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Tag: Meta Platforms Inc

  • Twitter’s desktop app sees surge in outages as Meta’s Threads takes off

    Twitter’s desktop app sees surge in outages as Meta’s Threads takes off

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    In this photo illustration, Threads logo seen displayed on a smartphone with the Twitter profile of Elon Musk in the background. Elon Musk is the current owner of Twitter. Meta will release a social media app called “Threads”, which will be a rival to Twitter. “Threads” is Instagram’s text-based conversation app.

    Mateusz Slodkowski | Lightrocket | Getty Images

    Twitter is experiencing a wave of outages just as Meta’s brand-new rival Threads service is racking up tens of millions of sign-ups.

    Many Twitter users have reported outages over the past 24 hours, with problems seemingly skyrocketing around 9:30 a.m. ET on Friday, according to data from the Downdetector website. Downdetector accumulates its data from users who spot glitches and report them to the service.

    About 70% of the Twitter outages appear related to its desktop service, Downdetector noted. Only 13% were tied to the mobile app.

    Twitter’s TweetDeck service, which helps users manage multiple Twitter conversations, has also suffered downtime in recent days after the company announced that only verified users will be able to access it. However, the primary problem appears to be with the core Twitter app, the data shows.

    Meanwhile, the Threads app has recorded 70 million sign-ups just a day after its official release as of Friday morning, Meta CEO Mark Zuckerberg wrote in a Threads post.

    “Way beyond our expectations,” Zuckerberg said about the app’s immediate popularity.

    On Thursday, Twitter’s new CEO, Linda Yaccarino, who succeeded owner Elon Musk at the helm a month ago, tweeted that the company was “often imitated,” a clear reference to Threads.

    Twitter didn’t provide a comment for this story.

    Watch: There’s more room in Meta’s multiple for upside.

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  • Biogen shares fall after Alzheimer’s drug approval. Here’s what the pros are saying

    Biogen shares fall after Alzheimer’s drug approval. Here’s what the pros are saying

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  • Meta’s Twitter rival Threads explodes to 70 million signups one day after launch

    Meta’s Twitter rival Threads explodes to 70 million signups one day after launch

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    In this photo illustration, the Threads logo by META is displayed on a smartphone with Twitter logo in the background. Threads is the new social network from Meta Platforms which was launched on the 5th of July 2023. 

    Omar Marques | Nurphoto | Getty Images

    Meta’s new Twitter competitor Threads has exploded in growth in its first full day since its public debut Wednesday night, fueled by Instagram’s already massive userbase. The text-based social media platform already has 70 million sign-ups, Meta CEO Mark Zuckerberg said on Friday.

    As of Thursday afternoon, The Verge reported that users had already posted more than 95 million posts and 190 million likes, based on internal company data it had viewed.

    Meta did not provide updated engagement metrics for Threads but directed CNBC to Zuckerberg’s announcement on sign-up numbers.

    The booming growth is helped along by the fact that Threads is tied to an existing social network, Meta’s Instagram. Users can sign up with their existing handles on Instagram and are able to retain some of their following as others sign up for the app.

    “Meta only needs 1 in 4 Instagram users to use Threads monthly for it to be as big as Twitter,” Jasmine Enberg, principal analyst at Insider Intelligence, said in a statement. Twitter reported nearly 238 million monetizable daily active users in its last quarterly earnings report as public company last summer.

    The app still has plenty of room to grow, having not yet launched in Europe, where Instagram’s chief said there is still some regulatory complexity to navigate.

    Twitter owner Elon Musk appears to have already shown some concern about Threads, as his longtime lawyer Alex Spiro wrote a letter to Meta accusing the company of “unlawful misappropriation” of trade secrets.

    “No one on the Threads engineering team is a former Twitter employee,” Meta’s communications director, Andy Stone, wrote on Threads in response to the letter. “That’s just not a thing.”

    Still, growth alone won’t be enough to make Threads an alternative to Twitter that withstands the test of time. The app must also show that it can keep users engaged and coming back.

    While Twitter is known for being heavily used by journalists, politicians and academics and is a place where news often breaks, Meta’s Threads could have a much broader audience and focus due to its tie-in to Instagram, which has different use cases as a visual-based platform. Plus, Meta has taken steps to de-emphasize political content on Facebook, a policy which, if carried over to Threads, would set it apart from Twitter.

    “News hounds and avid Twitter loyalists aren’t likely to defect to Twitter, and Meta will need to keep Threads interesting to maintain the momentum once the novelty wears off,” Enberg wrote. “It’s also not a given that people will use Threads to keep up with news and world events like they do on Twitter, and the culture will be different. But that could work in Meta’s benefit: Even the most engaged Twitter users are fed up with the constant chaos and ad hoc changes, and Threads could offer a nice reprieve.”

    Even so, many politicians have already signed up for the service. Axios reported that as of Thursday evening, more than a quarter of Congress’ 535 members across both chambers had created accounts, as well as half a dozen Republican presidential candidates and top White House aides.

    Many advertisers who are used to working with Meta are also likely to welcome an alternative to Twitter, especially if they view it as more brand safe. The company has said Instagram’s community guidelines will also apply to Threads.

    WATCH: Meta’s Threads is not Twitter killer, but will pose real threat to Twitter’s growth: Analyst

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  • Meta touches 17-month high after Threads platform launch. Here’s what the pros are saying

    Meta touches 17-month high after Threads platform launch. Here’s what the pros are saying

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  • Meta’s Threads has 30 million users in less than 24 hours after launch

    Meta’s Threads has 30 million users in less than 24 hours after launch

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    Threads, the Twitter rival launched by Mark Zuckerberg’s Meta Platforms Inc. META on Wednesday evening, now has 30 million users, Zuckerberg announced Thursday. The app garnered 2 million users in the first two hours after launch, according to Zuckerberg’s first post on the platform. Within seven hours, that number had grown to 10 million. Shortly after 11 a.m. Eastern time, the Facebook founder again posted to say the number had tripled. “Wow, 30 million sign-ups as of this morning. Feels like the beginning of something special, but we’ve got a lot of work ahead to build out the app.” Meta’s stock, meanwhile, was slightly…

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  • Meta launches Threads, its app to rival Twitter, a day early

    Meta launches Threads, its app to rival Twitter, a day early

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    Meta Platforms Inc. launched Threads, its rival to Twitter, a day early Wednesday.

    “Let’s do this. Welcome to Threads,” Meta Chief Executive Mark Zuckerberg posted on the new app.

    The text-based app, a spinoff of Meta’s META Instagram, had been set to launch Thursday morning, but instead went live for users in the U.S. and more than 100 other…

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  • The wait for US passports is creating travel purgatory and snarling summer plans

    The wait for US passports is creating travel purgatory and snarling summer plans

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    WASHINGTON (AP) — Seeking a valid U.S. passport for that 2023 trip? Buckle up, wishful traveler, for a very different journey before you step anywhere near an airport.

    A much-feared backup of U.S passport applications has smashed into a wall of government bureaucracy as worldwide travel rebounds toward record pre-pandemic levels — with too few humans to handle the load. The result, say aspiring travelers in the U.S. and around the world, is a maddening pre-travel purgatory defined, at best, by costly uncertainty.

