IBM Corp. IBM, +0.31%
has abruptly pulled ads from X, formerly Twitter, amid a maelstrom of controversial comments from billionaire owner Elon Musk and the placement of IBM ads.
“IBM has zero tolerance for hate speech and discrimination and we have immediately suspended all advertising on X while we investigate this entirely unacceptable situation,” the company said in a statement emailed to MarketWatch.
IBM suspended advertising following a report by the Financial Times on Thursday that IBM ads appeared next to posts supporting Adolf Hitler and the Nazi Party. A Media Matters study also found ads from Apple Inc. AAPL, +0.90%,
Oracle Corp. ORCL, +0.53%,
and Comcast Corp.’s CMCSA, -0.28%
Xfinity and Bravo were adjacent to pro-Nazi content.
On Wednesday, Musk agreed with a post on X supportive of an antisemitic conspiracy theory that Jewish people hold a “dialectical hatred” of white people. “You have said the actual truth,” Musk wrote in response to the post.
Compounding matters, Musk on Thursday said on X it was “super messed up” that white people are not, in the words of one far-right user’s tweet, “allowed to be proud of their race.”
Adding fuel to the fire, Musk said on Wednesday that the Jewish advocacy group the Anti-Defamation League “unjustly attacks the majority of the West, despite the majority of the West supporting the Jewish people and Israel.” (Musk has threatened to sue the ADL because of its criticism of lax moderation practices on X that it says have allowed antisemitism to spread.)
The cascading conflagration prompted Tesla Inc. TSLA, -3.81%
bull and investment adviser Ross Gerber to grumble on X: “Getting a flood of messages from clients wanting out of tesla and anything to do with Elon Musk. Many saying they are selling their cars as well. What is he doing to the tesla brand??!!?!?”
Earlier this year, Gerber backed down from his “friendly activist” efforts to join Tesla’s board, saying he felt his concerns had been addressed. His firm, Gerber Kawasaki Wealth and Investment Management, has its own ETF, AdvisorShares Gerber Kawasaki GK,
which has Tesla as its top investment, and has attracted many clients with Tesla shares in its portfolios
In an interview on CNBC late Thursday, Gerber said that while he is not selling his Tesla stock, ” I’m not going to mince words about it anymore as a shareholder. It’s absolutely outrageous, his behavior and the damage he’s caused to the brand.”
Gerber said Musk has essentially abdicated his responsibilities as Tesla CEO: “It’s all about Twitter, and what he can tweet, and how many people he can piss off… What’s going to happen to Tesla over the next 10 years, are they gonna achieve their mission if the CEO isn’t actually the CEO? Because he’s certainly not acting as the CEO of Tesla.”
An X executive told MarketWatch that the company did a “sweep” of the accounts next to the IBM ads. Those accounts “will no longer be monetizable” and specific posts will be labeled “Sensitive Media.”
The executive said 99% of measured ad placements on X this year have appeared adjacent to content scoring “above the brand safety floor” criteria set by industry standards.
Late Thursday, X’s chief executive, Linda Yaccarino, tweeted: “X’s point of view has always been very clear that discrimination by everyone should STOP across the board — I think that’s something we can and should all agree on. When it comes to this platform — X has also been extremely clear about our efforts to combat antisemitism and discrimination. There’s no place for it anywhere in the world — it’s ugly and wrong. Full stop.”
The posts and ad placement come amid a wave of antisemitism on digital forums including X and a downturn in advertising on the platform linked to hate speech and misinformation. Musk said in July that ad revenue had plunged about 50%.
The latest kerfuffle is likely to complicate the efforts of Yaccarino, who was hired in June from Comcast Corp.’s CMCSA, -0.28%
NBCUniversal to sway advertising agencies and major brands to stay on, or initiate relationships with, the platform now known as X.
Tesla shares fell nearly 4% on Thursday but are still up about 90% to date in 2023.
It’s filing season for a string of major hedge funds, and big tech names like
Apple, Microsoft, and Nvidia were among the most-traded equities in the third quarter.
In the vast emptiness of space, a lost tool bag from a NASA spacewalk has become an unlikely stargazer’s delight. On November 9, 2023, the bag became untethered from astronauts Jasmin Moghbeli and Loral O’Hara during repairs on the International Space Station (ISS). Now orbiting Earth, the tool bag presents a unique sighting opportunity, shining bright as a star in the night sky.
Astronomical Mishap to Stargazing Marvel
What began as a minor mishap has evolved into a spectacle for amateur astronomers and curious onlookers alike.
The tool bag, initially following close behind the ISS, has started to lose altitude and drift ahead. Observations on November 11 showed the bag five minutes ahead of the ISS. Predictions suggest it will soon be nearly ten minutes in the lead.
Catching a Glimpse of the Celestial Tool Bag
This orbital oddity offers a new kind of sighting challenge. It can still be spotted with the aid of binoculars, appearing around magnitude +6. Those hoping to witness this sight should plan to observe the trajectory of the ISS, and then shift their gaze ahead of its path. With careful timing, the tool bag will make its journey across the stargazing canvas.
Despite its current visibility, the tool bag’s time in orbit is finite. As it continues to descend, it is expected to reenter Earth’s atmosphere between March and July of 2024, ultimately disintegrating. This event will mark the end of its accidental journey and remind us of the delicate nature of space operations.
The incident has sparked a renewed conversation about space debris and its implications. While the bag of tools poses no immediate threat, it underscores the broader issue of objects lost in space, highlighting the need for meticulous practices during extravehicular activities.
The Skyward Saga of a Tool Bag
From a practical instrument for space repairs to an object of curiosity circling our planet, the tool bag’s story captivates the imagination.
It serves as a reminder of our reach into space and the traces we leave behind. For now, as it glides silently above, the tool bag offers a fleeting connection to the vastness of space, a tiny beacon reminding us of humanity’s continuous quest beyond Earth’s bounds.
We independently select these products—if you buy from one of our links, we may earn a commission. All prices were accurate at the time of publishing.
