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Tag: Public Relations

  • Master Public Relations With This Comprehensive Guide | Entrepreneur

    Master Public Relations With This Comprehensive Guide | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Effective public relations can be the difference between success and failure in today’s competitive business landscape. Businesses that grasp this concept will have a distinct advantage over their counterparts. This guide takes a comprehensive approach to PR, covering everything from developing your brand narrative to crafting an effective strategy to enhance your reputation.

    At its core, public relations revolves around strategically communicating to foster mutually beneficial relationships between organizations and their intended audiences. The key objective is to shape and manage an enterprise’s reputation, image and credibility by leveraging various tools including media outreach, content creation, event management and crisis communication. A crucial element in any potent PR campaign is developing a compelling brand narrative that effectively engages your desired audience while differentiating you from competitors.

    Related: 3 Crucial First Steps You Need to Take to Nail Your PR Strategy

    Crafting a powerful brand narrative

    Crafting a powerful brand narrative requires a thoughtful approach centered around several key elements. To begin with, identifying the core values and mission of your organization is essential to creating a strong foundation for communication efforts. Additionally, a deep understanding of target audiences can help tailor messages toward their specific preferences and pain points. Highlighting unique selling propositions (USPs) that set you apart from competitors is also integral to crafting a compelling and effective brand narrative. Finally, authenticity and consistency in messaging are vital in ensuring alignment between an organization’s actions and values.

    Crafting an effective PR strategy

    For businesses seeking to cultivate trust with their audience and maintain their reputation, crafting an effective PR strategy is crucial. A fundamental component of such a strategy involves defining specific objectives. Do you aim to increase public awareness of your services/products, generate leads or enhance brand image? Targeted objectives are essential for crafting an effective PR strategy that resonates with your audience’s needs. Knowing who your target audience is provides invaluable information on their preferences, behaviors and demographics necessary for engaging them effectively. Through careful research into these details, you’ll be able to tailor messages around key themes crucial for aligning with brand narratives while addressing specific concerns of those targeted audiences.

    Effective public relations campaigns require precision in every aspect of planning and execution. One crucial component is communication: It should be concise, clear, and consistent across every channel you leverage for outreach. Get your messaging right by tailoring it specifically to your target audience’s preferences using their desired mediums — from traditional media outlets like newspapers or magazines (print) and TV/radio broadcasts (broadcast), as well as social media platforms such as Facebook or Twitter (digital) among others — ensuring maximum visibility where they are most likely present online or offline.

    Related: How to Boost Your Brand Awareness and PR Strategy

    Developing a crisis communication plan

    To successfully manage crises in business, one must be well-prepared and execute a solid crisis communication plan. This essential aspect of public relations can protect your organization’s reputation and limit damages incurred.

    Measuring the efficacy of your efforts via metrics like website traffic, social media engagement, lead generation and media coverage is vital for continual improvement. When a crisis hits, any organization must respond quickly with accurate information to the public. This is why developing a crisis communication plan beforehand is so important.

    In this plan, potential risks are identified, and response strategies for each scenario are outlined in advance. Transparency and accountability should be emphasized; owning up to mistakes and communicating the corrective measures being taken can help prevent future crises from occurring.

    Finally, messaging consistency ensures that all spokespeople are unified in their presentation of information. When navigating a crisis situation, it’s essential to be aware of how your communication efforts are being received by both the media and your audience.

    Maintaining strong relationships with journalists and industry influencers

    Stay on top of media coverage and public sentiment to gauge their effectiveness, making necessary modifications as needed. But even beyond crises, maintaining strong relationships with key journalists and industry influencers is invaluable for garnering positive news coverage that helps spread your brand message.

    Take a proactive approach by providing these individuals with relevant information about your company or sector, along with compelling story angles. Acknowledging the hard work of journalists who cover your brand is not only courteous but also essential to fostering positive relationships within the industry.

    Expressing gratitude for their support helps build rapport and increases the likelihood of future coverage. Remembering to hold appreciation as part of your PR strategy shows that you recognize how important collaboration with members of the media is in boosting visibility for your business.

    Social media

    The use of social media by companies is increasingly becoming a crucial aspect of modern public relations strategy. It allows brands to interact directly with potential customers, offering them exceptional opportunities to engage and communicate by sharing informative articles, industry updates or even just simply acknowledging feedback given from patrons. The success of this tool relies on wisely selecting appropriate platforms based around target demographics while maintaining consistency in regular posting schedules aimed at keeping online communities informed along with delivering meaningful, engaging content built upon genuine customer values.

    Related: 4 Guiding Principles for Building and Deploying a Great PR Strategy

    Building a successful brand reputation

    Effective public relations has long been heralded as one of the most powerful tools available for building a successful brand reputation. With strategies ranging from targeted messaging campaigns to social media engagement tactics, companies have numerous options for making their presence known among consumers while also enhancing customer loyalty over time.

    By paying close attention to feedback from customers while also carefully curating content and interactions across multiple channels, even small firms can achieve big results when it comes to boosting their image and maximizing impact on bottom-line performance metrics like revenue growth or share price valuation.

    In the forever-evolving world of public relations, success doesn’t just happen; organizations need to be proactive and authentic and also maintain consistency in their communication strategies. Proactivity enables businesses to get ahead of emerging trends rather than being reactive or caught off guard by unfavorable news cycles. Authenticity in PR communication establishes better relationships with stakeholders by building trust through transparent communication tactics that align with organizational values, strengthened by consistent messaging until they become ingrained into the brand identity.

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  • Facebook settlement: How to apply for some of Meta’s $725 million payout

    Facebook settlement: How to apply for some of Meta’s $725 million payout

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    If you used Facebook between May 2007 and December 2022, the social-media giant may owe you some money.

    A California judge preliminarily approved a $725 million settlement between Facebook parent Meta Platforms
    META,
    -1.01%
    and users who say the company allowed their data to be viewed or shared by third parties, notably Cambridge Analytica, without their consent.

    The judge’s approval was a precursor to the final approval hearing, which will take place in September, but people can begin submitting claims now to potentially get a cash payment.

    Who does the Facebook settlement apply to?

    The $725 million settlement applies to anybody who was a Facebook user in the U.S. between May 24, 2007 and Dec. 22, 2022. The class-action form simply states that people who were Facebook users during that period are eligible. It does not mention any required level of activity on the account.

    It’s unclear if someone with multiple Facebook accounts would be entitled to more money than a person with a single account. To find out if you are included in the settlement group, you can email info@FacebookUserPrivacySettlement.com 

    When is the deadline to submit a claim?

    The claim form must be submitted no later than Aug. 25, 2023.

    The form can be completed online or downloaded and mailed to the settlement administrator at the following address: Facebook Consumer Privacy User Profile Litigation, c/o Settlement Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103.

    How much money will you get?

    As is typical with class-action lawsuits, the amount an individual will receive is dependent on a variety of factors.

