Item Seller Profits from Kirk’s Shooting Incident

Shortly after the confirmation of Charlie Kirk’s death, a flood of advertisements for memorial products emerged on Facebook and Instagram.

A viral post boasting over 8,000 shares and several hundred thousand likes has gained traction for promoting the “Echo of Freedom” shirt, featuring Jesus’ American flag and Kirk’s signature. This design portrays him as a representation of “faith, freedom, America.” The very shirt that Kirk wore at the time of his assassination has become a popular item among his conservative backers. Another brand, Liberty Faith Gear, has adopted a more aggressive marketing approach with its Patriot version, declaring, “It rises when freedom is attacked. I won’t hide it. I won’t bow.”

Neither brand is officially linked to Kirk’s Turning Point USA and both are based in the United States. In fact, they are operated by Guangzhou Xiue Network Technology, an e-commerce business located in Panyu, China’s southern Guangdong Province, known as the country’s first fashion capital.

After Kirk’s assassination, a number of foreign apparel and commodity firms quickly capitalized on the event. The Guardian identified at least seven companies, including Harbin Huanjia Trading Limited and Jinhua Hongrun e-Commerce, which are profiting from Kirk’s products. Like Guangzhou Shiwei, these companies have a history of selling highly partisan and culture war-themed merchandise and have inundated Facebook and Instagram with numerous commemorative advertisements. They encourage prospective buyers to commemorate Kirk’s legacy by purchasing shirts, often claiming that profits will benefit his organization and family.


According to records from the Chinese company, Guangzhou Shiwei was established in 2021 and specializes in “multi-channel cross-border e-commerce operations.” The company manages a network of numerous social media accounts and e-commerce websites, being among the first to run ads exploiting Kirk’s death. Each account caters to various themes—some focused on faith and religion, others on patriotism and freedom, while some engage different US communities to promote interaction and sales.

In addition to Facebook accounts like See Insin, Liberty Faith Gear, and USA Freedom T, Guangzhou Shiwei operates USA Veterans. This page prominently features Kirk’s image and the Turning Point USA logo to create a recognizable presence, asserting their support for “TPUSA chapters nationwide.” They often use familiar language and addresses that sound legitimate to many Americans, yet a quick Google search reveals that many of these listed addresses correspond to gas stations.

A representative from Turning Point USA informed the Guardian that the Wear Freedom Brand is not affiliated with their organization.

Some of these ads from Guangzhou Shiwei’s network have even claimed that “100% of the profits from this shirt will go directly to Turning Point USA,” a statement that violates US law regarding political donations.

Attempts by the Guardian to reach out to the company for comments were unsuccessful.

Following Kirk’s death, national media and state actors from Russia, Iran, and China quickly entered the discourse, fueling a debate about the assailant and freedom of speech. They exploited the controversy to sow division. “Astroturfing“—the practice of using fake identities to generate a false sense of popularity—was recognized by many Americans during the 2016 elections. However, profit-driven companies have long used similar tactics for political influence.

Darren Linville, a professor at Clemson University specializing in media disinformation, pointed out that exploiting political moments for marketing purposes is nothing new, particularly within American markets.

“These networks exist for a reason. They are incredibly advantageous,” Linville remarked. “If we could eliminate cryptocurrency and t-shirt sales, we’d eliminate half of our social media trolls.”

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This isn’t the first instance of Guangzhou employing these misleading tactics. Prior to the last presidential election, accounts managed by the same company were found to have similarly used deceptive strategies, pledging illegal political contributions to support the Trump campaign while simultaneously promoting merchandise linked to the Harris Campaign and other PACs through products like “Childless Cat Lady” T-shirts and “can prevent communism” baseball caps.

At that time, 404 Media, the technology news outlet that first reported on this network of accounts, indicated that Meta, Facebook’s parent company, had removed hundreds of these ads following their intervention. Nevertheless, Guangzhou Shiwei persists in operating many of the same accounts and has used them recently to promote Kirk-themed products.

In a statement, Meta stated: “Regrettably, we utilize current events to attract highly engaged individuals online.” They mentioned having removed ads identified by the Guardian and the associated accounts deemed in violation of their policies, affirming their commitment to legally pursue those responsible for rule-breaking content.