In case you haven’t gone outside recently, fall is definitely in the air. Yep, even though it might feel like summer was just yesterday, we’re deep into the holiday season, which means it’s time to start making your lists and checking them twice — for sales, that is. While most of the juiciest deals have usually dropped later in the month, a bunch of our favorite brands have already launched their early Black Friday sales. KitchenAid, for example, is having a massive sales event right now through Nov. 11 on some of their top-selling products, including their iconic stand mixer, countertop blenders, hand mixers, and more. If you’ve ever been on the fence about investing in a KitchenAid appliance — and trust us, it’s more than worth it — now is the time to take the leap. There’s a good chance they’ll outlast you, and if you grab them now while they’re majorly marked down, they’ll be a lot easier on your wallet, too!
In mid-September, YouTube announced a collection of new artificial intelligence tools coming to the platform. The tools touch basically every part of the content creation process, from generating topics to editing and even generating video footage itself through the Dream Screen feature. But even as AI features have caused an uproar in so many other creative industries, the response to YouTube’s new suite of tools has been muted. Instead, YouTubers are sharing other concerns about the ways generative AI is already affecting the platform.
It’s been a watershed year as generative AI tools have made it easier to create images and text, all generated from internet scrapes of others’ art and writing. Artists and writers have typically pushed back, citing issues like copyright and their own work being undermined — in September, high-profile authors including George R.R. Martin and Jodi Picoult filed to sue OpenAI for scraping their books. And then there’s generative AI’s issues with hallucination and inaccuracies.
On the other side of the coin, these tools have been used by many people, either experimentally or professionally. Prizes have been won by AI art, while some news sites cut their staff and put out AI-generated articles. AI has also become a cornerstone of TikTok, particularly AI-powered filters. Creators use the Bold Glamour filter to apply makeup, a Ghibli filter to look like characters from the studio’s films, and even pay a fee for filters that generate themed avatars — like the hugely popular ’90s high school photo filter.
Maybe it’s the fact that YouTube’s tools aren’t available to the general public yet. But the quiet reception still seems to buck the trend. On the YouTube Creators account on X (formerly known as Twitter), the announcement only picked up a few hundred likes, doing similarly to engagement-bait tweets like “how do you make your audience feel seen and heard?” On the main YouTube account, it performed worse than a tweet reading “stars are kinda just sky rocks.”
On the platform itself, it’s difficult to find videos discussing the tools at all, despite a thriving community of YouTubers who explain how to use AI tools in making videos — just not the ones announced by YouTube. Instead, these videos focus on explaining existing tools to generate scripts and voice-overs, and to create and edit together images for the video visuals. YouTube’s new tools basically give creators an in-house option for much of this: Creators will be able to generate video prompts and script outlines, automatically edit clips together, and create AI-voiced dubs into other languages.
The main potential draw is that these AI tools would generate content based off of creators’ own historical output. For example, YouTube says the “insights” tool will be personalized so that new video ideas will take into account what a creator’s audience is already watching, something that other text generators can’t do without access to YouTube’s data. It also aims to recommend music for videos, including royalty-free music that hypothetically should help creators know what won’t get them troublesome copyright strikes.
But existing creators don’t seem particularly interested one way or the other. “No one’s heard of it yet,” says Jimmy McGee, a YouTuber who recently made a video titled “The AI Revolution is Rotten to the Core.” As the title might suggest, he’s not a huge fan of YouTube’s proposed tools, but he says it’s “strange” how they’ve been received.
He thinks it may be that these tools are mainly geared toward creators, and viewers may not notice if, for example, a video is edited with the help of AI. He doesn’t think the more obvious tools, like the melty generated visuals of Dream Screen, will take off in the long run. “People will get sick of those quick enough that it’s not really a problem,” he says. But the other tools might lead to longer-term issues in the creator space.
Viewers might not immediately notice if AI software is used to edit videos, but McGee worries that it will undermine those who actually use it. “It’s going to de-skill newer people on YouTube,” he says. Although he finds it unlikely that it will replace professional editors in its current form, it will prevent newer creators from growing their skills. YouTube is billing the feature as an easier way in for people who might not be as confident in their skills yet. It’s also aimed toward Shorts, YouTube’s vertical-video spinoff, so it might make things easier for those who only have their phones to edit on. But McGee thinks that relying on it may end up discouraging video creators in the long run as they struggle to grow creatively.
“I think the more decisions you can make in your video, the better the video can be,” says McGee. “Maybe it won’t be [at first], but the ceiling is higher. That’s what worries me. If someone goes in earnestly trying to use these tools, it’d be very sad to see them give up.”
That potential pitfall depends on whether YouTube’s tools stick around. Parent company Google has a habit of shuttering things — including features it has hyped up a lot more than this one. And generative AI is currently running at a loss for most companies. “We’re probably going to see a decline in its popularity pretty soon,” says media and fandom critic Sarah Z. “[In the meantime] I hope these tools are helpful to creators and serve as a way of empowering them to better execute videos that serve their visions rather than a way to undercut creators.”
But some creators already feel undercut by AI on the platform. Just before YouTube’s tool announcement, creator Abyssoft released a video about a potential case of plagiarism. In it, he detailed the similarities between a previous video he had put out and a video uploaded by a different channel and speculated on how AI could have been used to perform the theft, including using speech-to-text programs and AI voice-over software.
Contacted for comment, Abyssoft pointed out that this is already a widespread issue on the platform. In May, science communicator Kyle Hill spoke out against YouTube channels using AI to create unverified but attention-grabbing content on the site. These videos are often misleading and in some cases appear to copy topics that Hill himself had made videos on.
In his video, Abyssoft says that he isn’t sure what the solution to these issues is. But one thing he suggests is that YouTube should disclose when AI is being used in video creation. He’d also like to see “a punishment or strike system for people that fail to disclose and are proven to be using AI.”
This would be easier if it were YouTube’s own AI tools that were being used; the platform would already be aware. In response to a request for comment on whether Google was considering implementing this feature or any additional measures to avoid plagiarism and misinformation on the platform, Google policy communications manager Jack Malon stated that all content is subject to the existing community guidelines, and that these are “enforced consistently for all creators on our platform, regardless of whether their content is generated using artificial intelligence.”
Although Abyssoft considered some of the other generative AI tools as potentially useful, like the music tool helping creators avoid copyright issues, he continues to fear what easy access to AI tools might do to YouTube creators. “AI facilitates plagiarism in a way we haven’t seen before, and with a bit of effort it will soon become undetectable,” he says. “Competing in a sea of faceless AI channels will be a tough challenge for creators who make a living this way, as their upload cadence will be greatly outpaced by the AI.”