    With family dreams and big money on the line, passport seekers describe a slow-motion agony of waiting, worrying, holding the line, refreshing the screen, complaining to Congress, paying extra fees and following incorrect directions. Some applicants are buying additional plane tickets to snag in-process passports where they sit — in other cities — in time to make the flights they booked in the first place.

    So grim is the outlook that U.S. officials aren’t even denying the problem or predicting when it will ease. They’re blaming the epic wait times on lingering pandemic -related staffing shortages and a pause of online processing this year. That’s left the passport agency flooded with a record-busting 500,000 applications a week. The deluge is on-track to top last year’s 22 million passports issued, the State Department says.

    Stories from applicants and interviews by The Associated Press depict a system of crisis management, in which the agencies are prioritizing urgent cases such as applicants traveling for reasons of “life or death” and those whose travel is only a few days off. For everyone else, the options are few and expensive.

    So, 2023 traveler, if you still need a valid U.S. passport, prepare for an unplanned excursion into the nightmare zone.

    ‘PLENTY OF TIME’ TO ‘WE’LL STILL BE OK’ TO BIG PROBLEMS

    It was early March when Dallas-area florist Ginger Collier applied for four passports ahead of a family vacation at the end of June. The clerk, she said, estimated wait times at eight to 11 weeks. They’d have their passports a month before they needed them. “Plenty of time,” Collier recalled thinking.

    Then the State Department upped the wait time for a regular passport to as much as 13 weeks. “We’ll still be okay,” she thought.

    At T-minus two weeks to travel, this was her assessment: “I can’t sleep.” This after months of calling, holding, pressing refresh on a website, trying her member of Congress — and stressing as the departure date loomed. Failure to obtain the family’s passports would mean losing $4,000, she said, as well as the chance to meet one of her sons in Italy after a study-abroad semester.

    “My nerves are shot, because I may not be able to get to him,” she said. She calls the toll-free number every day, holds for as much as 90 minutes to be told — at best — that she might be able to get a required appointment at passport offices in other states.

    “I can’t afford four more plane tickets anywhere in the United States to get a passport when I applied in plenty of time,” she said. “How about they just process my passports?”

    THE AMERICAN GOVERNMENT HAS A CULPRIT: COVID

    By March, concerned travelers began asking for answers and then demanding help, including from their representatives in the House and Senate, who widely reported at hearings this year that they were receiving more complaints from constituents on passport delays than any other issue.

    The U.S. secretary of state had an answer, of a sort.

    “With COVID, the bottom basically dropped out of the system,” Antony Blinken told a House subcommittee March 23. When demand for travel all but disappeared during the pandemic, he said, the government let contractors go and reassigned staff that had been dedicated to handling passports.

    Around the same time, the government also halted an online renewal system “to make sure that we can fine tune it and improve it,” Blinken said. He said the department is hiring agents as quickly as possible, opening more appointments and trying to address the crisis in other ways.

    Passport applicants lit up social media groups, toll-free numbers and lawmakers’ phone lines with questions, appeals for advice and cries for help. Facebook and WhatsApp groups bristled with reports of bewilderment and fury. Reddit published eye-watering diaries, some more than 1,000 words long, of application dates, deposits submitted, contacts made, time on hold, money spent and appeals for advice.

    It was 1952 when a law required, for the first time, passports for every U.S. traveler abroad, even in peacetime. Now, passports are processed at centers around the country and printed at secure facilities in Washington, D.C. and Mississippi, according to the Government Printing Office.

    But the number of Americans holding valid U.S. passports has grown at roughly 10% faster than the population over the past three decades, according to Jay Zagorsky, an economist at Boston University’s Questrom School of Business.

    After passport delays derailed his own plans to travel to London earlier this year, Zagorsky found that the number of U.S. passports per American has soared from about three per 100 people in 1989 to nearly 46 per 100 people in 2022. Americans, it turns out, are on the move.

    “As a society gets richer,” says Zagorsky, “the people in that society say, ‘I want to visit the rest of the world.’”

    FOR AMERICANS AND OTHERS ABROAD, IT’S NO PICNIC EITHER

    At U.S. consulates overseas, the quest for U.S. visas and passports isn’t much brighter.

    On a day in June, people in New Delhi could expect to wait 451 days for a visa interview, according to the website. Those in Sao Paulo could plan on waiting more than 600 days. Aspiring travelers in Mexico City were waiting about 750 days; in Bogota, Colombia, it was 801 days.

    In Israel, the need is especially acute. More than 200,000 people with citizenship in both countries live in Israel. It’s one appointment per person, even for newborns, who must have both parents involved in the process, before traveling to the United States.

    Batsheva Gutterman started looking for three appointments immediately after she had a baby in December, with an eye toward attending a family celebration in July, in Raleigh, N.C.

    Her quest for three passports stretched from January to June, days before travel. And it only resolved after Gutterman paid a small fee to join a WhatsApp group that alerted her to new appointments, which stay available for only a few seconds. She ultimately got three appointments on three consecutive days — bureaucracy embodied.

    “We had to drive the entire family with three small children, an hour-and-a-half to Tel Aviv three days in a row, taking off work and school,” she said. “This makes me incredibly uneasy having a baby in Israel as an American citizen, knowing there is no way I can fly with that baby until we get lucky with an appointment.”

    Recently, there appeared to be some progress. The wait for an appointment for a renewed U.S. passport stood at 360 days on June 8. On July 2, the wait was down to 90 days, according to the web site.

    FRUSTRATING TALES EMERGE FROM THE TRENCHES

    Back in the U.S., Marni Larsen of Holladay, Utah, stood in line in Los Angeles, California, on June 14, in hopes of snagging her son’s passport. That way, she hoped, the pair could meet the rest of their family, who had already left as scheduled for Europe, for a long-planned vacation.

    She’d applied for her son’s passport two months earlier and spent weeks checking for updates online or through a frustrating call system. As the mid-June vacation loomed, Larsen reached out to Sen. Mitt Romney ’s office, where one of four people he says is assigned full-time to passport issues were able to track down the document in New Orleans.

    It was supposed to be shipped to Los Angeles, where she got an appointment to retrieve it. That meant Larsen had to buy new tickets for herself and her son to Los Angeles and reroute their trip from there to Rome. All on a bet that her son’s passport was indeed shipped as promised.

    “We are just waiting in this massive line of tons of people,” Larsen said. “It’s just been a nightmare.”

    They succeeded. But not everyone has been so lucky.

    Miranda Richter applied in person to renew passports for herself and her husband, as well as apply a new one on Feb. 9 for a trip with their neighbors to Croatia on June 6. She ended up canceling, losing more than $1,000.

    Her timeline went like this: Passports for her husband and daughter arrived in 11 weeks, while Richter’s photo was rejected. On May 4, she sent in a new one via priority mail. Then she paid a rush fee of $79, which was never charged to her credit card. Between May 30 and June 2, four days before travel, Richter and her husband spent more than 12 hours on the national passport line while also calling their congressman, senators and third-party couriers.

