Nvidia has been served with subpoenas by the Justice Department as part of its ongoing investigation into potential antitrust violations by the Silicon Valley chipmaker that has dominated the artificial intelligence market.The antitrust watchdog had previously delivered questionnaires, and has now sent legally binding requests to Nvidia, according to Bloomberg News.The report added that other companies had also received subpoenas. 3 Nvidia, which is run by CEO Jensen Huang (above), has been subpoenaed by ...

Core Viewpoint - Constellation Brands is facing significant challenges due to weak wine demand, leading to a potential asset write-down of up to $2.5 billion and a drastic reduction in earnings outlook for the year [1][2]. Financial Outlook - The company has nearly halved its earnings outlook to a range of $3.05 to $7.92 per share, down from initial expectations of $14.63 to $14.93 per share [2]. - Total sales outlook has been revised down to between 4% and 6%, from a previous estimate of 6% to 7% [2]. Market Conditions - CEO Bill Newlands highlighted ongoing macroeconomic headwinds, particularly rising unemployment, as factors contributing to a slowdown in consumer demand for products [3][6]. - A sales decline of 4% to 6% is expected in the wine and spirits division, contrasting with earlier expectations of flat sales [3]. Strategic Adjustments - The company plans to adjust pricing and enhance marketing efforts to mitigate sales challenges in the wine and spirits sector [4]. - Despite the struggles in the wine division, Constellation anticipates a sales growth of 6% to 8% in its beer division [4]. Sales Performance - The demand drop has been particularly pronounced in the top five states for the beer business, which account for over half of Constellation's total sales volumes [7]. - The company had previously raised its profit outlook in July due to improved margins and strong beer sales [7]. Stock Performance - On the day of the announcement, Constellation shares rose by 2%, and the stock has increased by 0.7% year-to-date [8]. - The company has a market capitalization of $44.99 billion [8].

Toyota has recalled more than 43,000 trucks in the US over defects that could increase the risk of a car crash. The Japanese automaker recalled 43,395 2023-2024 Sequoia Hybrids sold in the US after identifying a risk with the vehicles’ tow hitches.Toyota has recalled its 2023-2024 Sequoia Hybrid vehicles due to a defect with the rear tow hitches. Getty ImagesThe tow hitch is a part located on the back of the truck that is used to connect the car to a trailer in order to be towed.The resin tow hitch on the S ...

Core Viewpoint - Intel is planning to present a strategy to its board aimed at cutting unnecessary businesses and revamping capital spending to improve its financial performance, which has significantly declined in recent times [1][4]. Group 1: Business Restructuring - The plan includes selling off businesses, particularly the programmable chip unit Altera, which Intel can no longer afford to support financially [1][7]. - Intel has already separated its foundry business from its design business and has been reporting these segments' financial results separately since Q1 of this year [2][3]. - The mid-September board meeting is crucial for determining which businesses Intel will retain and which will be sold off [5][7]. Group 2: Financial Performance - Intel's market capitalization has dropped below $100 billion, a significant decline compared to Nvidia's $3 trillion valuation [3]. - The company reported a disastrous second-quarter earnings report in August, leading to a pause in dividend payments and a 15% staff reduction aimed at saving $10 billion [5][6]. - Intel expects to cut capital spending to $21.5 billion in 2025, a 17% decrease from the current year [4]. Group 3: Advisory and Strategic Planning - Intel has engaged Morgan Stanley and Goldman Sachs to advise on which businesses to sell and which to retain [4]. - The proposal does not currently include plans to split Intel's contract manufacturing operation but may be discussed in the future [2][8]. - Potential buyers for the Altera unit include infrastructure chipmaker Marvell, indicating interest from other companies in acquiring parts of Intel's business [7][8].

David Solomon is sharpening the axe again. The Goldman Sachs CEO will slash more than 1,300 jobs as part of the bank’s ongoing review to cull poor performers, the Wall Street Journal reported on FridayGoldman’s cuts will affect between 3% and 4% of Goldman’s 45,000-strong workforce, the Journal added, citing people familiar with the matter. The cuts are part of the bank’s annual performance reviews that cull those believed to have performed poorly. Getty ImagesThe layoffs have already started and will conti ...

Disney CEO Bob Iger said he is laser-focused on finding his replacement by the time he steps down in 2026 — after his previous CEO pick blew up.Iger told Kelly Ripa on her podcast earlier this month that the search has “obsessed” him following his return to the top job in 2022. “I think it would be safe to assume that I think about [CEO succession] all the time,” he told Ripa. “I could say that ‘I’m obsessed with it’ would be probably an understatement, and actually, the board and I established when I retur ...

Amazon is hopeful that selling its goods through TikTok, Facebook, Instagram and Snapchat will reignite sluggish e-commerce growth as American shoppers pare back spending in a hyper-inflationary environment.The Seattle-based online retailer held two years of high-stakes negotiations with the CEOs of other tech giants, which culminated in a partnership despite dissent within Amazon’s ranks, according to a report.Andy Jassy, the CEO of Amazon, met separately with his Meta counterpart Mark Zuckerberg as well a ...

Core Viewpoint - Birkenstock shares fell over 15% after the company reported quarterly profits that missed expectations due to a global expansion plan impacting margins [1][2]. Financial Performance - The company reported an adjusted profit per share of 54 cents, below the expected 58 cents [1]. - Revenue was $624.6 million, a 19% increase year-over-year, but slightly below estimates of $625.6 million [2]. - Gross profit margin decreased by 220 basis points to 59.5% in the third quarter due to production expansion efforts [4]. Strategic Initiatives - Birkenstock is focusing on rapid international expansion, opening stores in markets like India and Japan to enhance sales [3][5]. - The company is investing in new manufacturing channels and updating existing facilities, including a new plant in Pasewalk, Germany [3][4]. - CEO Oliver Reichert noted a shift towards in-store purchases, prompting the company to expand its retail presence [2]. Market Position - Despite the earnings miss, Birkenstock continues to gain market share at major retailers such as Nordstrom and Foot Locker, driven by strong demand for its products [5]. - The company maintained its annual sales and profit forecasts, indicating confidence in its growth strategy [5].

Dollar General’s shares slumped 29% to a more-than-six-year low on Thursday after the discount retailer slashed its annual sales and profit forecasts, as competition for budget-conscious shoppers intensifies in the US.Dollar stores have come under pressure as deep-pocketed rivals such as Walmart and Target have doubled down on offering low-priced daily essentials. The rapid rise of Temu, China’s PDD Holdings’ e-commerce platform, has also weighed on the business.“(Dollar General’s results) show the challeng ...

Core Points - Google is facing significant legal challenges due to its alleged digital advertising monopoly, with a judge accusing the company of "clear abuse of privilege" for automatically deleting employee chat records [1][3] - The automatic deletion policy resulted in employee messages being erased after 24 hours, which the judge criticized as irresponsible corporate behavior [3][4] - The potential consequences for Google include the breakup of its digital advertising empire, which generated over $300 billion in revenue last year [3] - The trial is set to begin on September 9, following a previous ruling that found Google in violation of antitrust laws regarding its online search business [3] - The judge indicated that significant evidence may have been destroyed, which could adversely affect Google's defense strategy [4][6] - Google has faced ongoing criticism for its failure to preserve relevant employee chat records during various antitrust investigations [4][6] - The CEO of Google, Sundar Pichai, has stated that actions have been taken to end the auto-erase policy [6] - Other judges have also expressed strong criticism of Google's evidence handling, with one describing it as a "frontal assault on the fair administration of justice" [7]