.

Google launched Assistant with Bard to a small test group on Wednesday, and it will be more widely available to Android and iOS users in the coming months.

AI is also getting smarter on the Pixel Watch 2 ($349), its second-generation smartwatch. Users can use Bard capabilities via an upgraded Google Assistant watch app to ask it how they slept and get other health insights.

In addition, the Pixel 2 features a new heart rate sensor, which works alongside a new AI-driven heart rate algorithm, to provide a more accurate heart rate reading than before. But Hayden said he doesn’t think more AI will add too much more to its existing value proposition.

“Smart watches already include a fair amount of AI, and Pixel is no different,” he said.

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August 2, 2023
Apple to issue iPhone 12 update in France after sales halted over radiation levels | CNN Business

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Paris
CNN
—

Apple plans to update iPhone12 software for users in France after the country’s regulators ordered a pause on sales of the 2020 model over radiation concerns.

“We will issue a software update for users in France to accommodate the protocol used by French regulators. We look forward to iPhone 12 continuing to be available in France,” an Apple (AAPL) spokesperson told CNN Friday.

France’s National Frequency Agency, the ANFR, ordered Tuesday an immediate withdrawal of the iPhone 12 from the French market, saying it exceeded European radiation exposure limits. The ANFR also ruled that for iPhone 12s already in use, Apple must adopt “all necessary corrective measures to bring the telephones into conformity as soon as possible” or it would have to recall the devices.

Apple told CNN Friday that the suspension of sales was related “to a specific testing protocol used by French regulators and not a safety concern.”

“Since it was introduced in 2020, iPhone 12 has been certified and recognized as meeting or exceeding all applicable SAR regulations and standards around the world,” Apple said.

SAR is a measure of the rate of energy absorption by the body from the source being measured, according to the French regulator. But experts and regulators generally say not to worry.

“After discussions and as requested by the ANFR, Apple has assured me that it will be rolling out an update for the iPhone 12 in the next few days,” France’s minister for the digital economy Jean-Noel Barrot posted on X, formerly known as Twitter, Friday.

The French regulator is preparing to rapidly test this update, “which will eventually bring the model in line with the European standards applied in France” and subsequently allow Apple to resume sales, he added.

The sales suspension came on the same day Apple unveiled the iPhone 15 and the iPhone 15 Pro, its newest iterations of the iconic product, at its annual keynote event in California.

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August 2, 2023
Why cell phone service is down in Maui — and when it could be restored | CNN Business

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CNN
—

Thousands of people in Maui are without cell service as the wildfires continue to rage out of control on the island, preventing people from calling emergency services or updating loved ones about their status. It could take days or even weeks to get the networks back up and running.

“911 is down. Cell service is down. Phone service is down,” Hawaii Lt. Gov. Sylvia Luke told CNN on Wednesday morning.

Although strong winds can sometimes threaten cell towers, most are strong enough to handle the worst that even a Category 5 hurricane can bring. Fire, however, complicates the issue.

“When the fires get too close to cell sites, they will obviously burn equipment, antennas, and feedlines,” said Glenn O’Donnell, VP of research at market research firm Forrester. “In extreme cases, they will also weaken the towers, leading some to collapse. The smoke and flames can also attenuate signals because of the particulate density in the air.”

If a tower collapses, cell networks could take months to restore. But if carriers are able and prepared to do restorations with mobile backup units, it could bring limited service back within hours, O’Donnell said. Wireless carriers often bring in COWs (Cells On Wheels), COLTs (Cells On Light Trucks), and GOaTs (Generators on Trailers) in emergencies to provide backup service when cell towers go down.

Power outages are also a threat to cell phone towers. The Maui disaster has already wiped out power to at least 14,000 homes and businesses in the area, according to PowerOutage.us. Many towers have backup power generators, but they have limited capacity to keep towers running.

Cell towers have back-up technology built in, but this is typically done through optical fiber cables or microwave (wireless) links, according to Dimitris Mavrakis, senior researcher at ABI Research. However, if something extraordinary happens, such as interaction with rampant fires, these links may experience “catastrophic failures and leave cells without a connection to the rest of the world.”

And, in an emergency, a spike in call volume can overload the system – even if people are able to get reception.

“Even cells that have a good service may experience outages due to the sheer volume of communication happening at once,” Mavrakis said. “Everyone in these areas may be trying to contact relatives or the authorities at once, saturating the network and causing an outage. This is easier to correct though and network operators may put in place additional measures to render them operational quickly.”

A T-Mobile spokesperson said the company is monitoring the situation and assessing the fire’s impact on its equipment in the area.

“When conditions are safe, our Emergency Management Team will deploy portable, agile satellite and microwave solutions that will restore service in impacted areas,” the spokesperson said. “We also have portable generators ready to deploy to sites affected by commercial power loss, and our Emergency Response Team is working with FEMA and the state of Hawaii to support firefighters and other first responders, organizations and communities.”

An AT&T spokesperson told CNN it is also assessing the’ impact to its wireless network and “will continue to coordinate closely with local utility companies on restoration progress.” The company is waiving talk, text and data overage charges during this time.

Verizon did not immediately respond to CNN’s request for comment.

Satellite networks, however, continue to operate regardless of what’s happening on the ground. This means satellite phones, which often feature large antennas, can help provide voice, SMS, and data services anywhere on Earth, even without cell service.