Despite the firm’s efforts, several of its Astroturfing accounts continue to function on Meta’s platform, buying advertisements and promoting hundreds of red t-shirts, urging Americans to wear them on October 14th, coinciding with what would have been Kirk’s birthday.

Source: www.theguardian.com

Temu UK Doubles Revenue and Pre-Tax Profits in E-Commerce

The UK branch of Chinese online marketplace Temu saw its revenue and pre-tax profits double last year, as UK shoppers increasingly turned to products from ultra-budget retailers.

Temu UK’s revenue reached $63.3 million (£46.4 million) last year, nearly doubling the $32 million from 2023, with pre-tax profits climbing from $2 million to $3.9 million.

Nonetheless, on the operating front, the company—registered as Whaleco UK with Companies House—reported an increase in losses from $7.9 million to $8.7 million compared to the prior year. The majority of its operating loss was attributed to “exchange losses.”

Given Temu’s modest pre-tax profit, the company contributed just $985,000 in UK corporate tax, a rise from $517,000 in 2023.

Similar to Amazon UK and Google UK, Temu’s UK operations report revenues as “service fees,” indicating that it generates revenue “through the provision of corporate support services to affiliated entities.”

While Temu experiences rapid growth in the UK, the company, alongside others like cheap fast-fashion rivals and e-commerce giant Amazon, may have to raise prices following the government’s review of tax regulations in April, which would allow small parcels to qualify for UK tax exemptions.

Current laws permit international retailers to ship parcels to the UK valued under £135 without incurring import taxes. UK retailers argue that these regulations provide unfair advantages to businesses like Temu and Shein.

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Earlier this year, Theo Paphitis indicated that retail groups—including Ryman and Robert Dyas—were contravening the measure, suggesting that the retail group would encompass Ryman and Robert Dyas.

As of August 29th, the US has already initiated steps to remove the “minimum” exemption for parcels valued under $800.

On Wednesday, the head of luxury retailer Fortnum & Mason stated that this situation would significantly elevate the costs of goods, such as high-end teas, purchased by US consumers.

In July, European Union Attorney General Michael McGrath expressed dismay at the hazardous nature of some products offered by companies like Shein and Temu.

With 12 million low-value parcels being shipped daily within the EU from online retailers outside the bloc, McGrath has committed to tightening restrictions on the sale of products that blatantly violate the law.

The EU is also contemplating the elimination of the €150 (£130) tax-free threshold and the introduction of handling fees for each parcel.

Source: www.theguardian.com

Companies Assisting Trump in Immigration Crackdown Experience “Extraordinary” Profits

The companies involved in technology, surveillance, and private prison services that are supporting Donald Trump’s vast escalation and militarization of immigration enforcement are celebrating after announcing their recent financial performance.

Palantir, a tech firm alongside Geo Group and CoreCivic—both private prison and surveillance providers—reported this week that their earnings exceeded Wall Street’s forecasts, driven by the administration’s aggressive immigration policies.

“As usual, I was advised to temper my enthusiasm regarding our impressive numbers,” stated Alex Karp, CEO of Palantir, earlier this week. He then praised the company’s “remarkable numbers” and expressed his “immense pride” in its achievements.

Executives from private prison companies did not hesitate to highlight the chance for “unprecedented growth” in the immigration detention sector during their financial discussions.

Palantir reported that revenues from US government contracts exceeded $1 billion in the second quarter of 2025, a significant rise compared to the same period last year. Analysts had predicted revenue of $939.4 million.

Firms that aggregate and analyze various data sets, enabling clients to leverage that information for product development, will derive a substantial portion of their income from government deals. The largest customer in the US is the Department of Defense, which houses the US Army and recently announced a $10 billion contract with Palantir. Additionally, the Department of Homeland Security (DHS) has enhanced its partnership with Palantir since the Trump administration commenced, maintaining a collaboration that dates back to 2011. Immigration and Customs Enforcement (ICE) primarily focuses on the apprehension, detention, and deportation of immigrants.