    The settlement form says the payment will vary based on how many people submit claims. Additionally, administrative costs and attorneys’ fees will be deducted from the settlement fund prior to its release.

    See also: Mark Zuckerberg’s total 2022 pay rose because of the increased use of private aircraft

    “Settlement payments will be distributed as soon as possible if the Court grants Final Approval of the Settlement and after any appeals are resolved,” the claim website notes.

    How many people does this affect?

    Because Facebook has so many users and because of the 16-year time frame for this settlement, there are millions of people who could submit a claim.

    According to data compiled by Statista, total Facebook users in the U.S. numbered roughly 240 million in 2022.

    What has Meta said about the lawsuit?

    In December 2022, Meta agreed in principle to pay the settlement. At the time, a Meta spokesman said settling the class-action suit was “in the best interest of our community and shareholders.” The company added that it had revamped its privacy approach and “implemented a comprehensive privacy program.”

    Despite agreeing to pay the settlement, “Meta expressly denies any liability or wrongdoing,” according to the lawsuit website.

    Representatives for Meta didn’t immediately respond to MarketWatch’s request for comment on this story.

    See also: NPR’s CEO sayd ‘I have lost my faith in the decision-making’ at Twitter under Elon Musk

    The settlement comes as Meta is set to announce another round of layoffs this week.

    Meta shares were down 0.95% in the early afternoon on Wednesday and have gained nearly 80% year to date, compared with the S&P 500’s
    SPX,
    -0.01%
     8.11% gain in 2023.

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  • Netflix stock falls after subscriber growth, earnings forecast miss. But it’s bouncing back on ad plans, shared-password crackdown in U.S.

    Netflix stock falls after subscriber growth, earnings forecast miss. But it’s bouncing back on ad plans, shared-password crackdown in U.S.

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    Netflix Inc.’s stock initially plunged in after-hours trading Tuesday, after the streaming giant posted weaker subscriber growth and forecast a smaller profit than Wall Street expected. But shares later recovered and crossed into positive territory on company disclosures that its new ad-supported service is a success and its crackdown on shared accounts in the U.S. is coming this quarter.

    Netflix
    NFLX,
    +0.29%
    reported that subscribers increased by 1.75 million in the first quarter of the year, missing analysts’ average estimate of 2.2 million. Netflix reported fiscal first-quarter net earnings of $1.31 billion, or $2.88 a share, compared with $3.53 a share in the year-ago quarter.

    Revenue improved to $8.16 billion from $7.87 billion a year ago. Analysts surveyed by FactSet had expected on average net earnings of $2.86 a share on revenue of $8.18 billion.

    For the second quarter, Netflix executives guided for earnings of $2.84 a share on $8.24 billion in revenue, while analysts on average were expecting earnings of $3.07 a share on sales of $8.18 billion. Netflix no longer provides guidance on subscriber additions, a sign its years of rapid growth are clearly cooling.

    Shares plunged lower than $300 in after-hours trading immediately following the release of the results, after closing with a 0.3% increase at $333.70. But shares had crossed into positive territory and were recently above $335 in the extended session.

    Netflix executives have hoped to goose their financial results with cheaper, ad-supported options and a crackdown on password sharing. In a letter to shareholders Tuesday, company executives said the ads plan in the U.S. “already has a total ARM (subscription + ads) greater than our standard plan.”

    At the same time, they disclosed a password crackdown in the U.S. will occur in the second quarter, a bit later from previous expectations.

    “We shifted out the timing of the broad launch from late Q1 to Q2,” Netflix executives wrote. “While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a
    better outcome for both our members and our business.”

    Additionally, Netflix also announced that it will end the DVD-by-mail business that launched the company into consumers’ homes. Revenue from the DVD business had declined from $911 million in 2013 to $146 million in 2022.

    “This a catch-22 environment for streaming companies as they are pivoting from chasing subscribers to chasing profits while at the same time inflation-weary consumers are reassessing their discretionary spending habits,” KPMG U.S. National Media Leader Scott Purdy said, in assessing the results. “Today’s figures, a bellwether for the industry at large, signal that winter is coming for the consumer. All of the subsidies are ending. Consumers can expect to be hit with ads, higher prices, and password sharing crackdown.”

    Expectations among investors heading into Netflix’s quarterly report were muted. The focus was on Netflix’s switch toward better monetization with an ad-supported service and a rolling crackdown on shared accounts. Analysts in particular were closely watching the performance of Netflix’s new “Basic with Ads” plan ($6.99 a month) and its effectiveness in stanching the defection of subscribers to competing services from Walt Disney Co.
    DIS,
    +0.63%
    and Apple Inc.
    AAPL,
    +0.75%    .

    Netflix’s rollout of the ad-supported tier could also have a temporary impact on margins: Netflix reported an operating margin of 21%, compared with about 25% in the year-ago quarter.

    At the same time, Netflix put an end to paid shared accounts in some Latin American countries last year, and expanded plans to do so Canada, New Zealand, Portugal and Spain in February.

    “In our view, the password-sharing crackdown will result in a greater number of subs as well as revenue because the primary account holder will either pay an additional fee for members who have moved out of the household or those sharing accounts become full subscribers,” Bank of America analysts said in a recent note.

    Shares of Netflix have climbed 12% so far this year, while the broader S&P 500 index
    SPX,
    +0.09%
    has advanced 8%.

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  • Why Snap is suddenly eligible to join the S&P 500

    Why Snap is suddenly eligible to join the S&P 500

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    Snap Inc.’s initial public offering led to changes that barred the company and others like it from joining major stock indexes, but at least one major index provider has decided to drop those limitations after less than six years.

    S&P Dow Jones Indices announced Monday afternoon that a 2017 rule barring companies with multiple share classes from joining indexes such as the S&P 500
    SPX,
    +0.33%
    has been dropped. The move comes after the index manager consulted with “market participants” at the end of last year to discuss several potential changes to the policy.

    Snap
    SNAP,
    +1.78%
    was the poster child for the initial change, after the parent company of the Snapchat mobile app went public in 2017 by selling a class of shares with no voting rights. That unprecedented move ensured that co-founders Evan Spiegel and Bobby Murphy would retain absolute power over their company even while selling shares to the public.

    Snap’s move was an acceleration of an approach used by a generation of Silicon Valley tech companies to ensure that founders retained control of their companies even while selling shares to the public. Companies such as Facebook parent Meta Platforms Inc.
    META,
    -1.19%
    and Google parent Alphabet Inc.
    GOOGL,
    -2.66%
    GOOG,
    -2.78%
    used similar structures that provided their leaders with special shares that included increased voting rights, which Snap took further by offering no voting rights.

    From 2017: Snap backlash, Facebook capitulation won’t stop founder-friendly stock structures

    In response, FTSE Russell established rules about putting votes in the public’s hands while selling stock, and S&P Dow Jones Indices completely barred all companies that had multiple classes of stock from joining its core indexes. While FTSE Russell’s rule — which requires that at least 5% of votes rest in the hands of public investors — remains, S&P Dow Jones Indices will now drop its rule entirely, after roughly 80% of respondents voted in favor of a change in 2017.