Satellite phones have been popularized over the years by hikers, emergency responders and intrepid travelers, but they are are expensive and are not mainstream products. However, some newer smartphone models – including the latest model iPhone 14 and some phones built by Motorola and Huawei – offer built-in satellite connectivity, which allows the sending of SOS messages via satellites.

For example, Apple’s free Emergency SOS via satellite service, which launched last year, allows iPhone users to contact dedicated dispatchers in emergency situations via satellites. When a user attempts to call 911 and is unable to get on a cell network, they will be automatically redirected to the service’s dispatchers where they can answer a questionnaire with short multiple choice questions to share information quickly. The dispatchers also receive their coordinates, medical ID and emergency contact information.

Apple told CNN the feature is reserved for connections to emergency services and does not allow users to contact friends and family. For anyone who has access to a Wi-Fi connection while wearing an Apple Watch, the Walkie-Talkie feature could also be used to send messages or make calls. However, Wi-Fi networks can also fail when optical fiber networks are disrupted.

Although it’s unclear how long cell phone service could be down in affected regions, companies have been able to bring connectivity to disaster regions in the past. In 2017, Google worked with AT&T and T-Mobile to deploy its Project Loon balloons to deliver Internet to Puerto Rico in the aftermath of Hurricane Maria.

Hawaii’s Red Cross recently tweeted that people can call 1-800-RED-CROSS to see if their loved ones are at a local shelter.

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August 2, 2023
France orders Apple to pull iPhone 12 off shelves for high radiation levels | CNN Business

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CNN
—

Apple is fighting France’s claims that the iPhone 12 surpasses European radiation exposure limits after French regulators on Tuesday ordered a pause on sales and a fix to phones already sold to customers.

France’s National Frequency Agency said it “has demanded that Apple withdraw the iPhone 12 from the French market, effective 12 September 2023, as measures show the specific absorption rate exceeds the set limits.” The agency said the iPhone 12 is not compliant with European Union regulations.

“Apple must immediately adopt all necessary measures to prevent the iPhone 12 in the supply chain from being made available on the market,” ANFR added.

Disputing the agency’s claims, Apple said it had already given the agency multiple lab results conducted by the company and independent third parties that showed the device’s compliance with relevant SAR regulations and global standards.

The company said it was contesting the AFNR’s review results and would continue to work with the agency to demonstrate the phone’s compliance.

SAR is a measure of the rate of energy absorption by the body from the source being measured, according to the ANFR. But experts and regulators generally say not to worry.

“To date, and after much research performed, no adverse health effect has been causally linked with exposure to wireless technologies,” according to the World Health Organization. “Provided that the overall exposure remains below international guidelines, no consequences for public health are anticipated.”

ANFR ruled that for iPhone 12s already in use, Apple “must adopt all necessary corrective measures to bring the telephones into conformity as soon as possible, otherwise, Apple will have to recall the equipment.”

The measure was effective from Tuesday, with the regulator adding it would ensure the product is no longer offered for sale in all distribution channels in France from that day.

France’s Minister for the Digital Economy Jean-Noel Barrot confirmed in a tweet that iPhone 12 sales are “halted in France until Apple offers an update for all affected devices.”

“The @anfr found that the iPhone 12 was emitting a level of waves slightly higher than the authorized threshold,” Barrot wrote in another tweet, translated from French. “This level is more than 10 times lower than the level at which there could be a health risk.”

The announcement came as Apple unveiled the iPhone 15 and iPhone 15 Pro, Apple’s newest iteration of its iconic product, at its annual keynote event in California on Tuesday.

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August 2, 2023
Amazon and Apple to headline Q2 earnings this week

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When Amazon.com Inc. and Apple Inc. report quarterly results on Thursday, we’ll get a look at two big companies, with big expectations, trying to do smaller things — or at least less exciting things, or things that might be more inconveniencing to customers — to stay bigger.

For Apple
AAPL,
+1.35%,
D.A. Davidson analyst Tom Forte said, the focus will be on the iPhone, as always, as well as demand abroad and a new VR headset, as its stock hovers near record highs and its market value holds above $3 trillion. And he said that Amazon
AMZN,
+3.09%,
meanwhile, could face questions about the impact of cost cuts on e-commerce growth, and what AI could do to boost slower growth in its cloud business.

The results from those companies, which are big enough to make or break a single quarter’s worth for the S&P 500 Index
SPX,
+0.99%,
will follow those from the other tech giants like Microsoft Corp.
MSFT,
+2.31%
and Facebook parent Meta Platforms Inc.
META,
+4.42%.
And they’ll arrive as Wall Street starts to get a tad more realistic about AI: Microsoft shares fell after management said the expansion of its AI capabilities would be “gradual” — and gradually more expensive.

D.A. Davidson analyst Tom Forte, in a research note this month, said Amazon, like other big tech companies, was taking more steps to control its costs. That might help margins, he said. But he said he’d be watching for any impact to e-commerce sales growth, following thousands of layoffs and pulling back on its expansion of Amazon Fresh.

Amazon began tacking on servicing fees onto some Amazon Fresh delivery orders this year. And Forte noted what he said were other tweaks to service: Charging for a home pickup of a defective smoke alarm that used to be free, and incentives to wait longer during Prime Day.

“In our view, Amazon is playing a ‘game of chicken’ and banking on other e-commerce companies not to offer a superior service, instead of its historical approach of working backwards with a customer-obsessed approach,” D.A. Davidson analyst Tom Forte said in a research note.