“We provide safety and uphold values, so Palantir may face backlash simply because we help improve this nation,” Karp remarked. “The fact that we can succeed while holding a distinct viewpoint ought to provoke some jealousy and discomfort, given our perceptions of those we deem less desirable.”

While Palantir facilitates immigration enforcement, private prison companies Geo Group and CoreCivic have reported higher-than-expected earnings. Geo Group posted revenue of $636.2 million for the quarter, surpassing analysts’ forecasts of $623.4 million, while CoreCivic announced $5.382 million for the second quarter of this year, marking a 9.8% increase from the same period last year. George Zoley, CEO of Geo Group, noted that detention centers are fuller than ever, utilizing 20,000 beds across 21 Geo Group facilities and approximately one-third of the 57,000 available beds in ICE detention centers nationwide. Zoley also mentioned in a call that he is investigating detention centers on US military sites, one of the many “unprecedented growth opportunities” he discussed during the call.

Awaiting the Surveillance Boom

Though Geo Group’s detention sector has experienced a significant uplift, the growth of its monitoring division has not yet materialized as anticipated by executives earlier this year.

Executives anticipate that the Intensive Supervision Emergency Program (ISAP), an immigration monitoring initiative managed for the past 20 years by its subsidiary Bi Inc, will exceed its previous high of 370,000 monitored immigrants. Recent months have seen the number remain around 183,000 individuals.

“[ICE hasn’t] communicated any ISAP expansion at this time,” Zoley explained during an investor call.

Nevertheless, the company expects ISAP figures to rise next year, aiming to “maximize detention capacity.” The Trump administration has expressed interest in increasing the number of immigrants under surveillance through ankle monitors. Many immigrants have described ISAP surveillance as invasive and at times physically uncomfortable and ineffective.

In a discussion with investors, CoreCivic executives shared that they are offering ICE around 30,000 beds for detaining immigrants across their national network.

ICE Expansion Signals Future Financial Gains

A significant funding bill passed by Congress and signed by Trump last month has facilitated a substantial influx of funds into DHS. ICE received $45 billion to expand its detention infrastructure.

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Currently, ICE has approximately 41,500 beds available, while detaining around 57,000 individuals across its network. This funding influx could lead agents to detain thousands more, making it advantageous for private prison contractors.

“Our business is perfectly aligned with the demands of this moment,” stated CoreCivic CEO Damon T. Hininger during an investor call on Thursday. “We are in a unique situation, witnessing a rapid escalation of federal detention requirements nationwide, along with a continual need for our solutions.”

Management and budget offices are financially primed due to the spending package, allowing private prison firms to act swiftly in offering services to immigration officials.

“As we understand, the budget reflects moral priorities, and last month Congress decided to fully fund actions targeting the immigrant community at the cost of crucial programs benefiting all Americans.” “Since last November, private prison companies have been eagerly eyeing the potential for profit at the expense of everyone else.”

Since Trump’s re-inauguration this year, CoreCivic has amended, extended, or signed new contracts to detain immigrants at eight different facilities, as per the company’s financial reports. Geo Group has done similarly at five facilities.

Both firms expect to generate revenues amid increasing scrutiny from immigration rights and human rights organizations regarding conditions in immigration detention facilities across the nation.

Setareh remarked that the benefits from private prisons arise from “the devastation of human lives, orchestrated by the Trump administration, and made feasible by a complicit Congress.”

Cibola Correctional Facility, a facility in New Mexico housing both immigrants and federal prisoners, is currently facing investigation from the FBI for alleged drug trafficking activities. Since 2018, at least 15 individuals have died in the facility.

Last September, the company promoted Cibola as an ideal location for detaining additional migrants.

Source: www.theguardian.com

Second Study Reveals Uber’s Profits Surge Through Opaque Algorithms

A prominent academic institution has accused Uber of utilizing opaque software algorithms to significantly boost profits while negatively impacting drivers and passengers using their ride-hailing platform.

Research conducted by scholars at Columbia Business School in New York determined that the Silicon Valley company has adopted a systematic and selective approach to “algorithmic price discrimination,” which “raises rider fares and severely diminishes driver earnings to the tune of billions.”