    Finally, she showed up in person at the federal building in downtown Houston, 30 minutes before the passport office opened. Richter said there were at least 100 people in line.

    “The security guard asked when is my appointment, and I burst out in tears,” she recalls. She couldn’t get one. “It didn’t work.”

    FINALLY: A HAPPY ENDING

    “I just got my passports!” Ginger Collier texts.

    She ended up showing up at the passport office in Dallas with her daughter-in-law at 6:30 a.m. and being sorted into groups and lined up against walls. Finally they were called to a window, where the agent was “super nice” and pulled all four of the family’s applications — paperwork that had been sitting in the office since March 17. More than seven hours later, the two left the office with directions to pick up their passports the next day.

    They did — with four days to spare.

    “What a ridiculous process,” Collier says. Nevertheless, the reunion with her son in Italy was sweet. She texted last week: “It was the best hug ever!”

    ___

    Kellman reported from Tel Aviv, Israel, Santana reported from Washington, and Koenig reported from Dallas. Follow Kellman on Twitter at http://twitter.com/APLaurie Kellman, Santana at http://twitter.com/russkygal and Koenig at http://twitter.com/airlinewriter.

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  • Meta’s Twitter killer, Threads, is reportedly coming Thursday

    Meta’s Twitter killer, Threads, is reportedly coming Thursday

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    Meta Platforms Inc.’s answer to Twitter is poised to launch, according to a new report, as Elon Musk’s faltering microblogging app struggles to hold onto advertisers and over the weekend placed restrictions on posts viewed by users.

    The Wall Street Journal reported late Monday that Meta’s
    META,
    -0.33%

    Threads will be released Thursday, and is expected to be built off of Instagram user data, giving it the potential to catch on and grow quickly.

    Bloomberg News also reported it would launch Thursday, citing a listing on Apple Inc.’s
    AAPL,
    -0.78%

    App Store.

    If Threads does launch Thursday, it could come at a perfect time for Meta to capitalize on anger toward Twitter. Late Monday, Twitter announced it was moving its popular TweetDeck viewing tool behind a paywall in 30 days, spurring widespread user outrage.

    Last week, the Threads app briefly appeared on Alphabet Inc.’s
    GOOGL,
    +0.17%

    GOOG,
    -0.34%

    Google Play Store in some regions.

    Threads allows users to port their Instagram username to a new platform that essentially opens direct-message chats on a more public forum. The Facebook parent company has been developing a text-based platform for some time.

    Read more: Musk vs. Zuckerberg: Which tech heavyweight is already winning the Wall Street cage match?

    Twitter, meanwhile, continues to seek ways to stem hemorrhaging advertising under new Chief Executive Linda Yaccarino as it puts a stranglehold on what subscribers can view. In a tweet Saturday, Musk — who acquired Twitter for $44 billion in October — said verified accounts were at one point limited to reading 6,000 posts a day. For unverified accounts, the number was 600 posts a day, while new account could only see 300. That number was later upgraded to 10,000, 1,000 and 500, respectively.

    Animosity between Musk and Meta co-founder and Chief Executive Mark Zuckerberg has been growing as the Twitter-rival app gets closer to market, culminating in Musk’s cage-fight challenge to Zuckerberg last month.

    Mike Murphy contributed to this report.

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  • Tech IPO drought reaches 18 months despite Nasdaq’s sharp rebound in first half of 2023

    Tech IPO drought reaches 18 months despite Nasdaq’s sharp rebound in first half of 2023

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    Karl-Josef Hildenbrand | AFP | Getty Images

    Car-sharing service Turo filed its IPO prospectus in January 2022. A month earlier, Reddit said it submitted a draft registration for a public offering. Instacart’s confidential paperwork was filed in May of last year.

    None of them have hit the market yet.

    Despite a bloated pipeline of companies waiting to go public and a rebound in tech stocks that pushed the Nasdaq up 30% in the first half of 2023, the IPO drought continues. There hasn’t been a notable venture-backed tech initial public offering in the U.S. since December 2021, when software vendor HashiCorp debuted on the Nasdaq.

    Across all industries, only 10 companies raised $100 million or more in U.S. initial share sales in the first six months of the year, according to FactSet. During the same stretch in 2021, there were 517 such transactions, highlighted by billion-dollar-plus IPOs from companies including dating site Bumble, online lender Affirm, and software developers UiPath and SentinelOne.

    As the second half of 2023 gets underway, investors and bankers aren’t expecting much champagne popping for the rest of the year.

    Many once high-flying companies are still hanging onto their old valuations, failing to reconcile with a new reality after a brutal 2022. Additionally, muted economic growth has led businesses and consumers to cut costs and delay software purchases, which is making it particularly difficult for companies to comfortably forecast the next couple of quarters. Wall Street likes predictability.

    So if you’re waiting on a splashy debut from design software maker Canva, ticket site StubHub or data management company Databricks, be patient.

    “There’s a disconnect between valuations in 2021 and valuations today, and that’s a hard pill to swallow,” said Lise Buyer, founder of IPO consultancy Class V Group in Portola Valley, California. “There will be incremental activity after a period of absolute radio silence but it isn’t like companies are racing to get out the door.”

    The public markets tell an uneven story. This year’s rally has brought the Nasdaq to within 15% of its record from late 2021, while an index of cloud stocks is still off by roughly 50%.

    Some signs of optimism popped up this month as Mediterranean restaurant chain Cava went public on the New York Stock Exchange. The stock more than doubled on its first day of trading, indicating high demand from retail investors. Buyer noted that institutions were also enthused about the deal.

    Last Friday, Israeli beauty and tech company Oddity, which runs the Il Makiage and Spoiled Child brands, filed to go public on the Nasdaq.

    That all comes after a big month for secondary offerings. According to data from Goldman Sachs, May was the busiest month for public stock sales since November 2021, driven by a jump in follow-on deals.

    Apple, Nvidia outperform

    While investors are craving new names, they’re much more discerning when it comes to technology than they were at the tail end of the decade-long bull market.

    Mega-cap stocks Apple and Nvidia have seen outsized gains this year and are back to trading near all-time highs, boosting the Nasdaq because of their hefty weightings in the index. But the advances are not evenly spread across the industry.

    In particular, investors who bet on less mature businesses are still hurting. The companies that held the seven-biggest tech IPOs in the U.S. in 2021 have lost at least 40% of their value since their debut. Coinbase, which went public through a direct listing, is down more than 80%.

    That year’s IPO class featured high-growth businesses with even higher cash burn, an equation that worked fine until recession concerns and rising interest rates pushed investors into assets better positioned to withstand an economic slowdown and increased capital costs.

    Employees of Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, watch as their listing is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, April 14, 2021.

    Shannon Stapleton | Reuters

    Bankers and investors tell CNBC that optimism is picking up, but ongoing economic concerns and the valuation overhang from the pre-2022 era set the stage for a quiet second half for tech IPOs.

    One added challenge is that fixed income alternatives are back. Following a lengthy stretch of near-zero interest rates, the Federal Reserve this year lifted its target rate to between 5% and 5.25%. Parking money in short-term Treasurys, certificates of deposit and high-yield savings offerings can now generate annual returns of 5% or more.

