Tobias

Spotify’s Q3 earnings exceeded revenue expectations, but Q4 guidance for revenue and subscriber growth disappointed investors, causing a stock dip. While EPS and revenue beat estimates, premium subscriber numbers fell slightly short. A recent price hike had limited short-term impact. Ad revenue declined, contrasting premium revenue growth. Despite this, MAUs exceeded projections, boosted by mobile free tier enhancements. Spotify is leveraging AI, partnering with labels and integrating with ChatGPT, while navigating brand challenges from CEO’s investment choices.

NYU Stern MBA students are optimistic about AI’s impact, seeing it as a tool rather than a threat, according to Professor Robert Seamans. His curriculum emphasizes hands-on AI experimentation, including exercises where students use LLMs to build and dismantle arguments, fostering critical thinking. While high school and college students are more cautious, viewing AI as an aid, not a replacement for core skills, Georgia Tech is adapting curricula to emphasize higher-level concepts that AI cannot easily solve. Successful organizations will cultivate continuous learning and leverage AI to augment human ingenuity.

Beta Technologies, an electric aerospace company, debuted strongly on the NYSE, closing nearly 6% higher at $36 per share after pricing its IPO at $34. The IPO raised over $1 billion, valuing Beta at $7.4 billion. While Beta faces challenges like a $183.2 million net loss in the first half of the year, it anticipates FAA certification within 30 months. Major investors include Amazon and GE. Competitors Joby Aviation and Archer Aviation saw declines following Beta’s IPO, highlighting the eVTOL market’s volatility. Beta’s success is viewed as a bellwether for the eVTOL industry.

Perplexity AI accuses Amazon of “bullying” following a cease-and-desist letter demanding the startup prevent Comet users from making Amazon purchases. Amazon alleges computer fraud, claiming Perplexity lacks authorization and compromises user data. Perplexity argues Comet enhances shopping, while Amazon contends its agents degrade the experience. The dispute highlights tensions between tech giants and AI startups regarding platform integration, data security, and potential business model disruption, with Amazon developing its own AI shopping tools. The outcome could set precedents for AI integration in e-commerce.

OpenAI’s AI video generation app, Sora, has launched on Android in the U.S., Canada, Japan, South Korea, Taiwan, Thailand, and Vietnam, following its iOS debut. The Android expansion targets a larger global audience, aiming to drive adoption and refine AI algorithms. Sora allows users to create videos from text prompts, fostering a creative community similar to TikTok. Analysts predict a significant impact on creative fields due to Sora’s accessible and advanced generative AI video capabilities.

Sam Bankman-Fried, founder of the collapsed crypto exchange FTX, is appealing his fraud conviction, arguing his trial was “fundamentally unfair.” His attorney claims court rulings improperly limited his testimony, skewing the proceedings. Judges questioned the evidence of guilt and the impact of additional testimony. A key argument centers on whether FTX creditors have, or will be, fully compensated, potentially undermining the prosecution’s narrative of irreparable financial losses. The appeals court is scrutinizing the $11 billion forfeiture order and its implications for victim compensation. The decision will have significant consequences for Bankman-Fried and the wider crypto industry.

IBM will reduce its global workforce by a low single-digit percentage in Q4, impacting around 2,700 positions. This realignment, driven by advancements in AI, mirrors similar moves by other tech giants like Amazon and Meta. Despite the cuts, IBM anticipates flat U.S. employment year-over-year. The company reported strong earnings and is actively diversifying into cloud computing, AI, and consulting under CEO Arvind Krishna, who has emphasized AI’s role in optimizing workflows. Previous staff reductions occurred in marketing and communications in March 2024.

Pinterest (PINS) shares plummeted nearly 20% after Q3 earnings missed EPS estimates and provided weak holiday season guidance. While revenue grew 17% year-over-year to $1.05 billion and MAUs reached 600 million, the forecast for Q4 revenue fell short of expectations. The company cited moderating ad spend in the U.S. and Canada due to tariff-related margin pressures for larger retailers, impacting the home furnishing category. Despite AI investments and user growth, Pinterest faces a competitive ad landscape dominated by tech giants.

AMD’s Q3 results exceeded expectations with $9.25B revenue and $1.20 adjusted EPS. Revenue grew 36% YoY, driven by strong performance across key segments. Q4 revenue is projected at $9.6B, up 25% YoY, with a 54.5% gross margin. The company’s guidance excludes Instinct MI308 chip revenue to China. Strategic partnerships with OpenAI and Oracle, and Amazon’s sale of AMD shares highlight key developments. The company’s success in AI and other key areas intensifies its rivalry with Nvidia.

Super Micro Computer (SMCI) shares plunged 10% in after-hours trading as fiscal first-quarter results missed analyst expectations. EPS was 35 cents (adj.) versus 40 cents expected, and revenue reached $5.02 billion, below the $6 billion forecast. Revenue declined 15% year-over-year. Net income also more than halved. The company cited “design win upgrades” for the shortfall, shifting revenue to Q2, where they now forecast $10-$11 billion in sales. Despite benefiting from AI growth, SMCI’s growth seems to have slowed amid increasing competition.