He added later: “We believe there is something to be said about the experience of having an Amazon-branded delivery vehicle show up at your house EVERY day. Having one show up once a week or twice is not the same.”

At Apple, Forte said in a separate note, the iPhone, whose sales were still solid, had turned into more of a consumer staple than a discretionary buy. He also said he’d be looking for more detail about the upcoming iPhone 15 — likely to be modestly fancier than previous iPhones — the recovery in China and growth in India. Apple last month also unveiled its Vision Pro VR headset — for $3,499. Forte said he had his doubts.

“We believe Apple will have to overcome a number of structural challenges to achieve mass adoption for its AR/VR headset,” he said.

This week in earnings

Apple and Amazon will report as more companies than normal report quarterly profit ahead of estimates, according to a FactSet report on Friday. For the week ahead, 170 S&P 500 companies report results, with four from the Dow, the repot said.

Results from Uber Technologies Inc.
UBER,
+3.28%
and DoorDash Inc.
DASH,
+4.20%
will offer an update on the gig economy and how far app-based deliveries can go, while results from Kraft Heinz Inc.
KHC,
-0.11%
will offer an update on food prices and how much they might ease from the highs seen in recent months.

With the “Barbie” movie lifting rival Mattel Inc.
MAT,
-2.40%,
results from Hasbro Inc
HAS,
-0.29%
during the week will offer a glance at the rest of the toy industry, where demand hasn’t exactly been great, and what entertainment options Hasbro has up its sleeve to keep apace with its archrival. Drug maker Pfizer Inc.
PFE,
-0.36%
reports, as does video-game maker Electronic Arts Inc.
EA,
+0.25%.
Starbucks Corp.
SBUX,
+0.47%
reports as well.

The call to put on your calendar

“Barbie,” the Hollywood strike and Warner Bros. Discovery: Mattel has said it wants to turn “Barbie” into a content franchise. Now we’ll hear what Warner Bros. Discovery Inc.
WBD,
+4.07%,
the media conglomerate that produced the film, thinks about the film’s results and its prospects, as studios increasingly pump out sequels or offshoots of well-known, established character universes like “Star Wars,” Marvel and DC. The company — which reports oversees Warner Bros. CNN, TNT and the streaming service Max — reports quarterly results on Thursday. But even as “Barbie” and “Oppenheimer” carry the parts of the entertainment industry that are still functioning through the Hollywood strike, Wall Street will likely be focused on contingency plans, and any sense of whether more viewers are turning to streaming with productions on pause.

The number to watch

Payments and crypto volumes: Results this week from trading app Robinhood Markets Inc.
HOOD,
+4.09%
and crypto exchange Coinbase Global Inc.
COIN,
+2.23%,
along with PayPal Holdings Inc.
PYPL,
+2.71%
and Block
SQ,
+3.42%,
will land at the intersection of rebounding markets and job-market concerns.

UBS analysts predicted solid growth and cost control for Block, and “steady” e-commerce trends for PayPal. But BofA analysts said PayPal’s search for a new chief executive, following the announcement of Dan Schulman’s retirement at the end of the year, would become more important, adding that “we think investors should rightfully expect the CEO search to conclude in the near-term.” While Bitcoin’s rebound helped Coinbase, the company and others in the industry face the prospect of tougher regulations. Robinhood and PayPal report on Wednesday. Coinbase and Block report on Thursday.

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July 30, 2023
Palantir Stock Spikes After Analyst Says to Buy ‘The Messi of AI’

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Palantir Technologies

shares were getting a major boost Friday after Wedbush technology analyst Dan Ives launched coverage of the AI software company with an Outperform rating, setting a target price of $25. Ives contends Palantir is well-positioned to take market share in both the commercial and government analytics software markets.

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July 28, 2023

Banc of California is expected to keep leading regional banks higher as PacWest deal ignites sector

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Banc of California Inc.’s proposed agreement to acquire PacWest Bancorp. helped send regional-bank stocks considerably higher on Wednesday. But even after a two-day increase of 12% for its shares, the acquiring bank remains the favorite name among analysts covering regional players in the U.S.

The merger agreement was announced after the market close on Tuesday, but the rumor mill had already sent Banc of California’s
BANC,
+0.62%
stock up by 11% that day. Then on Wednesday, shares of PacWest Bancorp
PACW,
+26.92%
shot up 27% to $9.76, which was above the estimated takeout value of $9.60 a share when the deal was announced. The merger deal, if approved by both banks’ shareholders, will also include a $400 million investment from Warburg Pincus LLC and Centerbridge Partners L.P.

A screen of regional banks by rating and stock-price target is below.

Deal coverage:

With PacWest closing above the initial per-share deal valuation, it is fair to wonder whether or not its shareholders will vote to approve the agreement. In a note to clients on Wednesday, Wedbush analyst David Chiaverini called Banc of California’s offer “fair, but not overwhelmingly attractive,” and wrote that PacWest was “a likely seller before the mini banking crisis occurred in March.”

While Chiaverini went on to predict the deal’s approval by PacWest’s shareholders, he added that he “wouldn’t be surprised if there were some dissent among a minority of shareholders [which could] possibly open the door to the potential emergence of a third-party bid.”

More broadly, Odeon Capital analyst Dick Bove wrote to clients on Wednesday that the merger deal, along with increasing involvement of private-equity firms in lending businesses, the expected enhancement of regulatory capital requirements for banks and other factors could lead to more consolidation among smaller banks.

