Here is a rundown of Cheddar News' top market stories of the day.
TECH LAYOFFS
Multiple outlets are reporting that Microsoft will begin a series of planned layoffs on Wednesday that could cut around 5 percent of its workforce, or 10,000 employees. CEO Satya Nadella warned the cuts were coming, and said the next couple of years were likely to be challenging, as the tech sector contracts after a decade plus of rapid growth. Amazon is also set to move ahead with plans to cut 6 percent of its 350,000 corporate employees.
ADOBE'S DATA DEBACLE
Adobe is facing backlash from customers who are concerned the software company is using personal images and video to train artificial intelligence models such as OpenAI’s Dall-E. Chief Product Officer Scott Belsky denied the accusations in an interview with Bloomberg, saying: "We have never, ever used anything in our storage to train a generative AI model."
UNITED AIRLINES EARNINGS
United Airlines' fourth quarter earnings beat Wall Street estimates on the heels of a rebound in travel demand. The company reported a 31 percent increase from the same period before the pandemic. The gains were made despite the airline flying 9 percent fewer trips and a litany of other challenges, from winter storms to labor shortages to supply chain disruptions.
UNIVERSITY BANS TIKTOK
The University of Texas at Austin is blocking access to TikTok on its Wi-Fi and wired networks. The move is a response to Gov. Greg Abbott's requirement that all state agencies delete the app from government-issued devices. The administration said it is also seeking to eliminate risks to information on the university's networks. University of Texas at Dallas and Texas A&M University System have since implemented similar restrictions.
Facebook parent Meta reported disappointing results in its first quarterly earnings report since rebranding to focus on the metaverse. The tech giant delivered mixed results with quarterly profit falling well below Wall Street expectations. Shares plunged more than 20 percent in after hours trading as a result. Martin Garner, COO of CCS Insight, joined Cheddar Movers to break down the company's results.
Karyn Cavanaugh, Chief Investment Officer at Carolinas Wealth Management, breaks down which industries investors should watch this earnings season and highlights which sectors have upside potential.
Super Group, the company behind leading global online sports betting and gaming businesses Betway and Spin, has landed on Wall Street. The company went public via SPAC with Sports Entertainment Acquisition Corp., and now lists on the NYSE under the ticker symbol 'SGHC.' This debut comes as the U.S. sports betting market continues to heat up with more and more states legalizing the practice. Eric Grubman, chairman of Super Group, joined Cheddar to discuss.
Miami wants to be the crypto capital of the world. Mayor Francis Suarez has gone all in on the blockchain, even accepting one of his first paychecks in Bitcoin, hosting one of the world's largest digital cryptocurrency conferences, and marketing Miami as a great place for tech experts to work. Maja Vujinovic, managing director of OGroupLLC, joined Cheddar's Fast Forward to discuss Miami's enthusiasm toward crypto, some of the potential risks that entails, and where the city might be heading when it comes to the crypto takeover.
Like so many other cities, Miami experienced a tourism boom over the summer after vaccines were distributed. But, the Omicron variant has thrown the travel industry for a loop. David Whitaker, president and CEO of the Greater Miami Convention and Visitors Bureau, joined Cheddar to discuss the city as a tourist destination, and how it has handled headwinds from the pandemic.
Miami's real estate market has boomed since early 2020, thanks to an overall strong housing market, remote work, and no income tax as incentives. The city is preparing to welcome even more residents as people relocate to warmer climates to work from home. Garrett Derderian, director of market intelligence at SERHANT, joined Cheddar to discuss the Magic City's red hot market.
Rockstar Energy, a subsidiary of Pepsico, unveiled its new beverage brand, Rockstar Unplugged, changing up the energy drink formula with hemp seed oil as an ingredient. PepsiCo Energy CMO Fabiola Torres joined Cheddar News to talk about how the product promotes “good vibes” and allows consumers to unwind and discuss partnering with "MTV Unplugged" for a concert series. "We couldn't find a better partnership that MTV," she said. "MTV Unplugged has been such an iconic proposition … and we believe that we're the right partners because the insight of our proposition for Rockstar Unplugged comes from music.
Eight months after the National Football League announced $1 million in research into cannabinoids, the NFL-NFLPA Joint Pain Management Committee has awarded the funding to two teams of medical researchers at the University of California San Diego and the University of Regina. The NFL says the studies will investigate the effects of cannabinoids on pain management and neuroprotection from concussion in elite football players, respectively. Cheddar correspondent Chloe Ailello spoke with Jeff Miller, the executive vice president of communications, public affairs, and policy for the NFL, about the studies, as well as the recent lawsuit filed against the NFL by former Miami Dolphins head coach Brian Flores. "Maybe we can learn things from other alternative pain approaches that are going to benefit our player population and then sports medicine as a whole," Miller said.
All Hands celebrates Black History Month by highlighting achievements in inclusivity and paying homage to those who have fought for equal rights. Rep. Maxine Waters (D-CA) joins Cheddar News to discuss voter suppression; Damali Peterman, CEO of Breakthrough ADR, elaborates on the biggest barriers for Black professionals; Andre Perry, senior fellow of Brookings Institution, dives into student loans and the racial wealth divide; and lastly, BET CEO Scott Mills discusses the company's initiatives for 2022.