    “Interest rates are not only about the cost of financing, but also getting investors to trade out of 5% risk-free returns,” said Jake Dollarhide, CEO of Longbow Asset Management. “You can make 15%-20% in the stock market but lose 15%-20%.”

    Dollarhide, whose firm has invested in milestone tech offerings like Google and Facebook, says IPOs are important. They offer more opportunities for money managers, and they generate profits for the tech ecosystem that help fund the next generation of innovative companies.

    But he understands why there’s skepticism about the window reopening. Perhaps the biggest recent bust in tech investing followed the boom in special purpose acquisition companies (SPACs), which brought scores of less mature companies to the public market through reverse mergers.

    Names like Opendoor, Clover Health, 23andMe and Desktop Metal have lost more than 80% of their value since hitting the market via SPAC.

    “It seems the foul odor of failure from the 2021 SPAC craze has spoiled the appetite from investors seeking IPOs,” Dollarhide said. “I think that’s done some harm to the traditional IPO market.”

    Private markets have felt the impact. Venture funding slowed dramatically last year from record levels and has stayed relatively suppressed, outside of the red-hot area of artificial intelligence. Companies have been forced to cut staff and close offices in order to preserve cash and right-size their business

    Pre-IPO companies like Stripe, Canva and Klarna have taken huge hits to their valuations, either through internal measures or markdowns from outside investors.

    The waiting game

    Few have been hit as hard as Instacart, which has repeatedly slashed its valuation, from a peak of $39 billion to as low as $10 billion in late 2022. Last year, the company confidentially registered for an IPO, but still hasn’t filed publicly and doesn’t have immediate plans to do so.

    Similarly, Reddit said in December 2021 that it had confidentially submitted a draft registration statement to go public. That was before the online ad market took a dive, with Facebook suffering through three straight quarters of declining revenue and Google’s ad sales also slipping.

    Now Reddit is in the midst of a business model shift, moving its focus beyond ads and toward generating revenue from third-party developers for the use of its data. But that change sparked a protest this month across a wide swath of Reddit’s most popular communities, leaving the company with plenty to sort through before it can sell itself to the public.

    A Reddit spokesperson declined to comment.

    Thousands of Reddit pages go dark in protest over company's new third-party app policy

    Turo was so close to an IPO that it went beyond a confidential filing and published its full S-1 registration statement in January 2022. When stocks sold off, the offering was indefinitely delayed. To avoid withdrawing its filing, the company has to continue updating its quarterly results.

    Like Instacart, Turo operates in the sharing economy, a dark spot for investors last year. Airbnb, Uber and DoorDash have all bounced back in 2023, but they’ve also instituted significant job cuts. Turo has gone in the opposite direction, more than doubling its full-time head count to 868 at the end of March from 429 at the time of its original IPO filing in 2021, according to its latest filing. The company reportedly laid off about 30% of its staff in 2020, during the Covid pandemic.

    Turo and Instacart could still go public by year-end if market conditions continue to improve, according to sources familiar with the companies who asked not to be named because they weren’t authorized to speak publicly on the matter.

    Byron Deeter, a cloud software investor at Bessemer Venture Partners, doesn’t expect any notable activity this year, and says the next crop of companies to debut will most likely wait until after showing their first-quarter results in 2024.

    “The companies that were on file or were considering going out a little over a year ago, they’ve pulled, stopped updating, and overwhelmingly have no plans to refile this calendar year,” said Deeter, whose investments include Twilio and HashiCorp. “We’re 10 months from the real activity picking up,” Deeter said, adding that uncertainty around next year’s presidential election could lead to further delays.

    In the absence of IPOs, startups have to consider the fate of their employees, many of whom have a large amount of their net worth tied up in their company’s equity, and have been waiting years for a chance to sell some of it.

    Stripe addressed the issue in March, announcing that investors would buy $6.5 billion worth of employee shares. The move lowered the payment company’s valuation to about $50 billion from a high of $95 billion. Deeter said many late-stage companies are looking at similar transactions, which typically involve allowing employees to sell around 20% of their vested stock.

    He said his inbox fills up daily with brokers trying to “schlep little blocks of shares” from employees at late-stage startups.

    “The Stripe problem is real and the general liquidity problem is real,” Deeter said. “Employees are agitating for some path to liquidity. With the public market still pretty closed, they’re asking for alternatives.”

    G Squared is one of the venture firms active in buying up employee equity. Larry Aschebrook, the firm’s founder, said about 60% of G Squared’s capital goes to secondary purchases, helping companies provide some level of liquidity to staffers.

    Aschebrook said in an interview that transactions started to pick up in the second quarter of last year and continued to increase to the point where “now it’s overwhelming.” Companies and their employees have gotten more realistic about the market reset, so significant chunks of equity can now be purchased for 50% to 70% below valuations from 2021 financing rounds, he said.

    Because of nondisclosure agreements, Aschebrook said he couldn’t name any private company shares he’s purchased of late, but he said his firm previously bought pre-IPO secondary stock in Pinterest, Coursera, Spotify and Airbnb.

    “Right now there’s a significant need for that release of pressure,” Aschebrook said. “We’re assisting companies with elongating their private lifecycle and solving problems presented by staying private longer.”

    WATCH: The private market index is trading up for the first time in two years

    Forge Global CEO: The private market index is trading up for the first time in two years

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  • Facebook urged to suspend strongman leader over video threatening violence | CNN Business

    Facebook urged to suspend strongman leader over video threatening violence | CNN Business

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    The oversight board for Facebook’s parent company Meta Platforms on Thursday said Cambodian Prime Minister Hun Sen should be suspended from the social media site for six months for posting a video violating rules against violent threats.

    The board, which is funded by Meta but operates independently, said the company had been wrong not to remove the video after it was published in January.

    Meta, in a written statement, agreed to take down the video but said it would respond to the board’s recommendation to suspend Hun Sen after a review.

    Any suspension would silence the prime minister’s Facebook page less than a month before an election in Cambodia. Opposition and rights groups have said the poll will be a sham – accusations dismissed by the government.

    Hun Sen’s Facebook account appeared to go offline late on Thursday. The prime minister – one of the world’s longest-serving leaders after nearly four decades in power – had said on Wednesday that he was switching from Facebook to the messaging app Telegram to reach more people, without mentioning the video.

    A Meta spokesperson said the company had not suspended or removed his account.

    There was no immediate government comment on the case on Thursday.

    The decision is the latest in a series of rebukes by the oversight board over how the world’s biggest social media company handles contentious statements by political leaders and posts calling for violence around elections.

    The company’s election integrity efforts are in focus as the United States prepares for presidential elections next year.

    The board endorsed Meta’s 2021 banishment of former US President Donald Trump – the current frontrunner for the 2024 Republican presidential nomination – after the deadly January 6 Capitol Hill riot, but criticized the indefinite nature of his suspension and urged more careful preparation for volatile political situations overall.

    Meta reinstated the former US president’s account earlier this year.