The Ivy League Business School’s findings are based on an analysis involving “tens of thousands of rides… amounting to over 2 million…” travel requests, and it builds upon a recent study from the University of Oxford concerning 1.5 million UK trips published the previous week.

The UK research revealed that many Uber drivers in the UK have reported “substantially reduced” earnings since the introduction of the “dynamic pricing” algorithm in 2023, correlating with the company capturing a significantly larger share of fare revenue.


The US report, authored by Len Sherman, highlights that as a passenger, acceptance appears less favorable, while he expresses amazement at what has been accomplished.

Sherman’s report remarked: Reducing driver payments while enhancing their take rate significantly contributes to improving cash flow during the study’s duration.

In 2024, Uber announced that it had generated $6.9 billion (£5 billion) in cash for the year, a stark contrast to their loss of $303 million in cash in 2022.

Sherman noted that the advanced pricing introduced in the U.S. in 2022 is akin to the UK dynamic pricing algorithm implemented in 2023, significantly affecting passenger fares.

Columbia’s study, which examined trips made by 24,532 U.S. Uber drivers, concluded that the new algorithm has “modified the distribution of net rider fares among driver incomes.”

The recent Oxford study found that following the rollout of dynamic pricing, Uber’s median take-rate per driver surged from 25% to 29%, with some trips exceeding 50%.

These findings contribute to a growing list of controversies surrounding technology companies, including a 2021 UK Supreme Court ruling affirming that Uber drivers are entitled to a minimum wage and paid leave, along with the 2022 disclosure of the Uber Files, a global investigation revealing the company’s efforts to bypass police and regulations while secretly lobbying governments worldwide.

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Following the release of the Uber Files, Jill Hazelbaker, Uber’s Vice President of Public Relations, stated:

An Uber spokesperson remarked, “Uber’s pricing structure aims to be transparent and equitable for both riders and drivers. The prepaid pricing is disclosed prior to booking, enabling drivers to make informed choices based on a full understanding of wages, distance, and expected duration.”

“Our dynamic pricing algorithms function to synchronize real-time supply and demand, enhancing the platform’s overall reliability. The prepaid pricing model is not personalized, and our pricing algorithms do not utilize personal information from individual riders or drivers.”

“Last week, the company reiterated: [the University of Oxford] Report. All drivers are guaranteed to earn at least the national living wage.”

Source: www.theguardian.com

Tesla Board Chair Robindenholm Sells $188 Million in Stock as Profits Decline

In March, following a significant decline in Tesla’s stock price, Elon Musk informed employees that he was “committed to inventory.”

Robin Denholm, the chair of Tesla’s board, appears to have disregarded this advice. According to an analysis by Securities Filing’s New York Times, she has profited $180 million from selling Tesla shares she obtained through her board role within the last six months.

With this, her total earnings from Tesla stock sales exceed $530 million since she became chair in late 2018.

These stock transactions have raised questions regarding Denholm’s confidence in Tesla’s future. Her recent sales, executed under a pre-established trading plan created last summer, coincided with Musk’s demanding involvement in the Trump administration. Consequently, Tesla’s car sales have experienced a decline as Musk’s political endeavors alienated some customers. The company’s profits for the first quarter of 2025 plummeted to their lowest level in four years.

Denholm has the right to purchase stocks through stock options granted by Tesla from 2014 to 2020, which have dramatically increased in value. For instance, last week, she acquired over 112,000 shares at $24.73 each and sold them the same day for upwards of $270.

“To discard her inventory does not send a message that this is a board chair invested in the company’s future,” stated New York City Director Bradlander, overseeing the city’s five public pension funds, which held more than 3 million Tesla shares valued at around $817 million as of March.

A spokesperson for Denholm asserted that Tesla compensates its executives in a manner “fully aligned with shareholder interests.”

“The appreciation of Tesla’s director’s choices reflects the company’s superiority over its industry peers, yielding distinctive returns for shareholders who own the company,” he added.

Stock options, which have historically constituted the bulk of Tesla’s compensation, are valuable only if the company’s stock price appreciates. Those exercising options to acquire shares may choose to sell or retain their new shares.