    There were other options besides completely dropping the rule. Participants in the consultation process were given several options and asked to rank them, including barring companies that only offer nonvoting stock to the public — such as Snap — or allowing companies that establish “sunset” provisions that would eventually revert all shares to equal voting rights.

    Related: Investors want change, but founders like Mark Zuckerberg hold them off

    Snap declined to comment Monday afternoon.

    The change to allow all companies with multiple share classes to join the S&P Composite 1500 and its multiple component indexes is effective as of Monday, S&P Dow Jones Indices announced, though no changes were immediately made to any index. Tracking stocks will still not be eligible for inclusion, according to the announcement.

    For more: As Snap melts down, its founders make sure to protect the people who matter — themselves

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  • 10 dividend stocks yielding at least 4.5% that are rated ‘buy’ by most analysts

    10 dividend stocks yielding at least 4.5% that are rated ‘buy’ by most analysts

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    During a period of high interest rates, it might be more difficult to impress investors with dividend stocks. But the stocks can have an important advantage over the long term. The dividend payouts can increase over the years, helping to push share prices higher over time.

    When considering stocks for dividend income, yield shouldn’t be the only thing you consider. If a stock’s price has tumbled because investors are worried about the company’s business prospects, the dividend yield might be very high. A double-digit yield might mean investors expect to see a cut to the dividend soon.

    There are many ways to look at companies’ expected ability to maintain or raise their dividend payouts. But one can also take a simple approach to begin researching stock choices.

    At the moment, you can get a bank CD with a yield of close to 5% pretty easily. Here’s a look at current yields for CDs and U.S. Treasury securities and an approach for laddering them not only to protect your cash but to hedge against interest-rate risk.

    For investors who would rather aim for long-term growth to go along with dividend income, or take a relatively conservative approach to growth while reinvesting dividends, a screen of stocks in the S&P 500
    SPX,
    +0.33%
    produces only 10 stocks with dividend yields of 4.5% or higher with majority “buy” or equivalent ratings among analysts polled by FactSet. Here they are, sorted by dividend yield:

    Company

    		 Ticker

    		 Dividend Yield

    		 Expected payout increase through 2025

    		 Share “buy” ratings

    		 April 16 price

    		 Consensus price target

    		 implied 12-month upside potential
    Comerica Inc.

    		 CMA,
    +4.00%         		6.56%

    		 10%

    		 58%

    		 $43.30

    		 $60.53

    		 40%
    Citizens Financial Group Inc.

    		 CFG,
    +4.19%         		5.77%

    		 12%

    		 74%

    		 $29.10

    		 $39.29

    		 35%
    Healthpeak Properties Inc.

    		 PEAK,
    +2.33%         		5.71%

    		 9%

    		 60%

    		 $21.01

    		 $27.69

    		 32%
    Hasbro Inc.

    		 HAS,
    +1.28%         		5.34%

    		 8%

    		 69%

    		 $52.40

    		 $69.27

    		 32%
    Philip Morris International Inc.

    		 PM,
    +0.46%         		5.11%

    		 11%

    		 67%

    		 $99.48

    		 $113.56

    		 14%
    Realty Income Corp.

    		 O,
    +1.30%         		5.04%

    		 7%

    		 56%

    		 $60.77

    		 $70.00

    		 15%
    Fifth Third Bancorp

    		 FITB,
    +3.33%         		4.99%

    		 3%

    		 72%

    		 $26.44

    		 $34.55

    		 31%
    VICI Properties Inc.

    		 VICI,
    +1.58%         		4.82%

    		 12%

    		 95%

    		 $32.35

    		 $37.73

    		 17%
    Organon & Co.

    		 OGN,
    +1.01%         		4.71%

    		 5%

    		 55%

    		 $23.80

    		 $31.89

    		 34%
    Iron Mountain Inc.

    		 IRM,
    +0.82%         		4.69%

    		 15%

    		 78%

    		 $52.76

    		 $56.00

    		 6%
    Source: FactSet

    Click on the ticker for more about each company.

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

    The dividend yields for this group of 10 companies are based on current annual regular payout rates, with all paying quarterly except for Realty Income Corp.
    O,
    +1.30%    ,
    which pays monthly.

    These two oil and natural gas producers would have passed the above screen based on their most recent dividend payments and analysts’ sentiment, however, they pay a combined fixed-plus-variable dividend every quarter, with the fixed portion relatively low:

    • Shares of Pioneer Natural Resources Co.
      PXD,
      -0.77%
      closed at $230 on April 14. Among analysts polled by FactSet, 59% rate the stock a “buy” or the equivalent, and the consensus price target is $257.42. The company pays a fixed quarterly dividend of $1.10 a share, which would make for a dividend yield of only 1.91%. However, the most recent variable quarterly dividend was $4.48 a share, for a combined quarterly dividend of $5.58, which would translate to an annualized dividend yield of 9.70%. The consensus estimate for dividends in 2025 is $4.63 — the analysts are only estimating the fixed portion of the dividend. Pioneer has held preliminary merger discussions with Exxon Corp.
      XOM,
      -1.16%      ,
      according to a Wall Street Journal report.

    • Devon Energy Corp.’s
      DVN,
      -0.72%
      stock closed at $55.70 on April 14. The shares are rated “buy” or the equivalent by 55% of analysts and the consensus price target is $67.66. The fixed portion of Devon’s quarterly dividend is 20 cents a share, for an annualized dividend yield of 1.44%. The variable portion of the most recent quarterly dividend was 69 cents a share. The total payout of 89 cents would make for an annual dividend yield of 6.39%. Analysts expect the fixed portion of annual dividends to total $3.61 in 2025, according to FactSet.

    Don’t miss: Buffett is buying in Japan. This overseas value-stock fund is also making bets there. Is it a good way to diversify?

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

    Microsoft Looks to ChatGPT AI to Transform Its Digital Ad Business

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    Microsoft Looks to ChatGPT AI to Transform Its Digital Ad Business

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  • Chicago to host 2024 Democratic convention

    Chicago to host 2024 Democratic convention

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    Chicago will host the 2024 Democratic National Convention, the Democratic National Committee said Tuesday, bringing the event back to the city for the first time since 1996.

    The Democratic Party seems to be closing ranks behind President Joe Biden as its 2024 nominee, although Marianne Williamson and Robert F. Kennedy Jr. are mounting long-shot challenges. The president said Monday that he’s “planning on running” but wasn’t prepared to make a formal announcement yet.

    Read: As Biden says he’s ‘planning on running,’ here are the potential 2024 Republican candidates.

