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.
Stocks closed mostly lower to end the week as investors eye a potential fifth COVID-19 wave, and maintain concerns about inflation. The Nasdaq closed at a record high as tech stocks maintained their strength. Mitch Roschelle, Founder of Macro Trends Advisors, joins Cheddar News' Closing Bell to discuss today's close, inflation, big tech pulling stocks higher, and more.
Bitcoin ticked higher Friday but still hit a one-month low amid a broader crypto slump. Investors are eyeing the potential liquidation of payments from collapsed exchange Mt. Gox, alongside the recent debut of three Bitcoin-linked futures ETFs as the SEC continues to avoid approving spot product ETFs. Steve Larsen, Co-Founder of PlannerDAO, joins Cheddar News' Closing Bell to discuss the broader crypto slump, why Mt. Gox is a concern, and more.
Wedbush Securities has raised its price target for Tesla stock to $1,400, among the highest on Wall Street. Analysts are pointing to an incoming green tidal wave as the main reason for their optimism, with President Biden's infrastructure bill expected to kick off a new era for electric vehicles in the U.S. Dan Ives, managing director of equity research at Wedbush Securities, joins Cheddar News' Closing Bell, where he explains why he's so bullish on Tesla even as competition from companies like Rivian heats up.
Streaming platform Roku announced plans to develop more than 50 original shows in a bid to become a destination for free content amid growing competition in the space. Shelly Kramer, co-founder and lead analyst at Futurum Research, spoke to Cheddar about the new offering "The transition here from hardware to adding a software component by way of original content, I think is smart," she said. "And it's all about the Benjamins." Kramer also noted that she doesn't necessarily think Roku is entering the content game too late.
Ameeth Sankaran, CEO of the emmy-winning media company Religion of Sports, joined Cheddar to talk about the "Man in the Arena: Tom Brady" docuseries that premiered on ESPN+ earlier this week. Sankaran noted Brady and former NFL star Michael Strahan as co-founders and discussed the origin of the company and its goal to tell stories about sports figures beyond their roles on the court or field.
The behind-the-scenes story of HBO's history is chronicled in the new book 'Tinderbox: HBO's Ruthless Pursuit of New Frontiers.' The book tells the true story of how HBO came to dominate the television industry as we know it. The man behind the book has interviewed over 700 key sources to uncover a bottomless trove of secrets, surprises, and never before heard stories. James Andrew Miller joins Cheddar News to share more.
Apple officially announced its self-service repair program allowing customers to buy individual tools and parts to fix their own devices. It comes as Apple continues to face pressure from 'right-to-repair' advocates. Ian Sherr, Editor at Large, CNET, joined Cheddar to discuss the significance of the move.
Markets were pointing mostly lower to end the week as investors reacted to the threat of a Covid resurgence in Europe. Jeff Schulze, Investment Strategist at ClearBridge Investments joined Cheddar's Opening Bell to discuss Friday's pre-market activity.