Denholm has sold over 1.4 million Tesla shares while retaining 85,000 shares and approximately 49,000 stock options. Comparative Methods, a consulting firm, has scrutinized the compensation strategy. Her most recent stock transactions occurred under a plan initiated in July shortly after Musk endorsed Donald J. Trump for president.

Regulatory frameworks allow executives and insiders to engage in such transactions without disclosing numerous plan specifics, including their motivations or the terms for stock disposal. They also possess considerable latitude to rescind plans.

Denholm, an experienced technology executive from Australia, typically maintains a low profile and avoids public commentary on Tesla or Musk. She joined the Tesla Commission in 2014 and became chair after Musk stepped down in 2018 as part of an SEC settlement.

Criticism from investors, activists, and Delaware judges has arisen regarding her and other board members for not serving as a check on Musk’s influence, with assertions that the Tesla director has failed to keep him focused on the company.

“Musk operates as if there were no board oversight,” wrote Delaware Chancery Court Prime Minister Catalyne St. J. McCormick last year, noting the case was valued at approximately $56 billion when ruling in favor of shareholders contesting Musk’s 2018 compensation package. Judge McCormick characterized Denholm’s oversight of Musk as “Rakkadichal.”

Tesla’s appeal against the decision led to the annulment of Musk’s pay package, with Denholm actively disputing Judge McCormick’s allegations.

“Everyone who knows me understands I’m not lacking in assertiveness. I know what that word means now,” Denholm told the Financial Times last year. “It’s probably the farthest from the truth. I’m genuinely passionate and highly engaged with my duties.”

In the trial concerning Musk’s compensation, Denholm characterized her earnings from the Tesla board as “life-changing.” Compensation at Tesla was also scrutinized in another lawsuit in which Denholm and fellow board members reached a settlement in 2023.

Musk, who has been a part-time CEO of Tesla for years, has assumed even more responsibilities over time, regularly engaging with Washington and orchestrating President Trump’s strategies to reduce governmental spending and oppose federal employees.

Recently, Musk stated he would reduce his Washington presence by one or two days each week. Nevertheless, his focus will remain divided as he manages several other enterprises, including SpaceX and X, the social media platform he owns.

The first transaction based on Denholm’s recent trading plan occurred in November, shortly after the presidential election, as Tesla’s stock began to rise. In December, the stock reached a new high, and she continued to sell until early May, even as prices declined amid consumer backlash against Musk’s political activities.

Following recent losses, the stock has decreased by approximately 34% from its peak.

Musk acknowledged Tesla’s challenges during a March meeting with employees. “If you read the news, it feels like you understand.”

He reiterated his advice to employees not to sell their shares, asserting that Tesla will evolve into the world’s most valuable company through the realization of self-driving taxis and advanced robotic technologies. “The future is exceptionally promising,” he stated.

Denholm’s sales have significantly outpaced those of other Tesla board members.

In 2023, she and other current and former board members agreed to a settlement for shareholder lawsuits concerning their compensation, collectively agreeing to return $735 million. They denied any wrongdoing. Additionally, on May 1, a stock option valued at over $130 million was canceled to fulfill Denholm’s obligations, according to securities filings.

Following the lawsuit in June 2021, the board resolved to relinquish the new stock grants.

During the same period, Denholm also made more from selling company shares than other corporate committee leaders. The Times assessed stock sales made by chairs of the most valuable companies in the U.S., distinct from the executives of those companies, like Denholm.

The next non-executive chair who benefited significantly from selling shares in his oversight capacity is Stephen Hemsley of UnitedHealth Group. Since November 2018, Hemsley has profited over $100 million from UnitedHealth shares, all accrued during his tenure as CEO of the healthcare firm.

UnitedHealth reviewed the findings but refrained from commenting. On Tuesday, the company announced its decision to appoint Hemsley as its new Chief Executive while also retaining the chair position.

Sales carried out by executives and directors often predict subpar performance from the companies they lead, according to various academic studies.

Leaders like Denholm possess access to confidential information and a profound understanding of how broader economic factors can impact corporate performance. Nejat Seyhun, a finance professor at the University of Michigan, observes that this can render their transactions particularly lucrative.