    The Cambodia case came after several users reported a January video where Hun Sen said those who accused his Cambodian People’s Party (CPP) of buying votes in a 2022 local election should file a legal case, or face a beating from CPP’s supporters.

    Meta determined at the time that the video fell afoul of its rules, but opted to leave it up under a “newsworthiness” exemption, reasoning that the public had an interest in hearing warnings of violence by their government, the ruling said.

    The board held that the video’s harms outweighed its news value.

    Cambodia’s government has denied targeting the opposition and says those subject to legal action are law breakers.

    Phil Robertson, deputy Asia director for Human Rights Watch, said Hun Sen had finally been called out for inciting violence.

    “This kind of face-off between Big Tech and a dictator over human rights issues is long overdue,” he said in a statement.

    Last week, the board said Meta’s handling of calls for violence after the 2022 Brazilian election continued to raise concerns about the effectiveness of its election efforts.

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  • Citi raises Meta price target to highest on Wall Street, cites strong Reels ads

    Citi raises Meta price target to highest on Wall Street, cites strong Reels ads

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  • CNBC Daily Open: Tech, meet reality

    CNBC Daily Open: Tech, meet reality

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    A shopper stands in front of a Tesla Motors showroom at a retail shopping mall in Hong Kong.

    Sebastian Ng | Sopa Images | Lightrocket | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Tech sell-off
    Major
    U.S. indexes fell Monday, dragged down by a sell-off in technology stocks. Stock futures, however, inched up. Markets in Asia-Pacific traded mixed Tuesday. Japan’s Nikkei 225 fell for the fourth straight day, but analysts think the rally in Japanese stocks, which began in late May, isn’t a bubble like the one that burst in 1990.

    Leaders speak
    In his first televised address since the Wagner Group marched on Moscow, Russian President Vladimir Putin said organizers of the armed mutiny will be “brought to justice” and that his military would have crushed the rebellion. Separately, U.S. President Joe Biden said the U.S. “had nothing to do with [the events], this was part of a struggle within the Russian system.”

    Microsoft wants explosive growth
    Microsoft CEO Satya Nadella wants the tech giant to hit $500 billion in revenue by fiscal 2030, according to a court filing. That’s more than double its $198.26 billion in revenue for 2022, implying revenue growth of at least 10% per year. Indeed, Nadella sketched out a “20/20” goal, which involves growing revenue and operating income by 20% year over year.

    On track for 5%
    China is on track to hit its annual growth target of “around 5%,” said Chinese Premier Li Qiang at the World Economic Forum’s Annual Meeting of the New Champions. China’s economy has been struggling lately, with economic activity growing slower than expected in May. Separately, Aramco’s CEO Amin Nasser thinks oil demand from China and India will continue growing and prop up the market this year.

    [PRO] Imminent drop in the S&P?
    Mile Wilson, Morgan Stanley’s chief U.S. equity strategist, thinks the “risks for a major correction [in the stock market] have rarely been higher” because of four factors that will weigh down on markets. Wilson, who predicted the fall in markets last year, thinks the S&P 500 will drop to 3,900 in the fourth quarter. That’s around 10% lower from its Monday close, among the most bearish outlooks on Wall Street.

    The bottom line

    The attempted insurrection in Russia across the weekend dominated headlines, but it didn’t seem to occupy investors’ minds. Instead, “macro factors are likely to remain the main drivers of risk assets,” wrote Barclays’ Global Chairman of Research Ajay Rajadhyaksha in a Monday note.

    Indeed, tech stocks slumped across the board as investor enthusiasm over artificial intelligence fizzled out and was replaced by a more clear-eyed view of today’s economic conditions.

    Alphabet fell 3.27% after UBS downgraded the company, citing stiff competition in the AI sector. Nvidia and Meta fell in sympathy, losing more than 3% each. But that wasn’t as bad as Tesla’s plunge of 6.06% after Goldman Sachs downgraded the electric car maker because of a “difficult pricing environment for new vehicles.”

    The sell-off in tech put pressure on the Nasdaq Composite, which sank 1.16%. The S&P 500 fell 0.45% while the Dow Jones Industrial Average dipped 0.04%.

    There might be more pain to come. The tech rally is “running out of steam,” according to Berenberg, a German bank. Tech, as a future-oriented sector, needs lower interest rates if it wants to continue rising.

    But with the Federal Reserve emphasizing it’d keep rates high for now, lower rates would imply “a sharp economic slowdown,” Jonathan Stubbs, equity strategist at Berenberg, wrote. Stubbs mentioned that such a scenario would “be to tech’s disadvantage,” but, really, no one would benefit from it.

    Nonetheless, with just a few days left before June ends, the three major indexes are poised to finish the second quarter higher. The recession is still months away, it seems — as it’s been for the past year. Fingers crossed we manage to elude it for so long that it gets tired of catching up with us.

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  • CNBC Daily Open: Tech confronts reality

    CNBC Daily Open: Tech confronts reality

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    A Tesla Inc. store in Beijing, China, on Wednesday, May 31, 2023.

    Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Tech sell-off
    Major
    U.S. indexes fell Monday, dragged down by a sell-off in technology stocks. Stock futures, however, inched up. European markets traded mixed. The pan-European Stoxx 600 dipped 0.1%, continuing its five consecutive days of falling last week, even as S&P Global Ratings doubled its 2023 gross domestic product forecast for the euro zone from 0.3% to 0.6%.

    Leaders speak
    In his first televised address since the Wagner Group marched on Moscow, Russian President Vladimir Putin said organizers of the armed mutiny will be “brought to justice” and that his military would have crushed the rebellion. Separately, U.S. President Joe Biden said the U.S. “had nothing to do with [the events], this was part of a struggle within the Russian system.”

    A ‘mortgage catastrophe’
    The U.K. is facing a “mortgage catastrophe,” warned the country’s shadow finance minister. The Bank of England’s 50 basis points rate hike last week will push mortgages up. That, in turn, will bring the number of households without savings by the end of the year to 7.8 million, or 30% of households nationwide, estimated the National Institute of Economic and Social Research, an independent think tank.

    Apple’s new shoots
    Apple’s new Vision Pro headset aside, the tech company is reportedly planning to refresh all its major products in the next 12 months. On track to be released are a second version of the Apple Watch Ultra, a new 30-inch iMac (which would be the company’s largest all-in-one desktop to date), iPad Pros with OLED screens, MacBook Pros equipped with Apple’s new M3 chip, among other products.

    [PRO] Imminent drop in the S&P?
    Mile Wilson, Morgan Stanley’s chief U.S. equity strategist, thinks the “risks for a major correction [in the stock market] have rarely been higher” because of four factors that will weigh down on markets. Wilson, who predicted the fall in markets last year, thinks the S&P 500 will drop to 3,900 in the fourth quarter. That’s around 10% lower from its Monday close, among the most bearish outlooks on Wall Street.

    The bottom line

    The attempted insurrection in Russia across the weekend dominated headlines, but it didn’t seem to occupy investors’ minds. Instead, “macro factors are likely to remain the main drivers of risk assets,” wrote Barclays’ Global Chairman of Research Ajay Rajadhyaksha in a Monday note.