    “The Midwest reflects America and will give Democrats an opportunity to showcase some of President Biden and Vice President Harris’s most significant accomplishments for American families,” DNC Chair Jaime Harrison said in a statement. Chicago beat out cities including New York and Atlanta in the competition to host the convention.

    A water taxi plies the Chicago River.


    Getty Images

    Biden said in a statement that the city is a “great choice” for the event and that his party will “showcase our historic progress including building an economy from the middle out and bottom up, not from the top down.”

    Republicans are planning to host their 2024 convention in Milwaukee.

    Read more: Republicans pick Milwaukee to host 2024 national convention

    Chicago hosted the Democratic convention most recently in 1996, when President Bill Clinton was renominated. The 1968 Democratic convention in Chicago was marked by violent clashes between police and antiwar demonstrators.

    Chicago Mayor-elect Brandon Johnson called his city “unmatched when it comes to hosting events of this scale.”

    Johnson said: “I look forward to working closely with the DNC to facilitate a spectacular convention that showcases Chicago’s diverse culture, our beautiful lakefront, our renowned hospitality sector, and our best asset: our amazing people.”

    The Democratic convention is scheduled for Aug. 19-22, 2024.

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  • ‘An evil act of targeted violence’: Shooting in downtown Louisville bank leaves 5 dead, 9 wounded

    ‘An evil act of targeted violence’: Shooting in downtown Louisville bank leaves 5 dead, 9 wounded

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    LOUISVILLE, Ky. — A Louisville bank employee armed with a rifle opened fire at his workplace Monday morning, killing four people — including a close friend of Kentucky’s governor — while livestreaming the attack on Instagram, authorities said.

    Police arrived as shots were still being fired inside Old National Bank and killed the shooter in an exchange of gunfire, Louisville Metro Police Department Chief Jacquelyn Gwinn-Villaroel said. The city’s mayor, Craig Greenberg, called the attack “an evil act of targeted violence.”

    The shooting, the 15th mass killing in the country this year, comes just two weeks after a former student killed three children and three adults at a Christian elementary school in Nashville, Tennessee, about 160 miles to the south. That state’s governor and his wife also had friends killed in that shooting.

    In Louisville, the chief identified the shooter as 25-year-old Connor Sturgeon, who she said was livestreaming during the attack.

    “That’s tragic to know that that incident was out there and captured,” she said.

    Meta
    META,
    -0.62%    ,
    the company that owns Facebook and Instagram, said in a statement that it had “quickly removed the livestream of this tragic incident this morning.”

    Social company companies have imposed tougher rules over the past few years to prohibit violent and extremist content. They have set up systems to remove posts and streams that violate those restrictions, but shocking material like the Louisville shooting continues to slip through the cracks, prompting lawmakers and other critics to lash out at the technology industry for slipshod safeguards and moderation policies.

    Nine people, including two police officers, were treated for injuries from the Louisville shooting, University of Louisville Hospital spokeswoman Heather Fountaine said in an email. One of the officers, 26-year-old Nickolas Wilt, graduated from the police academy on March 31. He was in critical condition after being shot in the head and having surgery, the police chief said. At least three patients had been discharged.

    Kentucky Gov. Andy Beshear said he lost one of his closest friends in the shooting — Tommy Elliott — in the building not far from the minor league ballpark Louisville Slugger Field and Waterfront Park.

    “Tommy Elliott helped me build my law career, helped me become governor, gave me advice on being a good dad,” said Beshear, his voice shaking with emotion. “He’s one of the people I talked to most in the world, and very rarely were we talking about my job. He was an incredible friend.”

    Also killed in the shooting were Josh Barrick, Jim Tutt and Juliana Farmer, police said.

    “These are irreplaceable, amazing individuals that a terrible act of violence tore from all of us,” the governor said.

    It was the second time that Beshear was personally touched by a mass tragedy since becoming governor.

    In late 2021, one of the towns devastated by tornadoes that tore through Kentucky was Dawson Springs, the hometown of Beshear’s father, former two-term Kentucky Gov. Steve Beshear. Andy Beshear frequently visited Dawson Springs as a boy and has talked emotionally about his father’s hometown.

    Beshear spoke as the investigation in Louisville continued and police searched for a motive. Crime scene investigators could be seen marking and photographing numerous bullet holes in the windows near the bank’s front door.

    As part of the investigation, police descended on the neighborhood where the suspect lived, about 5 miles south of the downtown shooting. The street was blocked as federal and local officers talked to residents. One home was cordoned off with caution tape. Kami Cooper, who lives in the neighborhood, said she didn’t recall ever meeting the suspect but said it’s an unnerving feeling to have lived on the same street as someone who could do such a thing.

    “I’m almost speechless. You see it on the news but not at home,” Cooper said. “It’s unbelievable, it could happen here, somebody on my street.”

    A man who fled the building during the shooting told WHAS-TV that the shooter opened fire with a long rifle in a conference room in the back of the building’s first floor.

    “Whoever was next to me got shot — blood is on me from it,” he told the news station, pointing to his shirt. He said he fled to a break room and shut the door.

    Deputy Police Chief Paul Humphrey said the actions of responding police officers undoubtedly saved lives.

    “This is a tragic event,” he said. “But it was the heroic response of officers that made sure that no more people were more seriously injured than what happened.”

    Just a few hours later and blocks away, an unrelated shooting killed one man and wounded a woman outside a community college, police said.

    The 15 mass shootings this year are the most during the first 100 days of a calendar year since 2009, when 16 had occurred by April 10, according to a mass killings database maintained by The Associated Press and USA Today in partnership with Northeastern University.

    Going back to 2006, the first year for which data has been compiled, the years with the most mass killings were 2019 and 2022, with 45 and 42 mass killings recorded during the entire calendar year. The pace in 2009 slowed later in the year, with 32 mass killings recorded that year.

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  • Progressive Brandon Johnson wins tight Chicago mayoral race over moderate Democrat Paul Vallas

    Progressive Brandon Johnson wins tight Chicago mayoral race over moderate Democrat Paul Vallas

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    CHICAGO — Brandon Johnson, a union organizer and former teacher, was elected as Chicago’s next mayor Tuesday in a major victory for the Democratic Party’s progressive wing as the heavily blue-leaning city grapples with high crime and financial challenges.

    Johnson, a Cook County commissioner endorsed by the Chicago Teachers Union, won a close race over former Chicago schools CEO Paul Vallas, who was backed by the police union. Johnson, 47, will succeed Lori Lightfoot, the first Black woman and first openly gay person to be the city’s mayor.

    Lightfoot became the first Chicago mayor in 40 years to lose her reelection bid when she finished third in a crowded February contest.

    Johnson’s victory in the nation’s third-largest city topped a remarkable trajectory for a candidate who was little known when he entered the race last year. He climbed to the top of the field with organizing and financial help from the politically influential Chicago Teachers Union and high-profile endorsements from progressive Sens. Bernie Sanders and Elizabeth Warren. Sanders appeared at a rally for Johnson in the final days of the race.