Insiders “establish plans when they hold such information,” remarked Professor Seyhun. “If circumstances shift, they can easily rescind those plans.”

Source: www.nytimes.com

Blockchain experts forecast which tokens will generate profits

As Polkadot (DOT) adoption soars, investors are looking to diversify with promising tokens. Learn about RCO Finance (RCOF) and how it can help you maximize your profits.

Despite being a revolutionary technology, Polkadot (DOT) has struggled to gain adoption since its launch. The coin showed a downward trend through most of 2023. However, the trend reversed in the fourth quarter of 2023 with increased user and developer adoption.

This marked the beginning of significant growth for Polkadot (DOT), reflecting the platform’s growing influence in the cryptocurrency scene. In the last 24 hours 37.51% increase in trading volume, $225 million.

Given the market trends, crypto analysts expect Polkadot (DOT) to continue its bull run soon. Investors are also considering adding tokens such as: RCO Finance (RCOF) We have solid growth potential in our portfolio.

Polkadot (DOT) Bull Run’s future expectations

The current market price of Polkadot (DOT) is: $6.98 is expected to rise further in the coming days. Cryptocurrency expert We predict that the asset will skyrocket and increase by 229.98% to $22.82 by next month.

Based on technical analysis, Polkadot (DOT) has gained 33% in the past 30 days.

They predict prices will remain around $6.92 at the 2025 low end. Their analysts predict that Polkadot (DOT) will hit a high of $32.90. If Polkadot (DOT) reaches the upper end of the target price, investors who buy this coin today could earn a return of 377.90% by next year.

Sure, a 300% ROI on a token would be great, but other assets could yield even more returns in the long run. Investors who prioritize portfolio diversification are always looking for new profitable projects to get into early.

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Source: www.the-blockchain.com

Meta’s Profits Soar as Company Shifts Focus to AI and Announces Dividends to Investors

Meta stock soared 15% in after-hours trading. The company’s strong fourth quarter results came a day after CEO Mark Zuckerberg was assaulted during a controversial Congressional hearing.

The company also announced that it would pay investors a dividend of 50 cents per share for the first time and authorized a $50 billion stock repurchase program.

Overall, Meta reported fourth-quarter revenue of $40.1 billion, beating expectations of $39.18 billion and increasing 25% year-over-year. The report comes as Meta, like many major technology companies, seeks to integrate artificial intelligence tools into its core products. In a statement accompanying the report, Zuckerberg said Meta was “a significant step forward in our vision of evolving AI and the Metaverse.”

“We anticipate that our ambitious long-term AI research and product development efforts will require increased infrastructure investment beyond this year,” the company’s press release said.


During last quarter’s earnings call, Zuckerberg touted Meta’s plans to invest in AI, saying it would be the company’s biggest investment area in 2024. Zuckerberg said in a video he shared on Instagram in early January that his company would acquire $9 billion worth of AI. Nvidia chips help scale up AI

Zuckerberg said AI will not only enhance ad campaigns and increase ad revenue, but AI will also be used to support new meta-products such as AI chatbots. Advertising revenue, the company’s core business, was $38.7 billion, compared with $31.25 billion in the same period last year. His Meta hardware products, such as the Quest 3 VR headset, still don’t account for a large percentage of the company’s revenue. Zuckerberg said on a conference call Thursday that he expects Meta to begin rolling out its AI services more broadly in the coming months.

Meta has laid off more than 20,000 employees in 2023 as it focuses on cost-cutting measures as part of what Zuckerberg has dubbed the “Year of Efficiency.” These efforts seem to have paid off, with Meta’s operating profit margin doubling from 20% in the same period of 2022 to 41%. Meanwhile, expenses decreased 8% year-on-year to $23.73 billion. Chief Financial Officer Susan Lee said on a conference call that Meta had more than 67,300 employees at the end of the fourth quarter, down 22% from a year ago, but that “hiring efforts have resumed. '', which resulted in a 2% increase from the third quarter.

Regulatory headwinds are probably top of mind for investors following Meta’s public taunts during Wednesday’s Congressional hearing. The hearing was convened to question Zuckerberg and other tech executives over the impact of their platforms on young users. The CEO expressed his condolences to the parents in the crowd who lost their children to online exploitation.