However, he doesn’t think that AI will necessarily produce interesting videos. “I’m assuming the tool that suggests video topics is only going to suggest ideas that it thinks will do well in the algorithm,” he says. “Things will get incredibly formulaic if [it’s] relied on too much.”
He does acknowledge that channels with technical content, such as his own speedrunning history videos, have the advantage of research and understanding that can’t be carried out by AI. McGee similarly feels somewhat protected by his own style. “My videos are messy and I like them that way,” he says. “I can make all the melty, weird visuals myself and make something I’m actually proud of.”
But other channels might not be able to survive. “Someone that covers current news will see AI upload videos before their editing is finished, since it can just scrape whatever articles have been published for the day and render out a video and voice-over in less than an hour,” says Abyssoft.
YouTube’s tools haven’t yet launched beyond a few test countries, so it’ll be some time until we see the impact they’ll have on the platform. But while creators have concerns that they might add new issues for both existing and upcoming video makers, they also have prior concerns about the use of AI that they feel aren’t being addressed by the platform. It seems to be these that are holding creators’ attention, not any new announcements.
In recent quarters, Meta Platforms CEO Mark Zuckerberg has been talking more about artificial intelligence and cost cutting, while focusing less and less on the company’s multibillion-dollar investment in the metaverse. Expect more of the same when the parent of Facebook, Instagram, WhatsApp, and Threads reports results after the close Wednesday.
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Bitcoin (BTC) ATMs have become both convenient and worrying, with scammers taking advantage of unsuspecting victims. Authorities in the US and other jurisdictions are now waging a war against crypto-ATM-based scams.
California takes a stance on new cryptocurrency laws
The state of California has introduced rules for cryptocurrency transactions. Senate Bill 401, signed by Governor Gavin Newsom, means you can only make $1,000 worth of cryptocurrency transactions at ATMs each day, and starting in 2025, the maximum they can charge you is $5, or 15% of the transaction. Whichever is higher.
Initially, some Bitcoin ATMs allowed up to $50,000 in transactions with fees ranging between 12% and 25% above the value of the digital asset. These changes are intended to protect people from scams and high fees, explained Sen. Monique Lemon, one of the co-authors.
Scammers taking advantage of the convenience of Bitcoin ATMs have been a growing concern, with the Federal Trade Commission reporting that more than 46,000 people have lost more than $1 billion to cryptocurrency scams since 2021. New transaction limits give victims more time to spot scams before loss of money. But Charles Bell of the Blockchain Advocacy Coalition worries that these rules could hurt the cryptocurrency industry and small businesses.
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FBI Alerts About Bitcoin ATM and QR Code Scams
The Federal Bureau of Investigation (FBI) has raised the alarm about fraudulent schemes exploiting ATMs for cryptocurrencies and quick response (QR) codes for payments. These schemes take various forms, including online impersonation, romance scams, and lottery fraud, all using cryptocurrency ATMs and QR codes as tools.
QR codes, which smartphone cameras can scan, simplify cryptocurrency payments. However, criminals are now using it to trick victims into paying money. Victims are often asked to withdraw money from their accounts and use a QR code provided by scammers to complete transactions at physical cryptocurrency ATMs.
Once the victim makes the payment, the cryptocurrency is transferred to the scammer’s wallet, making recovery nearly impossible due to the decentralized nature of cryptocurrencies. The FBI offers several tips to protect against these schemes, focusing on caution, verification, and avoiding cryptocurrency ATM transactions that promise anonymity using only a phone number or email.
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Bitbuy is partnering with Canada’s largest Bitcoin ATM provider
Cryptocurrency regulation efforts in California
The passage of Senate Bill 401 in California is part of a broader effort to regulate the cryptocurrency industry while protecting consumers. Another law, scheduled to take effect in July 2025, will require digital financial asset companies to obtain licenses from the California Department of Financial Protection and Innovation. This represents a clear shift towards tightening government regulation and oversight in the world of digital finance.
Gavin Newsom’s decision to sign these bills into law demonstrates California’s commitment to strengthening the cryptocurrency industry and protecting its citizens. Balancing innovation and security remains a challenge, especially in a rapidly evolving digital landscape.
Bitcoin Depot’s historic debut on the NASDAQ
In July, Bitcoin Depot, a leading bitcoin ATM operator, went public on the Nasdaq. This milestone comes after Bitcoin Depot merged with GSR II Meteora, a blank check company.
The move to go public demonstrates the growing legitimacy and acceptance of cryptocurrencies in major financial markets.
Authorities vs. illegal crypto ATMs
The UK Financial Conduct Authority (FCA) is taking a strong stance against illegal cryptocurrency ATM operators. Using its power under money laundering regulations, the Financial Conduct Authority (FCA) has carried out raids on cryptocurrency ATMs suspected of illegal activities across England.
The measures, which follow previous operations in east London and Leeds, are part of the Financial Conduct Authority’s (FCA) efforts to crack down on unregulated cryptocurrency operations. This highlights global pressure for stronger cryptocurrency regulation, mirroring steps taken in California. The balance between innovation and security remains a fundamental concern for regulatory bodies around the world.
This smartly designed tape measure has a built-in graphite holder and marking wheel to keep cuts without needing a separate pencil. It also has a sight line, making it easy to place the correct measurement. Each graphite stick lasts approximately. 2000 marks.
We independently select these products—if you buy from one of our links, we may earn a commission. All prices were accurate at the time of publishing.
It might sound like a cheesy Instagram caption, but I couldn’t live without coffee. It’s one of my favorite things because it combines my love of nerdy cooking projects with my equally nerdy love of all things “gear” — Plus, it tastes great and it’s a great morning ritual. (And, of course, I am hopelessly beholden to the whims of caffeine.) However, as much as I love pulling espresso, using an Aeropress, and firing up a Moka pot, I find myself coming back time and again to pour-over and drip coffee. I’ll still stand by my love of a simple Mr. Coffee machine for outfitting your first apartment, but once you’ve graduated from that, splurging on a high-end, programmable drip machine can be a total game-changer. Since my girlfriend would kill me if I brought home another bulky piece of coffee equipment into our tiny apartment kitchen, I figured my parents — who have been stubbornly refusing to replace their broken coffee machine for years — could use an upgrade. That’s why I was so excited to test out the OXO 12-Cup Coffee Maker with Podless Single-Serve Function on them, since if it could win them over, it has to be top-notch.