    Taking the stage Tuesday night for his victory speech, a jubilant Johnson thanked his supporters. He recalled growing up in a poor family, teaching at a school in Cabrini Green, a notorious former public housing complex, and shielding his kids from gunfire in their west side neighborhood.

    “Chicago, tonight is just the beginning,” Johnson told the crowd. “With our voices and our votes, we have ushered in a new chapter in the history of our city.”

    He promised that under his administration, the city would look out for everyone, regardless of how much money they have, whom they love or where they come from.

    “Tonight is the beginning of a Chicago that truly invests in all of its people,” Johnson said.

    It was a momentous win for progressive organizations such as the teachers union, with Johnson winning the highest office of any active teachers union member in recent history, leaders say. It comes as groups such as Our Revolution, a powerful progressive advocacy organization, push to win more offices in local and state office, including in upcoming mayoral elections in Philadelphia and elsewhere.

    Speaking to supporters Tuesday night, Vallas said that he had called Johnson and that he expected him to be the next mayor. Some in the crowd seemed to jeer the news, but Vallas urged them to put aside differences and support the next mayor in “the daunting work ahead.”

    “This campaign that I ran to bring the city together would not be a campaign that fulfills my ambitions if this election is going to divide us,” Vallas said.

    He added that he had offered Johnson his full support in the transition.

    The contest surfaced longstanding tensions among Democrats, with Johnson and his supporters blasting Vallas — who was endorsed by Sen. Dick Durbin of Illinois, the chamber’s second-ranking Democrat — as too conservative and a Republican in disguise.

    Johnson and Vallas were the top two vote-getters in the all-Democrat but officially nonpartisan February race, which moved to the runoff because no candidate received over 50%. Both candidates have deep roots in the Democratic Party, though with vastly different backgrounds and views.

    Johnson, who is Black, grew up poor and is now raising his children in one of Chicago’s most violent neighborhoods. After teaching middle and high school, he helped mobilize teachers, including during a historic 2012 strike through which the Chicago Teachers Union increased its organizing muscle and influence in city politics.

    Vallas, who finished first in the February contest, was the only white candidate in that nine-person field. A former Chicago budget director, he later led schools in Chicago, New Orleans, Philadelphia and Bridgeport, Connecticut. He has run unsuccessfully for office multiple times, including a 2019 bid for Chicago mayor.

    Among the biggest disputes between Johnson and Vallas was how to address crime. Like many U.S. cities, Chicago saw violent crime increase during the COVID-19 pandemic, hitting a 25-year high of 797 homicides in 2021, though the number decreased last year and the city has a lower murder rate than others in the Midwest, such as St. Louis.

    Vallas, 69, said he would hire hundreds more police officers, while Johnson said he didn’t plan to cut the number of officers, but that the current system of policing isn’t working. Johnson was forced to defend past statements expressing support for “defunding” police — something he insisted he would not do as mayor.

    But Johnson argued that instead of investing more in policing and incarceration, the city should focus on mental health treatment, affordable housing for all and jobs for youth. He has proposed a plan he says will raise $800 million by taxing “ultrarich” individuals and businesses, including a per-employee “head tax” on employers and an additional tax on hotel room stays. Vallas says that so-called “tax-the-rich” plan would be a disaster for the city’s recovering economy.

    Resident Chema Fernandez, 25, voted for Johnson as an opportunity to move on from what he described as “the politics of old.” He said he saw Vallas as being in line with previous mayors such as Rahm Emanuel, Lightfoot and Richard M. Daley, who haven’t worked out great for places like his neighborhood on the southwest side, which has seen decades of disinvestment.

    “I think we need to give the opportunity for policies that may actually change some of our conditions,” Fernandez said.

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

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

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

    “The idea that you could overlay the physical world with things from the digital world could greatly enhance people’s communication, people’s connection,” Cook told GQ, without confirming the rumored June 5 announcement of Apple’s
    AAPL,
    +0.77%
    Reality Pro headset.

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

    GOOG,
    +0.88%
    Google, Microsoft Corp.
    MSFT,
    -0.37%    ,
    Snap Inc.
    SNAP,
    +0.27%
    and others.

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


    — Tim Cook

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

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

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

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

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

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

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  • 3 Ways to Connect With Every Stakeholder in Your Company | Entrepreneur

    3 Ways to Connect With Every Stakeholder in Your Company | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Building and maintaining strong relationships with stakeholders, including customers, employees and investors, is essential for success. Companies that invest in building these relationships can benefit from improved customer loyalty, increased employee engagement and better access to funding and support from investors.

    Public relations is one key tool companies can use to build and maintain these relationships. Public relations (PR) is managing communication between an organization and its stakeholders to create and maintain a positive image of the organization. By leveraging various PR strategies and tactics, companies can effectively communicate their brand message and values to their stakeholders, build trust and credibility and strengthen relationships over time.

    Related: You Can Create Demand for Your Business With the Right PR Strategy. Here’s How.

    Building and protecting your brand reputation

    Reputation is critical to business success, as it can influence consumer purchasing decisions, employee engagement and investor sentiment. PR professionals work to ensure that a company’s values and messaging align with the needs and wants of its target audience and that positive messages are communicated effectively.

    PR professionals can work to secure positive media coverage for their clients, either through earned media (achieved through newsworthiness or media pitches) or through paid media (coverage achieved through advertising). Positive media coverage can help to establish a business’s credibility and authority in its industry and can help to build trust and rapport with its stakeholders.

    Businesses can build relationships and foster trust with their target audience by crafting compelling social media content and engaging with customers and other stakeholders on social media channels. Effective crisis management can help mitigate the negative impact on a company’s reputation and minimize damage to stakeholder relationships.

    Related: How to Make the Most of Your Public Relations

    Engaging with customers

    Another important role of public relations is to engage with customers. By engaging with customers through social media, press releases and events, businesses can build strong customer relationships, improving loyalty, driving sales and increasing customer retention. In addition, PR professionals can help businesses to craft messaging and content that resonates with their target audience and develops a sense of brand loyalty.

    Social media is a business’s most powerful customer engagement tool. Companies can connect with customers personally through social media, responding to comments and feedback and sharing valuable information about their products and services. In addition, by developing a solid social media presence, businesses can increase their brand awareness and create a loyal following of customers who are invested in their success.

    Press releases can communicate important news and updates about a business, such as new product launches, partnerships or awards. By sharing this news with customers, companies can build excitement and generate interest in their brand.

    Events, such as product launches or customer appreciation events, can also be used to engage with customers. By allowing customers to interact with you in person, you can build stronger relationships and create a sense of community around your brand.

    Attracting and retaining investors

    Public relations can help to attract and retain investors by presenting a positive image of the company and communicating its strengths and potential to the public. Businesses can secure funding and support for growth and development by building relationships with investors.