Throughout the hearing, lawmakers touted a bill that could strip Meta and other platforms of legal immunity for content posted on them, a move that would make Meta and other platforms illegal in 41 states over its impact on young users. It was enacted several months after a major lawsuit was filed by the attorney general. New Mexico’s attorney general also accused the company of failing to prevent child sexual exploitation and human trafficking.

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As a result of regulatory concerns, Meta has sought to diversify its core business, which has so far relied on advertising, which collects vast amounts of user data. Reality Labs, the division responsible for developing virtual reality products, faced a loss of $4.65 billion in the fourth quarter, up from $4.28 billion in the same period last year, bringing its total loss for 2023 to $16.1 billion. It reached $20 million. Meta said in a press release that it expects operating losses to “increase significantly year-over-year” as Reality Labs continues to expand its ecosystem.

In addition to regulatory concerns, Meta sees its platform’s user base tightening as young users in particular migrate to new platforms such as TikTok. The company said its platform is experiencing faster growth outside the United States. Insider information Principal Analyst Jasmine Enberg.

“On the usage side, Facebook continued to see a squeeze in user growth, but as expected, most of the new users came from outside of North America,” she said. “In the U.S., popularity among teenagers has become a liability in the eyes of lawmakers, which could hinder Facebook and Instagram’s efforts to grow in the country.”

Source: www.theguardian.com

Alphabet’s high profits overshadowed by advertising recession, leading to decline in Google investor confidence

Alphabet shares experienced a more than 5% drop in after-hours trading on Tuesday due to the tech giant’s shortfall in key advertising sectors, despite narrowly surpassing overall revenue estimates for the fourth quarter of 2023.

Google’s parent company disclosed that advertising revenue fell short of forecasts at $65.52 billion compared to $65.8 billion, but the overall revenue exceeded expectations at $86.31 billion versus $85.36 billion. This marked a 13% increase from the previous year.

The chief financial officer of Alphabet described the company’s results as “very strong,” emphasizing the surpassing of overall revenue expectations. “We remain committed to permanently restructuring our cost base while making investments to support growth opportunities,” she stated.

The response to the report was subdued after Google’s parent company laid off 1,000 employees in January. CEO Sundar Pichai announced at the end of the month that the company will refocus on “investing in key priorities,” particularly in the artificial intelligence elements integrated into Google’s flagship products, in 2024, and hinted at further job cuts.

Investors expressed encouragement Analysts believe that the recent job cuts may reflect prudent cost-cutting efforts amidst rising interest rates. However, the impact of the layoffs is evident, with Porat stating that severance pay in the first quarter of 2024 is expected to be $700 million. Alphabet recorded $2.1 billion in severance-related expenses and $1.8 billion in severance-related expenses in 2023, freeing up office space.


Despite the overall advertising downturn, Alphabet announced that YouTube ad revenue reached $9.2 billion, exceeding analysts’ predicted $9.16 billion and a significant increase from the same period in 2022.

CEO Sundar Pichai, in a statement accompanying the earnings call, expressed Alphabet’s pleasure with “the growing contribution from YouTube.” He also highlighted the company’s digital subscription services, including YouTube and cloud storage service Google One, achieving $15 billion annually.

“The significant growth in our subscription revenue over the past few years demonstrates the ability of our team to deliver high value-added services and provides a strong foundation on which to build,” he stated. Ta.

Like many other companies in the technology industry, Alphabet is aiming to take advantage of the AI ​​boom, with the mention of the word “AI” occurring more than 70 times in Tuesday’s earnings call. Pichai outlined the company’s plans to integrate its new AI model Gemini across various products, including search, advertising, and cloud.

Alphabet’s emphasis on AI comes as the company seeks to diversify its revenue streams. Its core search advertising business has stalled, and it faces growing antitrust litigation threats. The US Department of Justice filed a lawsuit against Google, alleging a monopoly on digital advertising technology. A judge’s ruling in January confirmed that the company will be forced to stand trial for charges brought by multiple states regarding advertising market dominance. The company also faced an antitrust case last year related to its dealings with other technology companies, including payments to Apple of about $18 billion annually to keep Safari’s default search engine.