Design Features That Stand Out
For me, the look of the OXO 12-Cup Coffee Maker nearly won me over at first sight. In classic OXO fashion, the machine is made with gorgeous stainless steel — which makes for a particularly sleek-looking body — and a glass chamber for water, which is a nice upgrade from coffee makers that use plastic carafes. There are also two swappable baskets for different brew sizes (each comes with included filters) and an option to make a single cup, so you don’t have to worry about wasting coffee if you’re home alone. The heavy-duty stay-warm carafe also keeps your coffee hot for hours, so you don’t have to pop your mug in the microwave if you’re itching for a second cup later in the day. The display is also easy to read and easy to use, with just a few simple buttons and a dial — perfect for even the most technologically averse people in your life. There’s also a built-in cleaning cycle, which lets you descale your coffee maker with the push of a button. (The instruction manual gives ratios for descaling solution or vinegar, depending on which you decide to use.)
So yeah, it looks great — but how does it perform? Well, like pretty much everything OXO makes, it’s top-tier. I brewed a single cup (programmed to start brewing five minutes in the future) to test it out, and it worked great. It started brewing right at the five-minute mark, and all you have to do is just pour as much water into the reservoir as you want to brew, and it’ll spit out that exact amount (minus a little lost to saturating the grinds and evaporation) right into your cup. The taste was phenomenal — sort of like a cup of pour-over, thanks to the Rainmaker shower and the BetterBrew Precision technology, which controls water temperature and brew cycles for a smooth end product. The full pots are equally delicious, and if you don’t take my word for it, take my folks’. “I can vouch for the excellence of the OXO coffee system — tasty brew and the coffee stays hot,” my dad explained. “Coffee is excellent and cleanup is easy!” according to my mom.
Look, this isn’t a cheap coffee maker, obviously, but after having to replace a few mediocre machines in the past, take it from me: Snagging the OXO 12-Cup Coffee Maker will save you money in the long run. Another thing to note is that the carafe has a smooth pouring action — as long as you don’t totally invert it, in which case it can get a little splashy. Just take it slow.
Should YOU Buy the OXO 12-Cup Coffee Maker with Podless Single-Serve Function
I can give a full-throated recommendation for this machine, as long as you:
We independently select these products—if you buy from one of our links, we may earn a commission. All prices were accurate at the time of publishing.
When it comes to baking, nailing that perfect, fluffy cake is like a sweet victory, but let’s be real — besides decorating, baking is more science than art. The true magic of baking lies in the little things, like having your butter at the right temperature and making sure you’re hitting the proper ingredient ratios. If you’ve ever had eggs make a daring escape off your countertop, wrestled with butter measurements, or dealt with the whole room-temperature ingredient saga, you know the struggle can be oh-so-real. Luckily, we found an invention to simplify your baking life.
The Baker’s Helper Wood Board is the modern solution you’ve been waiting for. Its simple design promises to turn your baking adventures into a piece of cake (pun intended). Say goodbye to those frustrating mishaps and hello to wow-ing your loved ones with your newfound baking skills. With this innovation, you’ll wonder how you ever managed without it, and your delicious, perfectly baked creations will have everyone asking for your secret.
What is the Baker’s Helper Wood Board?
Made from reliable acacia wood, delicate ceramic, and handblown glass, The Baker’s Helper Wood Board is easy on the eyes and great for baking prep. The board contains six snug egg holders to keep runaway eggs in check and two butter trays for softening. There’s even a handy ceramic cup to store liquid ingredients, ensuring they’re ready to blend at room temperature! No more hassle, just more mouthwatering treats to impress your friends and family.
Priced at $68, the Baker’s Helper Wood Board isn’t just a kitchen tool; it’s your sous chef. Whether you’re looking for a hassle-free baking experience or want to add a touch of elegance to your kitchen, you’ll notice that having this board by your side is a game-changer. So, why wait? It’s time to make your baking life a whole lot sweeter.
Apple Inc. is blaming a software bug and other issues tied to popular apps such as Instagram and Uber for causing its recently released iPhone 15 models to heat up and spark complaints about becoming too hot to handle.
The Cupertino, Calif., company AAPL, +0.30%
said Saturday that it is working on an update to the iOS17 system that powers the iPhone 15 lineup to prevent the devices from becoming uncomfortably hot and is working with apps that are running in ways “causing them to overload the system.”
Instagram, owned by Meta Platforms META, -1.23%,
modified its social media app earlier this week to prevent it from heating up the device on the latest iPhone operating system.
Uber UBER, -0.33%
and other apps such as the video game Asphalt 9 are still in the process of rolling out their updates, Apple said. It didn’t specify a timeline for when its own software fix would be issued but said no safety issues should prevent iPhone 15 owners from using their devices while awaiting the update.
“We have identified a few conditions which can cause iPhone to run warmer than expected,” Apple in a short statement provided to The Associated Press after media reports detailed overheating complaints that are peppering online message boards.
The Wall Street Journal amplified the worries in a story citing the overheating problem in its own testing of the new iPhones, which went on sale a week ago.
It’s not unusual for new iPhones to get uncomfortably warm during the first few days of use or when they are being restored with backup information stored in the cloud — issues that Apple already flags for users. The devices also can get hot when using apps such as video games and augmented reality technology that require a lot of processing power, but the heating issues with the iPhone 15 models have gone beyond those typical situations.
In its acknowledgement, Apple stressed that the trouble isn’t related to the sleek titanium casing that houses the high-end iPhone 15 Pro and iPhone 15 Pro Max instead of the stainless steel used on older smartphones.
Apple also dismissed speculation that the overheating problem in the new models might be tied to a shift from its proprietary Lightning charging cable to the more widely used USB-C port that allowed it to comply with a mandate issued by European regulators.
Although Apple expressed confidence that the overheating issue can be quickly fixed with the upcoming software updates, the problem still could dampen sales of its marquee product at time when the company has faced three consecutive quarters of year-over-year declines in overall sales.
The downturn has affected iPhone sales, which fell by a combined 4% in the nine months covered by Apple’s past three fiscal quarters compared with a year earlier.