    Indeed, tech stocks slumped across the board as investor enthusiasm over artificial intelligence fizzled out and was replaced by a more clear-eyed view of today’s economic conditions.

    Alphabet fell 3.27% after UBS downgraded the company, citing stiff competition in the AI sector. Nvidia and Meta fell in sympathy, losing more than 3% each. But that wasn’t as bad as Tesla’s plunge of 6.06% after Goldman Sachs downgraded the electric car maker because of a “difficult pricing environment for new vehicles.”

    The sell-off in tech put pressure on the Nasdaq Composite, which sank 1.16%. The S&P 500 fell 0.45% while the Dow Jones Industrial Average dipped 0.04%.

    There might be more pain to come. The tech rally is “running out of steam,” according to Berenberg, a German bank. Tech, as a future-oriented sector, needs lower interest rates if it wants to continue rising.

    But with the Federal Reserve emphasizing it’d keep rates high for now, lower rates would imply “a sharp economic slowdown,” Jonathan Stubbs, equity strategist at Berenberg, wrote. Stubbs mentioned that such a scenario would “be to tech’s disadvantage,” but, really, no one would benefit from it.

    Nonetheless, with just a few days left before June ends, the three major indexes are poised to finish the second quarter higher. The recession is still months away, it seems — as it’s been for the past year. Fingers crossed we manage to elude it for so long that it gets tired of catching up with us.

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  • Elon Musk and Mark Zuckerberg say they’re ready for a cage fight | CNN Business

    Elon Musk and Mark Zuckerberg say they’re ready for a cage fight | CNN Business

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    London
    CNN
     — 

    Business rivalry seemingly isn’t enough for two of the tech industry’s most powerful billionaires. Now Elon Musk and Mark Zuckerberg say they want to settle their scores in a cage fight.

    Twitter owner and Tesla

    (TSLA)
    CEO Musk recently tweeted that he would be “up for a cage fight” with Zuckerberg, the CEO of Meta. In an Instagram story Wednesday, Zuckerberg fired back by posting a screenshot of Musk’s tweet overlaid with the caption: “Send Me Location.”

    Musk then responded to a tweet about the fight by Alex Heath, editor of tech news website Verge, with “Vegas Octagon” — a reference to the Las Vegas arena that hosts the Ultimate Fighting Championship.

    “I have this great move that I call ‘The Walrus,’ where I just lie on top of my opponent & do nothing,” he added in a separate tweet.

    CNN has contacted Meta for comment. A spokesperson for the company told Verge: “The [Instagram] story speaks for itself.”

    It remains unclear whether Zuckerberg and Musk are serious or having a laugh.

    Quite who would win in a cage fight, however, remains to be seen. Musk is physically bigger than Zuckerberg, but the Meta chief practices jiu-jitsu, the Brazilian martial art, and won gold and silver in a tournament in May.

    Oddspedia, a sports betting platform, collated odds from several different bookmakers, including Bovada, Bet Online and Ladbrokes, and concluded that Zuckerberg has an 83% chance of winning the fight.

    Meanwhile, bookmaker Paddy Power is betting the match never happens, but that if it does, both men have an equal chance of winning.

    “If this fight does actually go ahead, with a bit of luck, they’ll both knock some sense into each other,” a spokesperson for the Irish company said in a statement.

    The two — who in the past jostled for a high spot on the Bloomberg Billionaires Index before Musk became the world’s richest man — have clashed before.

    In 2017, they engaged in a very public feud over the future of artificial intelligence.

    Musk had repeatedly warned about the dangers of AI, describing it as a potentially existential threat to the human race. Zuckerberg, on the other hand, took a much more optimistic view.

    During a Facebook Live broadcast at the time he dismissed “naysayers” who sketched out “doomsday scenarios” as being “pretty irresponsible.”

    Musk shot back shortly afterward, tweeting: “I’ve talked to Mark about this. His understanding of the subject is pretty limited.”

    Musk knocked Zuckerberg from the number three spot on the Bloomberg Billionaires Index in 2020, before becoming the richest person in the world soon after that.

    He was briefly ousted from the top spot in December by Bernard Arnault, the chairman of French luxury goods giant LVMH

    (LVMHF)
    , before reclaiming his title in May. Zuckerberg is now in the 10th position.

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  • How to tell your company has layoffs planned. Some signs ‘will send shivers down your spine,’ career expert says

    How to tell your company has layoffs planned. Some signs ‘will send shivers down your spine,’ career expert says

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    Daniel Grill | Tetra Images | Getty Images

    The start of the year was plagued by waves of layoffs: through the end of May, companies announced plans to cut 417,500 jobs, up 315% from the same period last year, according to Challenger, Gray & Christmas. Big names like Disney, Google, Lyft and Meta were among those announcing cuts.

    Figuring out if your company might be next isn’t easy, but there are some clues to watch for, experts say.

    “There are signs that will send shivers down your spine,” said Suzy Welch, a career advisor and CNBC contributor.

    More from Personal Finance:
    Average credit card interest rate is a record 20.69%
    Mortgage points may help homebuyers lower monthly costs amid high interest rates
    Firms are ‘bombarding’ small businesses with ads for a Covid-era tax credit

    The state of layoffs

    The tech industry has led layoff headlines, with more than 206,000 workers losing their jobs so far in 2023, according to Layoffs.fyi, a survey that keeps score of tech roles in the industry.

    But every industry except for four — education, government, industrial manufacturing and utilities — has seen an increase in layoffs this year, according to Challenger, Gray & Christmas data.

    Retailers laid off 45,168 workers through May, while financial firms announced 36,937 cuts, the firm found. The media industry slashed 17,436, its highest year-to-date tally on record.

    Overall layoffs declined to 1.6 million in April from 1.8 million in March, according to the latest figures from the Job Openings and Labor Turnover Summary (JOLTS), a measure that also serves as a recession indicator.

    “When the involuntary rate goes up, we are looking at more recessionary times,” said economist José Fernández, an associate professor at University of Louisville. “But if the voluntary rate is going up, it’s saying that workers have more demand, so they’re out there trying to get a better opportunity for themselves.”

    Amazon, Dropbox and Lyft had the biggest layoffs in the tech industry for April. Google and Facebook parent Meta Platforms are responsible for the most tech layoffs since the pandemic, according to Layoffs.fyi.

    Look at WARN notices in your state

    So-called WARN notices can help workers figure out if layoffs are coming, Vivian Tu, a former trader turned influencer who goes by “Your Rich BFF,” said in a March Instagram video.

    WARN notices get their name from the Worker Adjustment and Retraining Notification Act of 1988, a labor-protection law that requires companies with 100 or more employees to provide a 60 calendar-day notice of planned closings and layoffs.

    In her video, Tu suggests searching for WARN notices in your state and others where your company does business to find the state government website that lists companies letting go of employees.

    However, sometimes companies can avoid releasing these notices by spreading out the layoffs, said Susan Houseman, director of research for the W.E. Upjohn Institute for Employment Research.

    “So maybe you’re going to lay off 75, say you lay off 40 one month and 26 the next to avoid WARN notice,” she said.

    The law also protects employers by providing exceptions, such as unforeseen circumstances where the company could not have given a two-month notice to employees.