“Google could have its toughest year yet as antitrust threats loom and the death knell sounds for third-party cookies,” stated Evelyn Mitchell Wolf, a senior analyst at Insider Intelligence. “We need to prepare ourselves for the possibility that something may happen.”

Source: www.theguardian.com

UN Secretary-General condemns big tech companies for prioritizing profits over ethics in AI development at Davos 2024

The pursuit of profits from artificial intelligence by big technology companies is reckless. Urgent action is necessary to mitigate the risks from this rapidly growing sector, the UN chief has warned.

UN Secretary-General António Guterres issued a scathing attack on technology multinationals during the World Economic Forum meeting in Davos. He stated that each advance in generative AI has heightened the threat of unintended consequences.

Guterres connected the risks related to AI to those posed by the climate crisis, highlighting that the international community lacks a strategy to address either issue.

During the WEF in Switzerland, the UN Secretary-General appealed to technology industry representatives in the audience to collaborate with governments in establishing guardrails for AI.

He referred to a warning in an IMF report, saying, “This technology has great potential for sustainable development, but it is very likely to exacerbate inequality.”

Guterres argued that influential technology companies are prioritizing profits without regard for human rights, personal privacy, and social impact.

While tech companies claim to have preventive measures in place to stop AI from being used for crime or other nefarious purposes, Guterres insisted that more action is necessary, urging governments and international organizations such as the United Nations to play a role in ensuring that AI is a force for good.

He emphasized the need for governments to work with technology companies to develop a risk management framework for current AI developments and to monitor and mitigate future damage, as well as to increase access to AI to bridge the digital divide.

Sam Altman, an executive at OpenAichief, highlighted the requirement for energy breakthroughs to meet the future demands of AI. He underlined the need for climate-friendly energy sources such as nuclear fusion, cheap solar power, and storage.

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Guterres also criticized fossil fuel companies for impeding progress on climate change and stressed the importance of phasing out fossil fuels for a just and equitable transition to renewable energy.

In summary, Guterres highlighted the need for a significant global strategy to address the threats posed by climate change and uncontrolled AI.

Source: www.theguardian.com

Understanding the Law of X: A Guide for Cloud Leaders on Balancing Growth and Profits

As an interest rate Returning to historical norms, the world has returned its focus to cost of capital and free cash flow generation. In order for companies to adhere to traditional heuristics like the Rule of 40 (i.e., the idea that the sum of revenue growth and profit margin must equal 40% or more, a metric that Bessemer helped popularize) We are working hard. Executives at both private and public cloud companies agree that free cash flow (FCF) margins are just as important (if not more important) than growth, and that the trade-off is he says 1:1. I often think about it. Many finance executives love the “Rule of 40” for its clarity, but placing equal emphasis on growth and profitability in late-stage businesses is flawed and leads to bad business decisions. I am.

our view

For companies with adequate FCF margins, growth must remain a top priority. There are good reasons to emphasize efficiency, but Traditional Rule of 40 Mathematics Is Completely Wrong When a company approaches its break-even point and has positive free cash flow,

The world has hyper-rotated to an FCF margin mindset instead of a growth mindset, which is counter to efficient business growth. Long-term models show that growth should be valued at least two to three times more than his FCF margin, even in tight markets.

Equivalent emphasis on growth and profitability in late-stage businesses is flawed and leads to bad business decisions.

why?

An increase in margin has a linear effect on value, but an increase in growth rate can have a compound effect on value. We provide detailed calculations below, but when we backtest the relative importance of growth and FCF margins, the correlation of public market valuations confirms it. Actual ratios vary widely in the short term (ranging from about 2x to about 9x over the past few years), but over the long term they are typically 2x to 3x growth value over profitability. It comes down to proportions.

Even the most conservative financial planner recommends that you can safely use a growth rate of up to 2x for late-stage private company profitability. Publicly traded companies with a low cost of capital can use multiples of up to 2-3x (as long as growth is efficient).

Image credits: Bessemer Venture Partners

Source: techcrunch.com