Apple is trying to pump up its sales in part by raising the starting price for its top-of-the-line iPhone 15 Pro Max to $1,200, an increase of $100, or 9%, from last year’s comparable model.
Investor worries about Apple’s uncharacteristic sales funk already have wiped out more than $300 billion in shareholder wealth since the company’s market value closed at $3 trillion for the first time in late June.
“Super apps” have never truly existed in the United States, and it is apparent at this point that they never will.
That isn’t stopping some executives and investment analysts from still dreaming of becoming one-stop shops for their users’ needs, something only a small handful of apps in Asia have managed to do. The most prominent is Elon Musk, the Tesla Inc. TSLAchief executive who purchased Twitter last year and has proclaimed that he will turn it into an “everything app” called X that resembles super apps in China.
The so-called Magnificent Seven grouping of technology stocks lost some of its luster this week after four of the seven moved into correction territory, meaning their stocks have fallen at least 10% from their recent peaks.
The corporate-bond market, in contrast, seems to like all seven names.
One caveat: Tesla has no outstanding bonds. In the past, the electric-car maker issued convertible bonds, but they have all been converted into equity.
The group is credited with helping drive the stock market’s gains in the first half of the year, driven by excitement about artificial intelligence. But the rally has stalled in recent weeks as investors have fretted over the potential for U.S. interest-rate increases, surging Treasury yields and China worries, with property developer Evergrande filing for U.S. bankruptcy protection late Thursday.
On Thursday, Meta followed Apple, Microsoft and Nvidia into correction territory, as MarketWatch’s Emily Bary reported. Tesla, meanwhile, is in a bear market, meaning it’s down more than 20% from its recent peak.
The following series of charts from data-solutions provider BondCliQ Media Services show how many bonds each company has issued by maturity and how they have traded as the stocks have pulled back.
The first chart shows that Microsoft has by far the most bonds, mostly in the 30-year bucket. The software and cloud giant has more than $50 billion in long-term debt, according to its 2023 10-K filing with the Securities and Exchange Commission.
Outstanding Magnificent Seven debt by maturity bucket.
Source: BondCliQ Media Services
This chart shows trading volumes over the last 10 days, divided by trade type. The green shows customer buying, while the red is customer selling. The blue shows dealer-to-dealer flows. Microsoft, for example, has seen almost $1.3 billion in customer buying from dealers in the last 10 days and $960 million in customer sales to dealers.
This chart shows that every name in the group has enjoyed better net buying in the last 10 days, with Microsoft leading the way.
Net customer flow of Magnificent Seven debt (last 10 days).
Source: BondCliQ Media Services
This chart shows spread performance over the last 50 days for an intermediate-term bond from each of the seven issuers. Most have tightened or remained steady over the period.
Historical spread performance of Magnificent Seven debt.
Apple’s stock entered correction Wednesday upon falling more than 10% from its July 31 peak of $196.45. The company sells mainly discretionary products, and right now “consumers are still being pinched” and thinking more carefully about where they spend their money, according to Matt Stucky, senior portfolio manager for equities at Northwestern Mutual Wealth Management.
There are two certainties in the tech world when it comes to digital advertising: Google and Meta. And then there’s everyone else.
Through economic thick and thin, Google and Meta are the gold standards by virtue of broad reach (billions of people globally), product dominance (in search and social media, respectively) and in their positions in the lightning-fast AI race. This week’s earnings results for Alphabet Inc. GOOGL, +2.46%
Both companies rebounded from recent wobbly digital ads sales of their own through giganticconsumer reach and aggressive plans to parlay AI into ad sales. Google has developed (or dabbled) in some form of AI for at least seven years, and in a conference call with analysts Wednesday, Meta Chief Executive Mark Zuckerberg said his company will focus in the near term on AI to develop agents, ad features in existing products like Instagram and Reels, and internal productivity and efficiency. “We want to scale them, but they are hard to forecast,” he admitted.
“We continue to believe it will take multiple quarters of improved execution for many investors to get more comfortable with the story longer term,” JP Morgan analysts said in a note on Snap earlier this month.
Digital-advertising leader Google sought to remind everyone it has been doing AI a long time while Microsoft Corp. MSFT, +2.31%,
a major investor in ChatGPT pioneer OpenAI, tempered its approach, Josh Wetzel, chief revenue officer at OneSignal, said in an interview. “AI’s greatest immediate value may be for Facebook advertising,” he said, pointing to it as an efficient and effective tool after Facebook encountered issues with data-privacy changes Apple Inc. AAPL, +1.35%
made to mobile devices.
“Meta’s solid quarter adds further evidence to the view that advertisers are choosing to spend their budget on the so-called market leaders, such as Facebook and Instagram, at the expense of the smaller social-media networks, like Snap,”said Jesse Cohen, senior analyst at Investing.com.
Jon Oberlander, executive vice president of social at digital-marketing agency Tinuiti, added: “It is, to some extent, still Meta/Google’s game, especially for performance advertisers, as the ROI and scale advertisers can find in the mid-lower funnel gap above other platforms.”
At the same time, Forrester analyst Kelsey Chickering said linear television ad revenue will slow between now and 2027 to about $65 billion from $70 billionas traditional TV continues to lose the under-25 crowd that has fled to streaming services and creator-heavy platforms like Snapchat and TikTok.
Digital advertising is on track to grow in the high single digits, or more, in 2023, slightly ahead of June’s forecast estimates from GroupM and Magna of around 8% each, according to Brian Wieser, head of Madison and Wall, a media and advertising consultancy for investors.
Most of that growth will benefit Google, Meta, and Microsoft’s LinkedIn, according to data from Emburse. Conversely, Emburse found ad spending on Twitter/X has plunged 54% from a year ago in May, before Elon Musk bought the company.
“Google, Meta and LinkedIn are platforms where people go to consume information, search for ideas, or give context to what they experiencing in their personal or work lives,” Emburse Chief Experience Officer Johann Wrede said.
While Alphabet CEO Sundar Pichai boasted Wednesday of “continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search” and other services, as well as improved YouTube ad sales, Meta’s addition of potential X-killer Threads could dramatically inflate its ad sales going forward.
Zuckerberg sees potential in Threads long term despite a plunge in its user sign-ups because X is hemorrhaging advertising clients, and this week reportedly slashed ad costs to lure business customers.