    One of the key strategies PR professionals use to attract investors is increasing a company’s share of voice and helping its executives with their thought leadership content. Thought leadership involves positioning key executives or subject matter experts within the company as thought leaders in their industry. By sharing valuable insights and expertise with their peers and stakeholders, thought leaders can help to build the company’s reputation and establish its authority in its industry. This can help attract investors looking for companies with strong leadership and innovative ideas.

    Investor relations are used to help retain investors through managing communication between your company and investors and providing regular updates and information about its financial performance, growth prospects and strategic initiatives. By keeping investors informed and engaged, businesses can build trust and credibility and attract new investors.

    Related: How PR Can Attract Investors and Add Value to Your Startup

    Communicating with employees

    Effective employee communication can lead to higher morale, loyalty and productivity. By using PR strategies and tactics to communicate with employees, businesses can ensure that they feel informed, valued and engaged.

    Internal communications can take many forms, including newsletters and email updates. By providing regular updates and information about company news, events and initiatives, businesses can help employees feel connected to the company and invested in its success.

    Employee engagement campaigns can be used to encourage employees to share their ideas, feedback and opinions about the company and can help businesses to build a culture of innovation and collaboration. Businesses can create a more engaged and productive workforce by empowering employees to share their ideas and take ownership of their work.

    By leveraging various PR strategies and tactics, businesses can effectively communicate their brand message and values to their stakeholders, build trust and credibility and strengthen relationships over time. From building and protecting brand reputation to engaging with customers, communicating with employees and attracting and retaining investors, PR can help businesses to achieve their goals and thrive in today’s competitive business environment.

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    Kristen Shea

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

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

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

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

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


    — Superior Court Judge Eric Davis

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

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

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

    The company sued Fox News and its parent, Fox Corp.
    FOX,
    +1.36%

    FOXA,
    +1.13%    ,
    which shares ownership with News Corp
    NWS,
    +1.99%

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

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

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

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

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

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

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

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

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

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

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

    MarketWatch contributed.

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  • How to Select the Right Kind of PR Representation in the Current Economic Climate | Entrepreneur

    How to Select the Right Kind of PR Representation in the Current Economic Climate | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Companies looking to partner with external public relations (PR) agencies to help manage communications and brand reputation should know a few things. Not all public relations is the same, and each has its rightful place in the matrix, but it’s essential for C-suite decision-makers to know the difference.

    What often feels like a daunting task to identify multiple firms, conduct due diligence calls, review proposals and initiate follow-up meetings before a decision is ever made may be made easier to pull better candidates in step one. Here are the key differentiators that companies should consider when selecting an agency, with a priority on today’s economic climate.

    More agencies than ever are offering additional services as clients, primarily led by chief marketing officers (CMOs), are beholden to more data-driven results and need to do more with less. If a company is going through rounds of layoffs, it’s a tougher sell to keep outside vendors unless they can show value.

    While I previously discussed Reputation + and how that supports value and growth-focused organizations, public relations professionals from contractors through large agencies are revamping core offerings.

    Here is a breakdown of five different types of external public relations professionals, what they specialize in and who they are a “right” fit for.

    Related: Here’s One Easy Way to Establish Yourself as a Thought Leader in Your Industry

    1. Publicists

    During approximately one-third of the time potential partners get to us, they are looking for a personal publicist versus a full-scale strategic communications team.

    A publicist is someone who typically works 1:1 with an individual who has a sizeable personal brand and does not typically work for another organization. This may be a highly visible influencer, broadcast personality, author, artist, musician, etc.

    Publicists are exceptional at securing personal brand-earned media, especially broadcast tours, feature articles and other high-profile moments where the personality is the main story. It takes a nuanced skill set to represent a personality, and publicists should be the first stop if PR is just for “you.”

    These pros frequently work on a monthly retainer but may be available to do one-off moments like a TV or podcast tour.

    Related: How to Secure Game-Changing Media Coverage for Your Product or Service

    2. Media relations, Contractors and Freelancers

    This category sits just before reaching a small or boutique agency profile. I consider this one of the most important distinctions because almost every time someone engages with our agency in place of different representation, they communicate dissatisfaction around what is, at its heart, strategic partnership.

    The professionals in this category are phenomenal to work with if both parties fully understand the scope.

    Most freelancers and contractors are “pitchers,” either utilizing pre-packaged brand stories or offering some modifications and creativity on a brand’s editorial and messaging to secure a predetermined amount of earned media.

    They can do more if a brand can provide them with as much completed work as possible. This is because they’re one-person businesses and don’t have team members to support or delegate to. If they can spend at least 70 percent of their time conducting media outreach, they can deliver. However, if they have to cut from that time to do strategy, ideation, writing, editing, design or owned media, it drastically cuts into deliverables.

    And that is where the breakdown usually occurs. These budgets are much more brand-friendly, especially for startups or those with a smaller marketing budget. Both parties must understand what is possible with the scope and budget available.

    These pros also typically work on a monthly retainer but may be available to do one-off PR moments, like a brand launch or a more significant scope project (with enough planning time).

    3. Strategic communications

    This is our personal sweet spot and is often the perfect mix for brands with a dedicated marketing budget (including a CMO or communications leader) who need a team to manage key messages, narrative development, media relationship growth, earned media, thought leadership and owned media.

    Strategic communications firms can come in various sizes but most often provide full-service support with personalized strategies for each client.

    It’s important to look at industry-specific experience when partnering at this level. It is because every industry has unique challenges, trends and players. An agency with experience in a particular industry is better equipped to navigate these intricacies and create targeted campaigns that resonate with the target audience.

    Industry-specific experience also allows for a deeper understanding of a company’s competition and helps the agency craft strategies that can give their client a competitive edge. Moreover, a PR agency with industry-specific experience has established relationships with key media personnel, influencers, and stakeholders, which is crucial when securing media coverage and amplifying the client’s message. In summary, industry-specific experience ensures that the PR agency can create an effective campaign that meets the client’s needs and delivers measurable results.

    These professionals almost always exclusively operate on a monthly or annual retainer and rarely do one-off moments unless the scope is large enough to justify onboarding an entire account team.

    Related: 7 Ways to Build Strong PR for Your Personal Brand

    4. Public affairs

    Most of the time, companies that need a public affairs (PA) agency realize it right away. Still, there are times we get approached about this type of work and have to recommend our peers who specialize in this area.

    Companies that need PA representation often fall under one of three categories: 1) advocacy and coalition building, 2) government relations or 3) regulatory and policy issues.

    It means you may be involved in heavily regulated industries, like healthcare, energy and finance or need to build relationships with key government officials or policymakers. These types of agencies are experts at building third-party coalitions, educating consumers on various issues that may impact them at a local or personal level and help to mobilize others advocating for changes in policy or regulations.

    Just like media relations excel because of strong journalism relationships, so do PAs who know key stakeholders in politics, organizations and other important decision-makers that impact a brand.