He went on to write that we might be entering a period for the banking industry similar to the 1990s, “when rules were being changed and acquisitions were rampant,” which “created new investment opportunities.”

The SPDR S&P Regional Banking exchange-traded fund
KRE,
+4.74%
rose 5% on Wednesday but was still down 17% for 2023, while the SPDR S&P 500 ETF Trust
SPY,
+0.02%
was up 19%, both excluding dividends.

KRE holds 139 stocks, with 98 covered by at least five analysts working for brokerage firms polled by FactSet. Out of those 98 banks, 45 have majority “buy” ratings among the analysts. Among those 45, here are the 10 with the most upside potential over the next 12 months, implied by consensus price targets:

Bank	Ticker	City	Total assets ($mil)	July 26 price change	Share buy ratings	July 26 closing price	Consensus price target	Implied 12-month upside potential
Banc of California Inc.	BANC, +0.62%	Santa Ana, Calif.	$9,370	1%	71%	$14.71	$18.58	26%
Enterprise Financial Services Corp.	EFSC, +1.83%	Clayton, Mo.	$13,871	2%	80%	$41.75	$49.25	18%
First Merchants Corp.	FRME, +3.52%	Muncie, Ind.	$17,968	4%	100%	$32.38	$37.33	15%
Amerant Bancorp Inc. Class A	AMTB, +3.47%	Coral Gables, Fla.	$9,520	3%	60%	$20.26	$23.30	15%
Old Second Bancorp Inc.	OSBC, +3.39%	Aurora, Ill.	$5,884	3%	100%	$16.15	$18.50	15%
F.N.B. Corp.	FNB, +2.87%	Pittsburgh	$44,778	3%	75%	$12.91	$14.50	12%
Columbia Banking System Inc.	COLB, +3.95%	Tacoma, Wash.	$53,592	4%	55%	$22.63	$25.32	12%
Wintrust Financial Corp.	WTFC, +3.43%	Rosemont, Ill.	$54,286	3%	92%	$86.05	$95.33	11%
Synovus Financial Corp.	SNV, +6.01%	Columbus, Ga.	$60,656	6%	75%	$34.06	$37.73	11%
Home BancShares Inc.	HOMB, +4.56%	Conway, Ark.	$22,126	5%	57%	$24.09	$26.67	11%
Source: FactSet

Click on the tickers for more about each bank.

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

Any stock screen can only be a starting point when considering whether or not to invest. If you see any stocks of interest here, you should do your own research to form your own opinion.

Don’t miss: How you can profit in the stock market from an incredible financial-services trend over the next 20 years

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July 26, 2023

ServiceNow Posts Strong Earnings and Adds New AI Tools. But the Stock Is Lower.
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https://www.barrons.com/articles/servicenow-earnings-stock-price-ef3bea69
Technology

Earnings Report

Updated July 26, 2023 5:00 pm ET / Original July 26, 2023 4:13 pm ET

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ServiceNow

posted better-than-expected results for its latest quarter and lifted its full-year outlook.
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July 26, 2023
Alphabet earnings push stock up 6%; CFO Ruth Porat to become president, chief investment officer

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Google parent Alphabet Inc.’s stock jumped 6% in after-hours trading Tuesday after the company beat estimates on the top and bottom line, and announced the transition of Chief Financial Officer Ruth Porat to president and chief investment officer in September.

Fueled by strong advertising sales, Alphabet
GOOGL,
+0.56%

GOOG,
+0.75%
racked up fiscal second-quarter net income of $18.4 billion, or $1.44 a share, compared with net income of $16 billion, or $1.21 a share, in the same quarter a year ago.

Total revenue was $74.6 billion, compared with $69.7 billion a year ago. Sales minus traffic-acquisition costs were $62.06 billion, vs. $57.5 billion last year.

Analysts surveyed by FactSet had expected on average net earnings of $1.34 a share on revenue of $72.85 billion and ex-TAC revenue of $60.25 billion.

“There’s exciting momentum across our products and the company, which drove strong results this quarter,” Alphabet Chief Executive Sundar Pichai said in a statement. “Our continued leadership in AI and our excellence in engineering
and innovation are driving the next evolution of Search, and improving all our services.”

During a conference call Tuesday afternoon, he highlighted the intertwining of advertising and Alphabet’s strides in generative AI. He added the company continues to consolidate and align operations to streamline spending.

Shares of Alphabet have advanced 39% so far this year largely on the strength of generative AI and its potential. The broader S&P 500 index
SPX,
+0.28%
is up 19%. Alphabet’s stock inched up 0.6% to $122.21 in the regular session Tuesday.

Google’s total advertising sales improved to $58.14 billion from $56.3 billion a year ago, and edged analysts’ average expectations of $57.45 billion. Google Cloud hauled in $8 billion, compared with $6.3 billion last year. YouTube ad sales rebounded to $7.7 billion from $7.34 billion a year ago.

“The proverbial floodgates aren’t opening yet but clients are starting to see pockets of opportunity and are willing to invest for a direct return,” Aaron Levy, vice president of paid search at Tinuiti, said in an email.

Porat, who has played an essential role in Google’s advertising success since she became CFO in 2015, will start her new role on Sept. 1. She will be responsible for Alphabet’s investments in its Other Bets portfolio, and the company’s investments in countries and communities around the world. Porat will continue to report to Pichai.

“We see technology can make so much of a difference in people’s lives… and in economic growth globally,” Porat said during the conference call late Tuesday.