“The launch of Threads holds great promise for Meta. While there are currently no ads on the app, it’s inevitable that they will come and the ability to use data from other Meta properties for targeting is a highly lucrative proposition for brands,” Aaron Goldman, chief marketing officer at Mediaocean, said in an email.
That translates to more near-term pain for smaller platforms such as Snap and X, which are posting negative growth, Michael Nathanson of SVB MoffettNathanson warned in a note Wednesday.
“The truth is that Alphabet started integrating machine learning and artificial intelligence into their products and ad solutions close to a decade ago,” he said. Snap and others are scrambling to catch up.
Facebook parent Meta Platforms Inc. is raking in digital ads, as its earnings attest, and Wall Street is rewarding it. The company’s stock rose about 7% in after-hours trading Wednesday.
Meta META, +1.39% reported fiscal second-quarter net income of $7.79 billion, or $2.98 a share, compared with net income of $6.7 billion, or $2.46 a share, in the year-ago quarter.
Revenue climbed 11% to $32 billion from $28.8 billion in the year-ago quarter.
Analysts surveyed by FactSet had expected on average net income of $2.91 a share on revenue of $31.1billion.
A rebound in advertising, the monetization of Instagram and Reels, and AI-fueled ad targeting and measurement contributed to the quarter’s performance. Meta’s better-than-expected performance comes on the heels of a similarly strong quarter from Google parent GOOGL, +5.78%
“We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall,” Meta Chief Executive Mark Zuckerberg said in a statement announcing the results. AI has been an increasingly dominant story line for Meta, which has quickly shifted its focus from the metaverse. Zuckerberg said AI remains the company’s near-term focus, with metaverse poised to have a long-term impact.
“In many ways, the two are interrelated,” Zuckerberg said of AI and metaverse in a conference call with analysts. He also spotlighted the potential of Threads, a Twitter-like service that launched earlier this month with much fanfare. “When it gets to hundreds of millions of users, we’ll see how it monetizes,” he said. “It is a long road ahead.”
Meta executives forecast third-quarter revenue of $32 billion to $34.5 billion, while analysts on average were expecting $31.2 billion, according to FactSet.
Facebook had 2.06 billion daily active users, up 5% from a year ago, and the “family” of Meta apps — which includes Instagram — reported daily active users of 3.07 billion, up 7%.
There were blips amid the hoopla, however. Meta says it expects 2023 total expenses will be in the range of $88 billion to $91 billion, compared to the prior range of $86 billion to $90 billion because of legal-related expenses in the second quarter. And Meta’s headcount dropped 14% from a year ago to 71,469 as of June 30. Zuckerberg said Meta’s austerity program will continue into 2024.
Meta’s stock improved 1.4% to $298.57 in the regular session. The stock has sky-rocketed 148% so far this year, while the broader S&P 500 index SPX, -0.02%
has increased 19%.
Like other social-media platforms, Snap has struggled with a slowdown in the digital ad market.
AFP/Getty Images
Shares of Snap Inc. slid in after-hours trade Tuesday after the social-media platform forecast third-quarter sales that were below expectations, amid concerns about a wobbly digital advertising backdrop and the company’s spending push to improve the way people interact and advertise when they log on.
Snap SNAP, -1.34%
said it expects third-quarter revenue of $1.07 billion to $1.13 billion. The midpoint of that range was below FactSet estimates for $1.13 billion.
Shares tumbled 18.4% after hours on Tuesday.
“From a revenue perspective, our business remains in a period of rapid transition as we work to improve our advertising platform, while forward visibility of advertising demand remains limited,” executives said in Snap’s earnings release.
Like other social-media platforms, Snap has struggled with a slowdown in the digital ad market, amid advertiser wariness of a recession. Snap has also faced competition from the likes of Tiktok and Instagram and Facebook parent Meta Platforms Inc. META, +0.98%.
Snap has invested heavily strengthening its advertising platform, to serve users with more relevant ads and bring more impact to the businesses trying to advertise. It has also been spending to boost user engagement. Management, during Snap’s earnings call on Tuesday, said it would likely make “a further step up in investment here in Q3” to accelerate the progress being made on those efforts.
Executives said during the earnings call that engagement with Snapchat friend stories in the U.S. had started to fall more slowly, with viewership trending better than they had forecast. And they said time spent watching Spotlight — a part of the site that helps users explore and discover content — more than tripled year over year.
JPMorgan analysts, in a note earlier this month, said they continued to monitor Snap’s “heightened infrastructure costs.” But they said that the digital ad market had “stabilized” in the second quarter and that advertisers weren’t feeling as cautious, despite worries over the state of the economy.
“That said, we continue to believe it will take multiple quarters of improved execution for many investors to get more comfortable with the story longer-term,” the analysts said.
For the second quarter, Snap reported a net loss of $377 million, or 24 cents a share, compared with $422 million, or 26 cents a share, in the same quarter last year. Revenue fell to $1.07 billion, compared with $1.11 billion in the prior-year quarter.
Analysts polled by FactSet expected Snap to report a per-share loss of 25 cents a share, on revenue of $1.05 billion.
Daily active users rose 14% year over year to 397 million.
Evan Spiegel, Snap’s chief executive, said during Tuesday’s call that despite the competition from larger social platforms, it still had some advantages — namely, communication with friends and family.
“We actually think providing this place for friends and family to communicate has only become more important as more and more platforms focus on public social-media-style features where people feel like they have to compete for popularity, compete for likes and comments,” Spiegel said.
“It’s never been more important to actually build deeper relationships with your friends and family,” he added.
Shares of big tech companies have coasted through this year on AI euphoria, but as Microsoft Corp., Alphabet Inc. and Meta Platforms Inc. prepare to report results this week, some investors are starting to ask how much those AI advancements might actually cost.
Those questions have surfaced after several months during simply saying “AI” on earnings calls appeared to be enough for investors. If the economy sours though — as some expect in the second half of this year or next year — big tech’s AI ambitions could go with it.
“Given the exorbitant costs associated with the development, hosting and serving of AI products, many investors are concerned about the potential for [fiscal 2024] commentary regarding a material increase,” Jefferies analyst Brent Thill wrote, according to a MarketWatch earnings preview for Microsoft’s MSFT, -0.89%
results.