    Budgets may vary widely depending on the scope, local, state or national, though almost all work on a large budget project basis or long-term retainer as an organization’s agency of record.

    5. Crisis communications

    If you know your brand is constantly under stakeholder scrutiny, is on deadline with a current crisis or just wants to be prepared should one ever occur, this is the type of agency you need.

    A crisis today can range from disinformation campaigns to product recalls to negative national media or social media coverage. A primary benefit of working with a sector-specific crisis firm is that they have a deep understanding of the challenges and sensitivities of the industry and know how to tailor messages (both in terms of who should deliver said messages and prioritization of messages) and tailor crisis strategies for every individual instance.

    Composed primarily of senior-level strategists, they likely have a wealth of experience managing crises in your industry — and know how to do it to meet the speed of the threat or issue. Any brand knows that when a crisis happens, time is of the essence. The ability to quickly mobilize a team who are already familiar with the industry and external sources in play enables a targeted crisis response plan to be executed quickly.

    When looking at budgets, these agencies will be on the higher end of the PR spectrum. Still, effective crisis management can go a long way toward preserving a brand’s reputation and mitigating financial damages.

    Related: 5 Lessons Entrepreneurs Can Learn About Preparing for Crisis Communications

    Here’s a bonus

    Once you’ve decided on the type of agency that is a fit for your brand, here are the things you should have on hand to help determine who is the best fit:

    • Research the potential partners — Once you initiate communication, a good PR pro is also researching you and your brand. Things to look for: previous wins, track record of success, communications styles and account team background.
    • Define your goals and expectations — If you don’t have an RFP available for an individual or agency, that’s okay, but you should be able to provide an idea of what you need. They take this information to use when building out your proposal, including scope and budget.
    • How goals are tracked and shared — Every organization is different and needs goals communicated uniquely. Whether you use OKRs, KPIs or other metrics, talk about this upfront in initial conversations and negotiations so it’s built in as soon as a team onboards.

    Choosing the right PR representation for your brand is a critical decision with long-lasting implications. Investing time and resources in understanding the different types of agencies and their approach to PR can help you make an informed decision and find a partner that aligns with your brand’s goals and values. A good PR agency can help your brand reach new heights and build meaningful connections with your target stakeholders. So take your time, do your research, and choose your PR agency carefully – your brand’s reputation and success depend on it.

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    Sarah Evans

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  • Disney eliminates metaverse division in cost-cutting purge: report

    Disney eliminates metaverse division in cost-cutting purge: report

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    The metaverse is among the first victims of Walt Disney Co.’s cost-cutting purge.

    The Magic Kingdom is shutting down its next-generation storytelling and consumer-experiences unit, the small division that was developing metaverse strategies, as part of a plan to slash 7,000 jobs, according to a Wall Street Journal report on Tuesday.

    Disney…

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  • How First Republic stock’s tailspin started and why it hasn’t stopped

    How First Republic stock’s tailspin started and why it hasn’t stopped

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    Shortly after Silicon Valley Bank disclosed on March 8 that it was running short of cash and needed to raise capital, First Republic Bank’s epic stock slide began.

    The stock
    FRC,
    -15.47%
    has lost 90% of its value in less than two weeks, hitting an all-time low of $12.18 a share on Monday.

    Supportive comments from Treasury Secretary Janet Yellen helped it snap back on Tuesday, but it’s hovering between positive and negative territory on Wednesday as investors await a key Federal Reserve decision on interest rates.

    First Republic finds itself in a tough spot with a low share price and fresh debt downgrades and not even efforts to inject $30 billion into the company’s deposits in a scheme backed by JPMorgan Chase & Co.
    JPM,
    -2.58%
    and a backstop from the U.S. Federal Reserve seem to be helping.

    The bank’s troubles stem from its overlap both in clientele and parts of its balance sheet with doomed Silicon Valley Bank, which is being sold off this week by the Federal Deposit Insurance Corp. after it officially failed on Friday, March 10. Silicon Valley Bank suffered a classic run on a bank, when depositors, nervous that it needed to raise capital, yanked their deposits.

    First Republic has suffered the same deposit flight.

    As a San Francisco bank with a focus on serving high-end clients, First Republic has acted as wealth manager for the greater Silicon Valley region of executives, managing directors and startup CEOs, as well as their counterparts on the East Coast.

    The list incudes Facebook
    META,
    -1.16%
    Founder Mark Zuckerberg, who has a large mortgage courtesy of First Republic, as the Wall Street Journal has reported. Few of its loans ever sour — it had $213 billion in assets at the end of 2022 and $176 billion in deposits.

    With its sophisticated lending products and access to the technology startup world, Silicon Valley Bank was also known for its a customer base from the venture capital and private equity world. 

    Also Read: 24 bank stocks that contrarian bottom-feeders can feast on now

    Those well-heeled clients of both banks started running into problems as interest rates rose last year, pundits warned of an economic slowdown and investors switched to a risk-off strategy of conserving cash and containing costs.

    The collapse of FTX and strain in the crypto world also fed the need for cold, hard government-backed currency. Rising interest rates made it more expensive to borrow and put a chill on the deal-making environment.

    All of this and other factors led to a drain on deposits at Silicon Valley Bank and others as it faced “elevated client cash burn” at a rate that was double pre-2021 levels, even as venture capital and private equity funds were slowing down their capital raising activities, the company said in an ill-fated mid-quarter report.

    On March 8 after the market close, Silicon Valley Bank said it planned to sell $2.25 billion in common stock and a type of preferred stock, with one of its major clients, private equity firm General Atlantic, in line to buy $500 million worth. Goldman Sachs Group Inc.
    GS,
    -1.14%
    was handling the deal.

    The company also disclosed that it had lost $1.8 billion on the sale of $21 billion in available-for-sale securities on its balance sheet to cover deposit withdrawals.

    It was this last part that caused big trouble for First Republic. Not only did its clientele overlap with Silicon Valley Bank, its holdings included some of the same securities that Silicon Valley Bank sold at a loss.

    Wall Street investors quickly started bidding down shares of First Republic and other regional banks and the credit rating agencies moved in, cutting the bank’s rating from investment grade deep into junk in just a few days.

    None of this helped First Republic hold on to its deposits.  

    As one longtime banking official said recently, money from Silicon Valley types typically comes in the form of uninsured deposits, which means they’re in excess of the $250,000 that the FDIC will guarantee if a bank goes out of business. This so called hot-money is great for banks when times are good, but can move away quickly if the environment changes.

    “When hot money gets nervous, it runs,” former FDIC chairman Bill Isaac told MarketWatch recently.

    While an unprecedented effort on March 16 by 11 banks to inject $30 billion into First Republic’s deposits temporarily provided a lift to its stock, the move apparently wasn’t enough.

    First Republic said last Thursday that it had borrowed between $20 billion and $109 billion from the Federal Reserve during that week. It also increased short-term borrowing from the Federal Home Loan Bank by $10 billion at a rate of 5.09%.