The monetization of AI continues to be an obsession of investors and Wall Street. Microsoft Corp.’s
MSFT,
+1.70%
AI version, Bing, hit the market first, but Google’s competing entry, Bard, is making headway, according to analysts. Alphabet is ramping up AI initiatives to improve operational efficiency and productivity.

When asked on the call about AI monetization, Pichai said the technology expands the company’s total addressable market, brings in potential new customers, deepens the versatility of its product portfolio, and differentiates core products such as cybersecurity.

AI’s importance was underscored by a Wall Street Journal report on Tuesday that Google co-founder Sergey Brin has been spotted at the company’s Mountain View, Calif., headquarters in recent weeks working with AI researchers on a large-scale project. Brin has been largely out of sight after stepping down from an executive role at parent company Alphabet in 2019.

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July 25, 2023
Microsoft earnings top estimates, but stock falls as execs detail AI’s costs

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Microsoft Corp. easily topped profit and revenue expectations for its latest quarter, though its shares were moving more than 3% lower in extended trading Tuesday after the company discussed the year ahead.

The technology giant has won favor on Wall Street for its positioning in the artificial-intelligence revolution, though Chief Financial Officer Amy Hood said on Tuesday’s earnings call that “even with strong demand and a leadership position,” Microsoft’s
MSFT,
+1.70%
“growth from our AI services will be gradual.” Microsoft’s AI for its Azure cloud-computing business needs to ramp, and the company is working toward the general availability of its Copilot productivity product.

Microsoft’s AI revenue impacts will thus be weighted toward the second half of the new fiscal year that just began, she continued. Meanwhile, she expects that Microsoft’s capital expenditures will rise sequentially each quarter “as we scale to meet demand signals.”

Hood’s commentary came as Microsoft posted fiscal fourth-quarter results Tuesday afternoon that showed a 15% jump in revenue for the company’s cloud-computing segment, which it calls Intelligent Cloud. Revenue for the segment came in at $24.0 billion, while analysts had been anticipating $23.8 billion. The growth rate was 17% on a currency-neutral basis.

The company said revenue for Azure and other cloud services was up 26%, or 27% in constant currency. Microsoft’s forecast had been for 26% to 27% in constant-currency Azure sales growth, while the company posted 31% constant-currency growth on the metric in the March period. The FactSet consensus was for 27% growth in constant currency.

“While we believe the Street was hoping for Azure growth more in the ~28% range, we believe the consumption part of the business held up well,” Evercore ISI analyst Kirk Materne said in a note to clients.

For the September quarter, Microsoft anticipates 25% to 26% in constant-currency Azure growth.

The cloud migration is still in the “early innings,” Chief Executive Satya Nadella said on the call, while also highlighting a “new world of AI driving a set of new workloads.”

“We think of that, again, being pretty expansive from a TAM [total addressable market] opportunity and we’ll play it out,” he continued, though the company is also up against the “law of large numbers” given the massive scale of its cloud business.

The company generated fiscal fourth-quarter net income of $20.1 billion, or $2.69 a share, compared with $16.7 billion, or $2.23 a share, in the year-earlier period. Analysts tracked by FactSet were modeling $2.55 a share.

Overall revenue for Microsoft climbed to $56.2 billion from $51.9 billion, whereas analysts had been expecting $55.5 billion.

See also: Microsoft bulls are excited as company reveals pricing for AI offering

Microsoft logged $18.3 billion in revenue for its productivity and business processes unit, up 10% from a year before, or up 12% in constant currency. That part of the business includes LinkedIn and both commercial and consumer versions of Office. Analysts had been looking for $18.1 billion.

Revenue for the More Personal Computing segment, which includes Windows and Xbox content and services, dropped 4% to $13.9 billion and was off 3% on a constant-currency basis. The FactSet consensus was for $13.6 billion.

Nadella, meanwhile, expressed optimism about the eventual opportunities brought upon by Microsoft’s Copilot offerings.

“I do think people are going to look at how can they complement their [operating-expense] spend with essentially these Copilots in order to drive more efficiency and, quite frankly, even reduce the burden and drudgery of work on their OpEx and their people and so on,” he said.

Evercore’s Materne called the overall results “solid” amid “a lot of macro headwinds.” Microsoft’s investment story “gets stronger in [the second half of the calendar year] as some optical headwinds reverse and [comparisons] soften, and Microsoft’s position in the enterprise market continues to get stronger as customers look to consolidate spending,” he wrote.

Read: Amazon finally is nearing a bottom on this key measure, analyst says

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July 25, 2023
F5, Logitech, Cadence Design, GE, GM, Microsoft, Alphabet, and More Stock Market Movers
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https://www.barrons.com/articles/stock-market-movers-9cc9fac3
Updated July 25, 2023 5:37 am ET / Original July 25, 2023 4:55 am ET

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July 25, 2023
AMC, Chevron, Tesla, Domino’s, Microsoft, and More Stock Market Movers
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Summary

Summary

U.S

Europe

Asia

FX

Rates

Futures

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Crypto

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https://www.barrons.com/articles/stock-market-movers-2b3602a5

Updated July 24, 2023 5:23 am ET / Original July 24, 2023 4:47 am ET

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These Stocks Are Moving the Most Today: AMC, Chevron, Tesla, Domino’s, Microsoft, and More

Stock futures were up slightly Monday ahead of a week filled with interest-rate decisions from the Federal Reserve and European Central Bank, and earnings from more than 150 companies in the S&P 500, including tech giants Microsoft, Alphabet, Meta Platforms, and Amazon.