GOOG, +0.65%,
which both report on Tuesday, have been in heated competition in the world of online search and digital advertisements, as Microsoft leans more on its massive investments in research lab OpenAI to muscle up its own search capabilities. But a Deutsche Bank analyst said that so far, Google appears to have the upper hand in that battle.
Still, for Microsoft, after a broader pullback in IT spending earlier this year, analysts have found more to like about its cloud-computing business — namely market-share gains, generally-sturdy demand, and whatever ways AI can fit into the equation. Wolfe Research analyst Alex Zukin, in a recent note, said he believed “the focus will turn from what is good enough, to how good can it be,” as Microsoft moves deeper into AI.
“How good can it be?” might also be a question for Meta META, -2.73%,
which reports second-quarter results on Wednesday.
Shares of the social-media company have more than doubled in value so far this year. JMP analyst Andrew Boone, in a recent note, cited likely improvements in Meta’s digital ad segment, better engagement, and a broader advertising backdrop that “appears to be stable” after a slowdown in spending, Still, there are signs that the initial user attraction to Threads, Meta’s answer to Twitter, has fizzled.
Quick-service restaurant chains Chipotle Mexican Grill Inc. CMG, +0.20%
and McDonald’s Corp. MCD, -0.51%
also report, with BofA analysts expecting an “almost normal” quarter for the industry, after spending at chain restaurants grew last month and costs for some ingredients started to ease following two years of supply disruptions. Auto makers General Motors Co. GM, -1.81%
and Ford Motor Co. F, -0.71%
also report, and while parts shortages that have constrained vehicle production have shown signs of fading, so has electric-vehicle “euphoria.”
The calls to put on your calendar
Visa, Mastercard: Earlier this month executives from the big banks said U.S. consumers are generally doing OK despite still-rampant inflation, although perhaps less OK than in prior months. This week credit-card giants Visa Inc. and Mastercard Inc. report results on Tuesday and Thursday, respectively. The profit, sales and credit-card volume figures from Visa V, -0.15%
and Mastercard MA, -0.14%
will offer more specifics on consumer spending, as vacations and concerts compete with more expensive and more pressing needs, like groceries and other bills.
Shares of Visa and Mastercard are up so far this year, but some analysts said there could be more room investors to step in. SVB MoffettNathanson analyst Lisa Ellis recently said shares of both companies were hovering at “unusually attractive” levels.
The number to watch
Mattel outlook, and anything ‘Barbie’-related: The “Barbie” movie hit theaters nationwide on Friday. And after an epic marketing campaign, Mattel Inc.’s investors, banking on the film to drive a rebound for the toy maker during the second half of this year, will be zeroed in on the box-office results following the film’s debut on Friday.
Expectations for the film are huge. And when Mattel MAT, -0.42%
reports second-quarter results on Wednesday, executives could offer the first answers to some big questions: Has the film helped revive toy sales? Sales for anything else? Will the “Barbenheimer” effect help or hurt financials?
The film — directed by Greta Gerwig, written Gerwig and Noah Baumbach, and starring Margot Robbie and Ryan Gosling — brings together two writers with indie bona fides and two actors with mainstream starpower. Reviews so far have been favorable, and Barbie is already Mattel’s most profitable franchise. But the movie isn’t directly geared toward children, movie theaters have struggled to get back on track after pandemic lockdowns, and toy demand through this year has been weak after ballooning during the pandemic. And some analysts don’t expect “Barbie” to do much for Mattel’s stock.
Emily Bary and Jon Swartz contributed reporting to this story.
Late on Wednesday, Tesla Inc. TSLA, -1.10%
reported that quarterly sales were up 47% from a year earlier. But the stock tumbled 10% on Thursday.
Tesla’s shares are still up 113% this year. The company is among a group of 13 in the S&P 500 that stand out with high growth expectations for sales, earnings and free cash flow through 2025.
But less than half of analysts polled by FactSet rate Tesla a buy. Emily Bary explains what they are worried about.
Chipotle Mexican Grill is among 14 stocks named by Michael Brush for consideration by investors looking to ride along with long-term improvement of U.S. labor productivity.
AP
The S&P 500 SPX, +0.03%
has returned 19% this year, following its 18% decline in 2022. On the same basis, with dividends reinvested, the benchmark index is still down 2% since the end of 2021.
The Dow Jones Industrial Average DJIA, +0.01%
is up 6% this year. The venerable index has trailed the S&P 500, but its closing level of 35,255.18 on Thursday was only 4% shy of its record close a 36,799.65 on Jan. 4, 2022. Joseph Adinolfi explains Dow Theory, which according to technical analysts is sending a strong bullish signal for the stock market.
Even if you have resisted the idea of a Roth IRA, you may soon be forced to have one
This year if you are age 50 or older and are already maxing-out your contribution to a 401(K), 403(B) or other qualified employer-sponsored tax-deferred retirement plan at $22,500, you can make an additional “catch up” tax deductible contribution of $7,500 for a total of $30,000. But starting in 2024, the catch up contribution will no longer be tax deductible if you earn at least $145,000 a year. You can still make the contribution with after-tax money into a Roth 401(K) account that your plan administrator may already have set up for you.
Shares of Meta Platforms Inc. and Alphabet Inc. trade only slightly higher than the S&P 500 on a forward price-to-earnings bases, while Nvidia Corp., Microsoft Corp. and Apple Inc. trade much higher.
FactSet
Leslie Albrecht looks at Meta Platforms Inc. META, -2.73%,
which is Facebook’s holding company and has a hit on its hands with the new Threads social-media platform, and Google holding company Alphabet Inc. GOOGL, +0.69%,
to consider which stock is a better buy.
In The Ratings Game column, MarketWatch reporters track analysts’ thoughts about various stocks. Here’s a sampling of this week’s coverage:
You don’t know every bad factor causing air travel to be nothing but harassment
Getting there is half the fun.
Getty Images
The U.S. flying scene — from shortages of equipment and labor (and runways) to ill-staffed air-traffic control towers — is a well-known nightmare for U.S. travelers. But there is more to the story. Jeremy Binckes looks into other factors that may surprise you and cause great inconvenience this summer.
The Federal Reserve is expected to raise interest rates again next week
The Federal Open Market Committee will meet next Tuesday and Wednesday, to be immediately followed by a policy announcement. Economists expect the central to raise the federal-funds rate by another quarter point. The question is whether or not this will end the Fed’s inflation-fighting rate cycle.