    “All of a sudden something happens, demand for your product does a sudden nose[dive], and you just have to lay off workers, and you don’t have time to give them a 60-day notice,” Houseman said.

    She clarified that this exception is not a solution for companies undergoing bankruptcies, because “you can’t have anticipated the bankruptcy 60 days out and declined to give notice.”

    “Unless there’s rigorous enforcement of this, there certainly can be circumstances where companies should have given notice and didn’t,” Houseman said.

    More ways to scope out layoffs

    WARN notices are not the only red flags that can signal pending layoffs. Welch offers three more ways to investigate:

    1. Pretend you are an investor and follow news on your company. “Sometimes the earliest canary in the coal mine are the industry media,” Welch said. Monitor your company online by reading what industry analysts and other experts are saying on different platforms about its finances and prospects. Subscribe to newsletters, blogs and outlets that cover your industry to keep a closer look at trends in your sector.
    2. Pay attention to your company’s financial health. Workers can know how their company is doing financially by paying attention to earnings reports and guidance, and movements in its share price. “You have to have the discipline to take a look at what the markets are saying about your company and which way the stock price is going,” Welch said.
    3. Watch your boss for clues. A trusting relationship with your supervisor can positively impact your work life on several fronts. You could hear of an incoming layoff earliest from them, as they will know before you. “Your boss is a human being. A boss will share that information with members of the team that they really trust,” Welch said.

      Of course, cost cutting is another sign to watch out for. Some examples include the cancellation of annual or regular events, or programs, projects and perks.

      “Anything that signals resource cuts that are not people, companies generally will try to cut projects, programs and events before they start cutting staff. You can be concerned that they are coming for people next,” Welch said.

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  • Here’s what an overbought market and endless negativity tell me to do this week

    Here’s what an overbought market and endless negativity tell me to do this week

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    Jim Cramer on Squawk on the Street, June 30, 2022.

    Virginia Sherwood | CNBC

    Not a great setup. There are too many articles and postings about how we are overdoing artificial intelligence, and how there’s not enough substance to justify recent market moves.

    There’s no question that the market, particularly the Nasdaq, has rallied endlessly on what amounts to the same information: Nvidia (NVDA) makes great cards; Adobe‘s (ADBE) putting them to use; so is Meta Platforms (META) but we don’t know how; as are Microsoft (MSFT), Alphabet‘s (GOOGL) Google and, most importantly, Oracle (ORCL); but don’t forget Broadcom (AVGO) and Marvell (MVRL).

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  • How a hawkish Fed could kill a baby bull-market rally in U.S. stocks

    How a hawkish Fed could kill a baby bull-market rally in U.S. stocks

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    It is the notion that the Federal Reserve could deliver a hawkish jolt to markets even if it refrains from raising rates when its two-day policy meeting ends on Wednesday.

    There are concerns that such an outcome could spark a turnaround in U.S. stocks, especially if an uncomfortably strong reading on May inflation — due this coming Tuesday just as the Fed’s policy meeting is slated to begin — pushes the central bank toward something even more extreme, like delivering a rate increase on Wednesday despite intimating that it plans to abstain.

    The May consumer-price index is forecast to rise 4.0% for the year, down from a rise of 4.9%, while the core index, excluding food and energy prices, is seen easing to a rise of 5.3% from 5.5%.

    On the other hand, signs that the economy has weakened and inflation has continued to fade would help the Fed to justify skipping a rate increase in June — as several senior officials have suggested it will — while signaling that a potential hike at its following meeting in July could be the final increase for the cycle.

    “Softening U.S. data should support calls that a June skip could eventually turn into a July pause. Next week, most of the data is expected to remain weak or little changed: retail sales could be flat m/m, the Fed regional surveys should remain in negative territory, and consumer sentiment will waver,” said Craig Erlam, senior market analyst at OANDA, in emailed commentary.

    See: The Fed’s crystal ball on inflation appears off the mark again. Here’s comes another fix.

    Wednesday’s meeting comes at a critical time for the market. U.S. stocks have powered ahead for more than six months, with the S&P 500
    SPX,
    +0.11%

    having risen more than 20% off its Oct. 12 closing low, according to FactSet. Just this past week, the index exited bear-market territory for the first time in a year.

    The index is up 12% so far in 2023, reversing some of its 19.4% decline from 2022, its biggest calendar-year drop since 2008, according to Dow Jones Market Data.

    So far this year, highflying tech stocks have helped to paper over weakness in other areas of the market. This has started to change over the past two weeks, as small-cap and value-stocks have lurched suddenly higher, but there are fears that the Fed could hurt the most interest-rate sensitive technology names if Chairman Jerome Powell hints at rates rising higher than investors presently anticipate.

    The so-called “Megacap eight” stocks — a group that includes both classes of Alphabet Inc. stock
    GOOG,
    +0.16%

    GOOGL,
    +0.07%
    ,
    Microsoft Corp.
    MSFT,
    +0.47%
    ,
    Tesla Inc.
    TSLA,
    +4.06%
    ,
    Microsoft Corp.
    MSFT,
    +0.47%
    ,
    Netflix Inc.
    NFLX,
    +2.60%
    ,
    Nvidia Corp.
    NVDA,
    +0.68%
    ,
    Meta Platforms Inc.
    META,
    +0.14%

    — have driven nearly all of the S&P 500’s gains this year, according to Ed Yardeni, president of Yardeni Research, who included his analysis in a note to clients.

    But since the beginning of June, the Russell 2000
    RUT,
    -0.80%
    ,
    a gauge of small-cap stocks in the U.S., has risen more than 6.6%, according to FactSet data. The Russell 1000 Value Index
    RLV,
    -0.15%

    has also gained nearly 3.7% in that time. During this period, both have outperformed the tech-heavy Nasdaq Composite
    COMP,
    +0.16%
    ,
    although the Nasdaq remains the market leader, having risen 26.7% since Jan. 1.

    Concerns about the Fed’s plans intensified this week after the Bank of Canada delivered a surprise interest-rate hike, ending a four-month pause. The BOC’s decision followed a similar move by the Reserve Bank of Australia, and partly as a result, U.S. Treasury yields rose and tech-heavy stocks tumbled, with the Nasdaq logging its biggest drop since April 25, according to FactSet.

    While small-caps held up amid the chaos, the reaction stoked fears that something similar might be in store for markets when the Fed delivers its latest decision on interest rates Wednesday.

    Consequences of a ‘hawkish pause’

    Stocks could be in for more turbulence if the Fed signals it plans to follow the BOC and RBA with a hawkish surprise of its own. And it wouldn’t necessarily need to hike rates to pull this off, market strategists said.

    Emerging signs of complacency in the market could complicate its reaction. That the Cboe Volatility Index has fallen back below 15
    VIX,
    +1.32%

    for the first time since before the arrival of COVID-19 is one such sign that investors aren’t worried enough about a potential selloff, said Miller Tabak + Co.’s Chief Market Strategist Matt Maley.

    Another analyst likened the potential fallout from a hawkish Fed to the bad old days of 2022.