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July 24, 2023
With Microsoft, Meta and Alphabet earnings hanging on AI, more investors are asking: ‘How are you going to pay for that?’

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Shares of big tech companies have coasted through this year on AI euphoria, but as Microsoft Corp., Alphabet Inc. and Meta Platforms Inc. prepare to report results this week, some investors are starting to ask how much those AI advancements might actually cost.

Those questions have surfaced after several months during simply saying “AI” on earnings calls appeared to be enough for investors. If the economy sours though — as some expect in the second half of this year or next year — big tech’s AI ambitions could go with it.

“Given the exorbitant costs associated with the development, hosting and serving of AI products, many investors are concerned about the potential for [fiscal 2024] commentary regarding a material increase,” Jefferies analyst Brent Thill wrote, according to a MarketWatch earnings preview for Microsoft’s
MSFT,
-0.89%
results.

Microsoft and Alphabet Inc.
GOOGL,
+0.69%

GOOG,
+0.65%,
which both report on Tuesday, have been in heated competition in the world of online search and digital advertisements, as Microsoft leans more on its massive investments in research lab OpenAI to muscle up its own search capabilities. But a Deutsche Bank analyst said that so far, Google appears to have the upper hand in that battle.

Still, for Microsoft, after a broader pullback in IT spending earlier this year, analysts have found more to like about its cloud-computing business — namely market-share gains, generally-sturdy demand, and whatever ways AI can fit into the equation. Wolfe Research analyst Alex Zukin, in a recent note, said he believed “the focus will turn from what is good enough, to how good can it be,” as Microsoft moves deeper into AI.

“How good can it be?” might also be a question for Meta
META,
-2.73%,
which reports second-quarter results on Wednesday.

Shares of the social-media company have more than doubled in value so far this year. JMP analyst Andrew Boone, in a recent note, cited likely improvements in Meta’s digital ad segment, better engagement, and a broader advertising backdrop that “appears to be stable” after a slowdown in spending, Still, there are signs that the initial user attraction to Threads, Meta’s answer to Twitter, has fizzled.

This week in earnings

For the week ahead, 166 companies in the S&P 500 index report results, including 12 from the Dow, according to FactSet. Among them are Domino’s Pizza Inc.
DPZ,
-0.62%,
which now plans to deliver pizza via Uber Eats after years of chafing at third-party delivery apps. Industrials General Electric Co.
GE,
-0.82%
and 3M Co.
MMM,
+0.04%
also report, after 3M agreed to pay $10.3 billion to settle accusations it was responsible for so-called “forever chemicals” in drinking water.

Quick-service restaurant chains Chipotle Mexican Grill Inc.
CMG,
+0.20%
and McDonald’s Corp.
MCD,
-0.51%
also report, with BofA analysts expecting an “almost normal” quarter for the industry, after spending at chain restaurants grew last month and costs for some ingredients started to ease following two years of supply disruptions. Auto makers General Motors Co.
GM,
-1.81%
and Ford Motor Co.
F,
-0.71%
also report, and while parts shortages that have constrained vehicle production have shown signs of fading, so has electric-vehicle “euphoria.”

The calls to put on your calendar

Visa, Mastercard: Earlier this month executives from the big banks said U.S. consumers are generally doing OK despite still-rampant inflation, although perhaps less OK than in prior months. This week credit-card giants Visa Inc. and Mastercard Inc. report results on Tuesday and Thursday, respectively. The profit, sales and credit-card volume figures from Visa
V,
-0.15%
and Mastercard
MA,
-0.14%
will offer more specifics on consumer spending, as vacations and concerts compete with more expensive and more pressing needs, like groceries and other bills.

Shares of Visa and Mastercard are up so far this year, but some analysts said there could be more room investors to step in. SVB MoffettNathanson analyst Lisa Ellis recently said shares of both companies were hovering at “unusu a lly attractive” levels.

The number to watch

Mattel outlook, and anything ‘Barbie’-related: The “Barbie” movie hit theaters nationwide on Friday. And after an epic marketing campaign, Mattel Inc.’s investors, banking on the film to drive a rebound for the toy maker during the second half of this year, will be zeroed in on the box-office results following the film’s debut on Friday.

Expectations for the film are huge. And when Mattel
MAT,
-0.42%
reports second-quarter results on Wednesday, executives could offer the first answers to some big questions: Has the film helped revive toy sales? Sales for anything else? Will the “Barbenheimer” effect help or hurt financials?

The film — directed by Greta Gerwig, written Gerwig and Noah Baumbach, and starring Margot Robbie and Ryan Gosling — brings together two writers with indie bona fides and two actors with mainstream starpower. Reviews so far have been favorable, and Barbie is already Mattel’s most profitable franchise. But the movie isn’t directly geared toward children, movie theaters have struggled to get back on track after pandemic lockdowns, and toy demand through this year has been weak after ballooning during the pandemic. And some analysts don’t expect “Barbie” to do much for Mattel’s stock.

Emily Bary and Jon Swartz contributed reporting to this story.

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July 23, 2023

Electrolux Starts Preparations For Potential Divestment of Zanussi and Other Non-Core Brands During Coming Yrs

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By Dominic Chopping

STOCKHOLM–Electrolux on Thursday swung to an unexpected second-quarter net loss and said it is considering selling its Zanussi brand and other non-core assets during the coming years that together could raise around 10 billion Swedish kronor ($973.3 million).