How much would you pay for 100% downside protection in the stock market?
MarketWatch illustration/iStockphoto
Over the past 30 years, the SPDR S&P 500 ETF Trust SPY,
has returned 1,650%, for an average annual return of 10%, with dividends reinvested, according to FactSet. But it hasn’t been a smooth ride. The ETF, which tracks the benchmark S&P 500, fell 18% last year and 37% during 2008, for example. And there have been even larger declines if the analysis isn’t confined to calendar years.
But can you ride through market declines? Many studies have shown that most investors who try to time the market sell after a decline has started and buy back in well after a recovery is under way, which means their long-term performance can suffer significantly.
In this week’s ETF Wrap column (and emailed newsletter), Isabel Wang describes a new buffered fund that can give you 100% downside protection over a two-year period, in return for a cap on your potential gains in the stock market. Here’s the price you would pay for the protection.
The World Cup games have started
Hannah Wilkinson scored the home team’s first goal against Norway during the first World Cup game in Auckland, New Zealand, on July 20.
Getty Images
The Women’s World Cup began Thursday with an upset victory by New Zealand over Norway.
James Rogers reports on what is expected to be a much easier environment for FIFA and corporate sponsors than that of last year’s Men’s World Cup in Qatar.
U.S. Soccer Federation President Cindy Parlow Cone participated in MarketWatch’s Best New Ideas in Money podcast and spoke about the long-term effort to achieve equal treatment for women soccer players.
More coverage of the World Cup:
Want more from MarketWatch? Sign up for this and other newsletters to get the latest news and advice on personal finance and investing.
Four years ago, Zeus was surrendered to the city’s municipal shelter, after living the first two years in a yard, largely left alone. And in 2021, he was pulled into APA!’s care so that the Dog Behavior Program could help support Zeus who was struggling with behavioral challenges that were causing him to be overlooked. Since that time, he’s gone in and out of foster care. The behavior team, along with his circle of friends, have continued to work with him, offering tools to navigate his world and giving him time and space to build his confidence. Zeus has plenty of love to give and he so deeply deserves a home to call his own.
Zeus is not a difficult dog. He has behaviors that can be difficult if not approached appropriately, but APA!’s Dog Behavior team, paired with Zeus’ best friends (staff and volunteers) work to break down the barriers of how people interact with certain behaviors while also working to understand what the dogs are trying to communicate when they showcase those difficult behaviors. Zeus struggles with “stranger danger” and can also act out when over-aroused. This boy has a whole team of friends who have stayed by his side, offering him tools to help manage those behaviors to help him find a loving home.
Not all dogs get excited and wiggly to meet new people. Zeus needs new people to go slowly with him. We use treat tosses to build up trust, and watch for his body language to relax and for him to show consent before getting too close and offering any pets. A dog’s body language is an important part of their communication! With time and patience, Zeus will build enough trust to let you into his circle! Our team of staff and volunteers, will work with potential fosters or adopters to ensure they have the right tools to successfully become a Zeus BFF!
Another of Zeus’s quirks is the behaviors he exhibits when he is over stimulated. He may hump, or give “leg hugs” as his friends jokingly call it! Zeus does this when he is happy and excited, but we also know this isn’t exactly a desirable behavior. This is easily managed with treat tosses down and away or redirecting his behavior with a toy. He also loves to give little “pibble nibbles” when giving kisses. While he does this out of affection, not all people want face nibbles. Luckily treats and toys and appropriate chews and toys help redirect Zeus when he’s getting too excited!
This silly pupper also has a number of behaviors that we love to see! Zeus enjoys carrying one of his beloved toys whenever he goes on walks. Not only is it adorable to witness, having a toy in his mouth is a helpful tool to combat stranger danger, too! Zeus loves to go on adventures, whether that be to a local park or going to a friend’s house with a swimming pool. And afterwards, he turns into a snuggle bug — by cozying up on a couch with his best bud by his side.
Zeus has waited for his family long enough — let’s get this boy home! His ideal home would be low-traffic without small children. He could live in either a house or apartment. Zeus goes to playgroup at APA! and would be best suited to live with a similar-sized dog who has the same play styles. Our teams are happy to help assess a potential friendship and facilitate a meet and greet! Most importantly, this deserving dog is looking for someone who will trust the process, be patient as he warms up to a new human and new surroundings and pledge to love him for the good boy he is!
Funds associated with Cathie Wood’s ARK Investment continued to cull shares of Coinbase Global Inc. and Tesla Inc. on Monday, according to recent trade disclosures.
The ARK Fintech Innovation ETF ARKF, +1.58%
dumped 76,788 Coinbase shares COIN, +0.23%
on the day, while the ARK Innovation ETF ARKK, +2.29%
sold 127,266 and the ARK Next Generation Internet ETF ARKW, +2.23%
sold 44,784 shares.
Coinbase represents 0.78% of the Fintech Innovation ETF, along with 0.15% of the Innovation ETF and 0.30% of the Next Generation Internet ETF. ARK disclosed the transactions and weightings in the daily trade notifications it posts to its website.
Meanwhile, the ARK Innovation ETF shed 38,329 Tesla shares TSLA, +3.20%
on Monday, while the ARK Next Generation Internet ETF sold 6,855. Those shares were worth $13.1 million based on Tesla’s Monday closing level of $290.38. Tesla represents about 0.12% of both funds as they continue to unload shares.
ARK scooped up 455 shares of Meta Platforms Inc. META, +0.57%
within its Next Generation Internet ETF and bought up 3,729 shares within the ARK Innovation ETF. That amounted to $1.3 million worth of stock based on Meta’s $310.62 Monday close.
Two ARK funds bought a combined $790 million in Robinhood Markets Inc.’s stock HOOD, +0.89%,
with the fintech fund scooping up 25,641 shares and the Next Generation Internet ETF buying 37,630 shares. ARK added 4,608 shares of SoFi Technologies Inc. SOFI, +4.41%
to the fintech fund, worth $43,683 based on Monday’s close.
ARK was also active in shares of Twilio Inc. TWLO, -0.63%,
buying 15,702 within the Fintech Innovation ETF, 133,499 within the Innovation ETF and 22,748 within the Next Generation Internet ETF. That amounted to $11.4 million in Twilio’s stock based on Monday’s $66.47 closing price.