    Jefferies analyst Ken Usdin said the numbers revealed that First Republic’s total deposits had dropped by up to $89 billion in the week ended March 17 past week—or about three times more than the $30 billion injection from the bank.

    “With [First Republic’s] earnings profile clearly impaired, the new deposits effectively bridge the estimated $30.5 billion of uninsured deposits still on [the bank’s] balance sheet, providing time for [it] to likely explore a sale,” Usdin said.

    Janney Montgomery Scott analyst Tim Coffey said First Republic’s stock drop in recent days reflects uncertainty around what a potential second bailout would look like, or how the bank’s balance sheet is faring after a steep run in deposits and the falling value of its long-dated securities.

    Another unknown is the company’s latest Tier 1 capital Ratio, a key measure of a bank’s balance sheet strength.

    Like Silicon Valley Bank, First Republic’s balance sheet has had more than the usual exposure to long-dated securities, which have been falling in value as interest rates rise. 

    A typical mix for a bank of comparable size is to hold about 72% of securities as available for sale. The remaining 28% are held to maturity. First Republic’s mix is reversed with 12% available for sale and 88% held to maturity.

    The bank’s mix of longer-dated assets now commands a lower market value, given where interest rates are. The bank’s emphasis on long-dated securities provided a better return when interest rates were near zero, but they have been a liability in the current environment.

    “They’ve had duration risk where the value of their securities started going down as interest rates rose,” Coffey told MarketWatch.

    Another problem for First Republic is that many of those long-dated securities are in the mortgage business, which has been ailing as interest rates rise.

    Plenty of questions remain about First Republic’s situation and whether it could have been avoided. The challenges facing First Republic as well as the demise of Silicon Valley Bank and Signature Bank will be the focus of hearings on Capitol Hill next week.

    Wall Street is also awaiting comments from the U.S. Federal Reserve when it updates its interest rate policy later on Wednesday.

    And JPMorgan Chase continues to work with First Republic on a potential bailout, even as the bank has reportedly hired Lazard
    LAZ,
    -2.17%
    to weigh strategic alternatives.

    All of these factors add to the uncertainty swirling around First Republic, giving investors little reason to go long on the stock for now.

    Also Read: 24 bank stocks that contrarian bottom-feeders can feast on now

    Related: Senate Banking Chair Sherrod Brown sees bipartisan support for changes to deposit insurance

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  • Amazon’s stock dips 1% as another 9,000 layoffs announced

    Amazon’s stock dips 1% as another 9,000 layoffs announced

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    Amazon.com Inc. is eliminating another 9,000 jobs, the company announced Monday morning.

    In a memo to staff, Amazon
    AMZN,
    -1.25%
    Chief Executive Andy Jassy said the cuts would take place over the next few weeks and primarily affect Amazon Web Services, People Experience and Technology Solutions, advertising and Twitch. [Twitch CEO Dan Clancy broke the news of 400 layoffs to employees in a blog post later Monday.]

    “This was a difficult decision, but one that we think is best for the company long term,” Jassy wrote.

    “For several years leading up to this one, most of our businesses added a significant amount of headcount,” Jassy added. “This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

    The news sent the retailer’s stock down 1% in trading Monday.

    The latest layoffs, amid a challenging macroeconomic climate that has claimed tens of thousands of jobs in the tech industry, follow an earlier round at Amazon, announced in November, that affected more than 18,000 employees. Additionally, Amazon has paused construction of its second headquarters in Virginia.

    At the same time, there are rumblings out of the Beltway that the Biden administration is preparing legal actions against Amazon stemming from investigations into its business practices, according to a report in Politico.

    Amazon is the second Big Tech company this month to announce additional job cuts. Last week, Mark Zuckerberg, CEO of Facebook parent Meta Platforms Inc.
    META,
    +1.12%    ,
    wrote in a blog post the social-networking company would slash 10,000 more employees as it focuses on a “year of efficiency.” The move drove Meta shares up 7% and helped the company top $500 billion in market value for the first time since June.

    In November, the company said it would cut 11,000 employees, or about 13% of its workforce, in the first layoffs in the company’s 18-year history.

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  • Credit Suisse, UBS, First Republic, and More Stock Market Movers

    Credit Suisse, UBS, First Republic, and More Stock Market Movers

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    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/stock-market-movers-a86267f

    • Order Reprints
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  • Ryan Reynolds Sells Mint Mobile for $1.35 Billion to T-Mobile

    Ryan Reynolds Sells Mint Mobile for $1.35 Billion to T-Mobile

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    Ryan Reynolds Sells Mint Mobile for $1.35 Billion to T-Mobile

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  • Asana stock soars 24% as software company says path to profitability is improving

    Asana stock soars 24% as software company says path to profitability is improving

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    Asana Inc. on Wednesday reported and forecast narrower-than-expected losses, saying the figures reflected a firmer path to profitability, and its stock skyrocketed in after-hours trading.

    The project-management software provider — whose chief executive is a co-founder of Meta Platforms Inc.’s
    META,
    +0.25%
    Facebook — forecast first-quarter sales of $150 million to $151 million, with an adjusted net loss of between 18 cents and 19 cents a share. That’s better than FactSet forecasts for a 23-cent per-share loss with revenue of $150.4 million.

    For the full year, Asana
    ASAN,
    +1.83%
    said it expects revenue of between $638 million and $648 million, with an adjusted net loss of 55 cents to 59 cents. Analysts polled by FactSet expected a 79 cent-per-share loss, on sales of $645.8 million.

    The company reported a fourth-quarter net loss of $95 million, or 44 cents a share. That compares with a loss of $90 million, or 48 cents a share, in the same quarter last year. Revenue rose 34% to $150.2 million, compared with $111.9 million in the same quarter last year.

    Adjusted for stock-based compensation, restructuring and other costs, Asana lost 15 cents a share, compared with 25 cents a year earlier.

    Analysts polled by FactSet expected Asana to reported an adjusted loss of 27 cents a share, on revenue of $145.1 million.

    Shares soared 24% after hours.

    The company reported earnings as other workplace-oriented cloud-services platforms, like Salesforce Inc.
    CRM,
    -0.20%
    and Workday
    WDAY,
    -1.69%    ,
    scale back and lay off workers. The tech industry has tried to shrink, after hiring to meet digital demand brought by the pandemic that later fizzled as COVID restrictions lifted.

    Shares of Asana have fallen 60% over the past two months. By comparison, the S&P 500 Index
    SPX,
    +0.14%
    has lost 4.3% of its value over that period.

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  • Tesla, Apple, Ciena, and More Stock Market Movers

    Tesla, Apple, Ciena, and More Stock Market Movers

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    Stock futures traded mostly flat Monday as Wall Street kicked off a week that includes testimony before Congress from Federal Reserve Chairman Jerome Powell and the U.S. jobs report for February.

    These stocks were poised to make moves Monday:

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