    “If the Fed signals that rates will be going up again, the market playbook could read more like 2022 than what we have seen so far in 2023,” said Will Rhind, the founder and CEO of GraniteShares, during a phone interview with MarketWatch.

    Perhaps the biggest wild card is Tuesday’s inflation report. If the numbers come in hot, Powell and his peers could face pressure to hike rates without priming the market first.

    For this reason, Rhind believes investors are underestimating the likelihood of a hike next week, even as Fed funds futures currently see a roughly 70% probability that the central bank will stand pat, according to the CME’s FedWatch tool.

    And Rhind isn’t the only one. Leslie Falconio, chief investment officer at UBS Global Wealth Management, says the Tuesday inflation report could be a make-or-break moment for markets, summing up fears expressed elsewhere on Wall Street in a recent note to clients.

    “We believe another rate increase is on the table, and that the CPI release on 13 June, a day before the Fed decision, will be decisive. In our view, another hike won’t have a material impact on the pace of economic growth,” Falconio said.

    What should investors watch out for?

    Assuming the Fed does forego a hike in June, there are a few key tells that investors should watch for to determine whether a “hawkish pause” is under way.

    Perhaps the most important will be how the Fed handles changes to its closely watched “dot plot.” A modestly higher median dot would send an unmistakable signal to the market that the Fed will continue with its campaign of tightening monetary policy, perhaps to the detriment of the market, said Patrick Saner, head of macro strategy at the Swiss Re Institute.

    “If the Fed skips but wanted to avoid the impression of the hiking cycle being done, it would need to include a revision of the dot plot. They could justify that with a more resilient GDP forecast and a higher inflation outlook. So I think it is the dots and then the statement that will be in focus,” Saner said during a phone interview with MarketWatch.

    Beyond that, whatever the Fed does or says will likely be viewed through the lens of economic data that is due out next week. In addition to the Tuesday inflation report, a report on May retail sales is due out Thursday, and a on consumer sentiment from the University of Michigan will land on Friday. All these data points could influence investors’ impressions of the state of the U.S. economy, and their expectations for how the Fed will behave as a result.

    See also: Puzzled by the ebb and flow of recession worries? Then the MarketWatch weekly recession worry gauge is for you.

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  • Meta CEO Mark Zuckerberg touts to employees ‘incredible breakthroughs’ the company has seen in A.I.

    Meta CEO Mark Zuckerberg touts to employees ‘incredible breakthroughs’ the company has seen in A.I.

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    Mark Zuckerberg, CEO, Meta Platforms, in July 2021.

    Kevin Dietsch | Getty Images News | Getty Images

    Meta CEO Mark Zuckerberg wants his workforce to know the company is in the middle of the artificial intelligence race.

    During a meeting with employees Thursday in the Hacker Square pavilion at Meta’s Menlo Park headquarters, Zuckerberg discussed Meta’s AI efforts, a spokesperson confirmed. It was the first event held there since before the Covid-19 pandemic.

    related investing news

    CNBC Investing Club

    Zuckerberg addressed Meta’s recent layoffs at the beginning of the gathering but focused mostly on the company’s projects in the burgeoning field of generative AI, which uses written prompts to create conversational text and compelling visuals.

    “In the last year, we’ve seen some really incredible breakthroughs — qualitative breakthroughs — on generative AI and that gives us the opportunity to now go take that technology, push it forward, and build it into every single one of our products,” Zuckerberg said, according to a statement shared with CNBC. “We’re going to play an important and unique role in the industry in bringing these capabilities to billions of people in new ways that other people aren’t going to do.”

    Axios first reported on the meeting and the AI projects Meta is pursuing.

    While Meta has long touted its investments in AI, the company hasn’t been at the center of the conversation regarding the latest consumer applications, which have come from Microsoft-backed OpenAI, Google and Microsoft itself.

    At the meeting Thursday, Zuckerberg and other Meta executives detailed some of the company’s work incorporating generative AI models into the metaverse, the nascent virtual world Meta is sinking billions of dollars into every quarter to try and make a reality. In particular, they talked about how AI can help create the 3D visuals for the metaverse.

    Meta said it’s giving employees access to several internal generative AI tools to help develop prototypes, and the company is hosting a hackathon for workers to show off their AI projects.

    The company also plans to debut a service for Instagram users that will let them modify photos via text prompts and share them in the app’s Stories feature.

    Additionally, Meta plans for its Messenger and WhatsApp services to eventually include the ability for users to engage with more sophisticated AI-powered chatbots as a form of entertainment.

    Meta executives told employees the company is still committed to releasing AI research to the open-source community. However, they didn’t address a recent letter from Sens. Richard Blumenthal, D-CT, and Josh Hawley, R-MO, expressing concern over a public leak of the company’s LLaMA language model and the “the potential for its misuse in spam, fraud, malware, privacy violations, harassment and other wrongdoing and harms.”

    Last week, Meta told employees they will need to work at the company’s offices three days a week, starting in September. Amazon and Google have also altered their previous work-from-home policies in recent months.

    WATCH: Meta has a lot of work to do before its VR headset becomes mainstream

    Meta has a lot of work to do before its VR headset becomes mainstream: Jefferies' Brent Thill

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  • Cramer: This is my game plan for the week ahead after Friday’s surprise rally

    Cramer: This is my game plan for the week ahead after Friday’s surprise rally

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    US President Joe Biden, accompanied by Speaker of the House Kevin McCarthy, Republican of California, arrives for the annual Friends of Ireland luncheon on St. Patrick’s Day at the US Capitol in Washington, DC, on March 17, 2023.

    Saul Loeb | AFP | Getty Images

          

    What the heck really did happen on Friday, when the Dow jumped 700 points on a strong jobs reading? Why such a viscerally positive reaction to an employment number that was hotter than expected? Was it because wages didn’t spike? Was it all that perfect — a Goldilocks report?

    Here’s my take on Friday’s rally. Going into the debt ceiling crisis, there was a belief that House Speaker Kevin McCarthy couldn’t control his own Republican party. Senate Majority Leader Charles Schumer wasn’t much better off with the Democrats. Both had lost control of their parties to the extremists. That meant the United States would default on its debt. It seemed pretty logical.

    I truly believe the extremists never believed a default would mean more than a few weeks of setbacks and more brinkmanship. Who can blame them? President Joe Biden lamely floated that he could invoke the 14th Amendment to avoid this and any future debt limit fights; the amendment includes a clause that some legal scholars say overrides the statutory borrowing limit set by Congress.

    No matter what, it was pretty clear that chaos was our destiny. But when McCarthy and Biden agreed to temporarily suspend the debt ceiling and cap some federal spending in order to prevent a default, we got a deal that was even less contentious than the 2011 bargain. (The coming together brought to mind the legendary coalition of President Ronald Reagan and House Speaker Tip O’Neil in the 1980s, memorialized in Chris Matthews’ “Tip and the Gipper: When Politics Worked.”)

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  • Chip stocks AMD and Nvidia are among the most overbought stocks on Wall Street amid A.I. craze

    Chip stocks AMD and Nvidia are among the most overbought stocks on Wall Street amid A.I. craze

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