The Swedish home-appliance manufacturer posted a second-quarter net loss of SEK648 million from a profit of SEK257 million as earnings were weighed by SEK643 million provision, significantly lower volumes due to weaker market demand, currency headwinds, labor cost and energy inflation.

A FactSet analyst poll had expected a net profit of SEK350 million.

Sales fell 3.2% to SEK32.65 billion, versus the SEK34.05 billion expected in a company-compiled consensus.

The weak demand environment, with lower consumer purchasing power resulting in more consumers shifting to lower price points, continued in the second quarter, it said.

Although price increases contributed somewhat positively in the quarter, earnings promotions also increased significantly and Electrolux now expects the net price effect to turn negative from the third quarter.

“In the challenging times we are now experiencing, it is vital to continue with strategic portfolio management,” Chief Executive Jonas Samuelson said.

“Further structural simplification and complexity reduction are thus being evaluated.”

Demand in 2023 is now expected to be negative in all regions.

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

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July 20, 2023

Biden administration announces new labels for gadgets that are less vulnerable to cyberattacks | CNN Business

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CNN
—

The next time you’re in the market for a smart TV, fitness tracker or other connected gadget, you could see a new US government-backed label identifying some products as being particularly hardened against hackers.

On Tuesday, the Biden administration announced it’s moving to implement a cybersecurity labeling program aimed at helping consumers pick out trustworthy tech products that are rated as more secure than the competition.

The program seeks to bolster the nation’s cybersecurity overall by guiding Americans who may be in the market for smart home tech or wearables toward products that meet a high standard for cybersecurity as defined by the National Institute of Standards and Technology (NIST).

The label will appear as a “distinct shield logo,” according to the White House. Products that meet the criteria for the label could include tech that requires strong passwords and that provides regular software updates to guard against the latest threats, for example.

A wide range of products could be covered, the administration said, including smart refrigerators, microwave ovens, thermostats, home voice assistants and — eventually — WiFi routers, after NIST finishes designing cybersecurity standards for them later this year.

For years, cybersecurity has been an afterthought in a market for so-called “internet of things” (IoT) devices that prioritizes low costs over security, according to security experts. One of the more famous examples of IoT security failures came in 2016, when criminal hackers used an army of infected computers, known as the Mirai botnet, to disrupt access to the websites of Twitter, PayPal, and others.

Products certified under the new program may come with a QR code that links to a national database affirming its participation, the administration added in a release.

The launch of the program could still be as far as a year away. But the administration took its first steps toward implementation on Tuesday as the Federal Communications Commission applied for a trademark linked to the effort, known as the “US Cyber Trust Mark.”

The FCC, which regulates wireless devices, also issued a formal proposal that will be open for public feedback on how it should manage the program.

“This new labeling program would help provide Americans with greater assurances about the cybersecurity of the products they use and rely on in their everyday lives,” the administration said in a statement. “It would also be beneficial for businesses, as it would help differentiate trustworthy products in the marketplace.”

The government proposal comes two years after President Joe Biden signed an executive order calling for an “‘energy star’ type of label” for tech products. At the time, the US government was still reeling from a crippling ransomware attack days earlier that had forced a temporary shutdown of Colonial Pipeline, one of the country’s largest fuel pipeline operators.

The executive order highlighted how the administration could use product labeling, combined with the federal government’s immense procurement power, to shape commercial markets and raise the bar for companies that sell technology to both US agencies and ordinary consumers.

Companies including Amazon, Best Buy, Cisco, Google, LG, Logitech, Samsung and others pledged to assist in the government’s labeling push by committing to increase the cybersecurity of their products, the White House said Tuesday.

Dave DeWalt, CEO of the cybersecurity-focused investment firm NightDragon, said the government’s move could help address a “perfect storm” of billions of insecure IoT devices.

“Market forces alone were never going to be sufficient to force manufacturers to step up and deliver more secure devices,” he said. “We’ve taken an essential step now in the right direction to put the power back in the hands of the consumers to choose better security.”

The Consumer Technology Association said Tuesday its next annual trade show, CES 2024, will feature “certification-ready products” once the FCC finalizes its rules.

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July 18, 2023
Cathie Wood’s ARK funds dump $26 million more in Coinbase stock, shed $13 million more of Tesla shares

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Funds associated with Cathie Wood’s ARK Investment continued to cull shares of Coinbase Global Inc. and Tesla Inc. on Monday, according to recent trade disclosures.

The ARK Fintech Innovation ETF
ARKF,
+1.58%
dumped 76,788 Coinbase shares
COIN,
+0.23%
on the day, while the ARK Innovation ETF
ARKK,
+2.29%
sold 127,266 and the ARK Next Generation Internet ETF
ARKW,
+2.23%
sold 44,784 shares.

Those were worth $26.3 million based on Coinbase’s Monday closing price of $105.55, and the sales follow ARK’s move to dump about $50 million in Coinbase’s stock Friday.

Coinbase represents 0.78% of the Fintech Innovation ETF, along with 0.15% of the Innovation ETF and 0.30% of the Next Generation Internet ETF. ARK disclosed the transactions and weightings in the daily trade notifications it posts to its website.

Read: Coinbase’s spectacular stock surge after Ripple ruling sparks fierce debate

Meanwhile, the ARK Innovation ETF shed 38,329 Tesla shares
TSLA,
+3.20%
on Monday, while the ARK Next Generation Internet ETF sold 6,855. Those shares were worth $13.1 million based on Tesla’s Monday closing level of $290.38. Tesla represents about 0.12% of both funds as they continue to unload shares.

