The Microsoft logo is pictured outside the headquarters in Paris, Jan. 8, 2021. A group of video game testers is forming Microsoft's first labor union in the U.S. and the largest in the video game industry. Communications Workers of America said Tuesday, Jan. 3, 2023, that about 300 quality assurance workers at Microsoft video game subsidiary ZeniMax Studios have voted to join the union. (AP Photo/Thibault Camus, File)
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
TECH LAYOFFS
Shares of Amazon, Microsoft, and Google parent company Alphabet are all up this week following announcements of mass layoffs. Here's a quick refresher: Microsoft is cutting 10,000 jobs. Amazon is in the process of laying off 18,000 jobs, and Alphabet is putting 12,000 jobs on the chopping block as of Friday. The layoffs are happening despite a historically tight labor market, in part because tech firms hired too many workers during the pandemic. The companies said uncertainties around the global economy going into 2023 are behind the reversal.
NETFLIX ADDS SUBSCRIBERS
Netflix's stock is up near 4 percent this week after reporting that it added 7.6 million subscribers, compared to Wall Street estimates of around 4.5 million. The subscriber beat was enough to counterbalance an earnings miss, and the news that long-time co-CEO Reed Hasting will be transitioning to the role of executive chairman. Chief Operating Officer Greg Peters is replacing Hastings as CEO. Notably this is the first quarter that Netflix offered a cheaper ad-supported plan, though it's unclear how much that contributed to the subscriber gains.
WAYFAIR TAKEOFF
Online furniture retailer Wayfair also announced layoffs this week, and investors also rewarded the move. The stock is up around 23 percent for the week after laying off 1,750 employees, or about 10 percent of its workforce. CEO Niraj Shah said the company grew too rapidly and was now streamlining in anticipation of economic headwinds, a now familiar story in tech.
CHINA POP FALLS
Despite the bullish sentiment in tech following the cuts, markets are set to end the week slightly down, due in no small part to some negative news from China. The country reported a population decline for the first time in decades on top of slowing economic growth. China only recently eased its COVID-19 restrictions, and hopes were high that the change would help buoy the world economy. Now it's less clear that the country will bounce back as strongly.
BITCOIN RALLIES
Finally, Bitcoin's price crossed $20,000 this week despite the collapse of most major crypto exchanges, including an announcement from crypto lender Genesis on Friday that it was declaring bankruptcy. The largest cryptocurrency is now floating around $22,300.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