Don’t miss: Tesla is looking at its best sales quarter ever

ARK scooped up 455 shares of Meta Platforms Inc.
META,
+0.57%
within its Next Generation Internet ETF and bought up 3,729 shares within the ARK Innovation ETF. That amounted to $1.3 million worth of stock based on Meta’s $310.62 Monday close.

Two ARK funds bought a combined $790 million in Robinhood Markets Inc.’s stock
HOOD,
+0.89%,
with the fintech fund scooping up 25,641 shares and the Next Generation Internet ETF buying 37,630 shares. ARK added 4,608 shares of SoFi Technologies Inc.
SOFI,
+4.41%
to the fintech fund, worth $43,683 based on Monday’s close.

See also: SoFi’s stock catches another downgrade as analyst says it ‘needs to be valued more like a bank’

ARK was also active in shares of Twilio Inc.
TWLO,
-0.63%,
buying 15,702 within the Fintech Innovation ETF, 133,499 within the Innovation ETF and 22,748 within the Next Generation Internet ETF. That amounted to $11.4 million in Twilio’s stock based on Monday’s $66.47 closing price.

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July 17, 2023
Microsoft Stock Is a Buy, American Tower Can Climb, and More Analyst Reports

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These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s. Some of the reports’ issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.

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July 14, 2023
FTC files appeal, again seeks to block Microsoft-Activision deal

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The Federal Trade Commission on Thursday asked an appeals court to temporarily block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. while it challenges a ruling earlier this week green-lighting the deal.

The FTC on Thursday asked U.S. District Judge Jacqueline Scott Corley to postpone her ruling — which she promptly denied — and also appealed to the Ninth U.S. Circuit Court of Appeals in San Francisco to pause the acquisition “to preserve the status quo” while the case is reviewed, claiming it is likely to succeed in its appeal.

According to the filing, the FTC claims the judge applied the wrong legal standard to its request for a preliminary injunction, and erred in a number of other matters.

The deal is set to close in the coming days, and letting it happen will “irreparably harm the public interest and the FTC,” regulators said.

Also see: GOP blasts FTC Chair Khan as a ‘bully’ after agency’s loss in Microsoft case

In a response filed with the court, Microsoft said the FTC “failed to carry its burden on independent, fact-based grounds” and “dragged its heels” before appealing.

“The court has already found that it would be inequitable” to order an injunction that could lead to “the potential scuttling of the merger,” Microsoft said, in asking for the FTC’s request to be denied.

The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
MSFT,
+1.62%
Xbox — with a major videogame publisher — Activision
ATVI,
-0.51%
makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers.

Microsoft has pledged to keep “Call of Duty” available to Sony’s
SONY,
+2.82%
PlayStation console for 10 years, and will make it available for Nintendo’s
7974,
-0.36%
Switch and some cloud-gaming platforms.

In her ruling clearing the deal Tuesday, Corley said the FTC did not show “this particular vertical merger in this specific industry may substantially lessen competition.”

Bloomberg News reported late Thursday that Microsoft and Activision are considering giving up some control of their cloud-gaming business in the U.K. to win approval of British regulators, who — if the U.S. appeals court does not act — are the final hurdle to the deal closing on time.

FTC Chair Lina Khan testified on Capitol Hill on Thursday, where Republican lawmakers assailed her actions and sharply criticized her agency’s court losses in trying to block the Microsoft-Activision deal and Meta’s
META,
+1.32%
acquisition of a virtual-reality gaming company earlier this year.

Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

Also: FTC’s probe of OpenAI marks key moment in Khan’s push to rein in Big Tech

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July 13, 2023
FTC will appeal judge’s ruling clearing Microsoft-Activision deal

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The Federal Trade Commission late Wednesday filed notice that it will appeal a judge’s ruling this week that gave Microsoft Corp. the green light to proceed with its $69 billion acquisition of Activision Blizzard Inc.

In a filing with the Ninth Circuit Court of Appeals in San Francisco, the FTC is seeking to overturn U.S. District Judge Jacqueline Scott Corley’s ruling Tuesday, which said the deal would not hurt competition.

“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Brad Smith, Microsoft’s vice chair and president, said in a statement.” We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”

The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
MSFT,
+1.42%
Xbox — with a major videogame publisher — Activision
ATVI,
-1.09%
makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers.

“The facts haven’t changed,” an Activision spokesperson said Wednesday. “We’re confident the U.S. will remain among the 39 countries where the merger can close. We look forward to reinforcing the strength of our case in court, again.”

Microsoft has pledged to keep “Call of Duty” available to Sony’s
SONY,
+1.78%
PlayStation console for 10 years, and will make it available for Nintendo’s
7974,
+1.63%
Switch and some cloud-gaming platforms.

The deal faces a July 18 deadline, and still must gain regulatory approval in the U.K.

Tuesday’s ruling was yet another antitrust setback for the FTC, which has failed to do much to rein in Big Tech, and one analyst told MarketWatch on Tuesday that the regulators need to do ” a much better job of picking their battles,”

Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

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July 12, 2023
How to Turn Tesla Into a Dividend-Paying Stock

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Being an income investor usually means forgoing exciting stocks like

Tesla

and

Nvidia

for a regular payout. But that doesn’t have to be the case, thanks to an options play known as a “covered call.”

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July 11, 2023