Core Viewpoint - Comcast experienced a significant decline in broadband subscribers due to competition from telecom firms bundling 5G mobile services with internet plans, leading to an 11% drop in its shares despite positive overall financial results and a $15 billion share buyback announcement [1]. Subscriber Losses - Comcast lost 139,000 broadband customers in the fourth quarter, exceeding FactSet's estimate of a 91,000 loss, with additional impacts from Hurricanes Milton and Helene disrupting Florida businesses [2][3]. Revenue and Financial Performance - Total revenue for Comcast rose by 2.1% to $31.92 billion, surpassing estimates of $31.64 billion, while adjusted profit was 96 cents per share, exceeding estimates by 10 cents [5]. Strategic Initiatives - The company plans to introduce new pricing packages that bundle wireless and internet services in upgraded markets, adopting a strategy similar to that of wireless carriers like AT&T and Verizon [3][4]. - Comcast aims to unchain its main profit drivers, such as the studio and theme parks business, from the declining cable TV unit by spinning off select NBCUniversal cable networks [7]. Studio Performance - The film "Wicked," a movie adaptation of the Broadway prequel to "The Wizard of Oz," was Universal Pictures' biggest grosser in the quarter, earning approximately $700 million globally and contributing to a nearly 7% rise in Comcast's studio revenue [6][7]. - Peacock's revenue increased by 27.8% due to price hikes implemented last year ahead of the Olympics [7].

Product Development and Launch - Tesla is on track to roll out new, cheaper electric vehicle models in the first half of 2025 [1] - The company will start testing an autonomous ride-hailing service in June, with initial tests in Austin, Texas, and unsupervised tests in other states including California [1][3] - Tesla plans to use its current electric vehicle platform and production lines to produce more affordable models this year, instead of building a new cheaper vehicle platform [7][8] - Commercial-scale production of a robotaxi is planned for 2026 at its Texas factory [7][8] Financial Performance and Cost Management - Tesla's fourth-quarter profit margin from vehicle sales, excluding regulatory credits, fell to 13.59% from 17.05% in the prior three-month period [10] - Revenue for the October-December quarter was $25.71 billion, below estimates of $27.27 billion [10] - Costs of goods sold hit their lowest level ever in the fourth quarter, at less than $35,000, driven by lower raw material costs [4] - The company has been able to execute on cost reduction, which cushioned the impact of lower profit margins [5] Market and Competitive Landscape - Tesla's market value has soared with the election of President Trump, who is a close ally of CEO Elon Musk [2][6] - The company's annual deliveries dropped for the first time last year due to higher borrowing costs and intense competition [11] - Rivals such as China's BYD, as well as European manufacturers BMW and Volkswagen, have launched new cheaper models to capture market share [11] - Tesla expects the vehicle business to return to growth this year after a small drop in 2024, with vehicle sales projected to grow 20% to 30% in 2025 [12] Investor Sentiment and Future Prospects - Shares rose 5% as Tesla announced cost-cutting measures and progress on new vehicle development [2] - Investors are optimistic about the potential of Tesla's full self-driving (FSD) technology and robotaxi services in the next couple of years [9] - Prospects of self-driving technology and a forecast for a 50% jump in deployments at the energy storage unit are encouraging investors [13] - Tesla's recommitment to delivering new vehicles in the first half of the year and reduced costs have been positively received by shareholders [4]

WASHINGTON — Meta has agreed to pay $25 million to settle a lawsuit filed by President Donald Trump against the company after it suspended his accounts following the Jan. 6, 2021, attack on the Capitol, according to three people familiar with the matter.It’s the latest instance of a large corporation settling litigation with the president, who has threatened retribution on his critics and rivals, and comes as Meta and its CEO, Mark Zuckerberg, have joined other large technology companies in trying to ingrat ...

Core Viewpoint - Amazon is facing a proposed class action lawsuit for allegedly tracking consumers' movements through their cellphones without consent and selling the collected data [1][4]. Group 1: Allegations Against Amazon - The lawsuit claims that Amazon gained "backdoor access" to consumers' phones by providing app developers with the Amazon Ads SDK, which allowed extensive data collection [1][3]. - It is alleged that Amazon collected significant amounts of timestamped geolocation data, revealing sensitive personal information such as religious affiliations, sexual orientations, and health concerns [2][3]. - The complaint states that Amazon has effectively "fingerprinted" consumers and correlated vast amounts of personal information without their knowledge or consent [3]. Group 2: Legal Context and Implications - The lawsuit was filed by Felix Kolotinsky in San Mateo, California, who claims his personal information was collected through the "Speedtest by Ookla" app [3][4]. - The complaint alleges violations of California's penal law and unauthorized computer access laws, seeking unspecified damages for millions of Californians [4]. - This case is part of a broader trend where individuals and regulators are increasingly concerned about companies profiting from data collected without consent [5].

Core Viewpoint - Spirit Airlines has rejected a bid from Frontier Group, stating it was not favorable for the low-cost carrier and anticipates exiting bankruptcy in the first quarter [1][6]. Group 1: Bid Details - Frontier's bid included an offer of $400 million in debt and a 19% stake in Frontier for Spirit shareholders, implying a total consideration of approximately $2.16 billion [1][2]. - Spirit's rejection was based on the belief that the proposal would not provide the anticipated shareholder value and raised concerns regarding the timing and successful completion of the deal [4]. Group 2: Industry Context - Ultra-low-cost carriers have faced challenges since the pandemic, as travelers increasingly prefer to pay for a more comfortable travel experience [2]. - Analysts suggest that a successful merger with Frontier could create a nationwide discount airline capable of attracting price-sensitive passengers [3]. Group 3: Company Background - Spirit Airlines declared bankruptcy in November due to ongoing financial losses, unsuccessful merger attempts, and high levels of debt [6]. - The airline had previously been close to a merger deal with Frontier in 2022, but negotiations were halted in favor of JetBlue, which ultimately won the bidding war [5].

Core Viewpoint - Target is facing backlash from the LGBTQ+ community after announcing a rollback of its diversity, equity, and inclusion (DEI) programs, which includes ending its three-year DEI goals and the Racial Equity Action and Change (REACH) initiatives by 2025 [1][5]. Group 1: Target's DEI Program Changes - Target will implement changes to its "Belonging at the Bullseye" strategy, including the termination of its DEI goals and REACH initiatives [1]. - The decision to scale back DEI programs follows increased scrutiny and pressure on such initiatives from various sectors [6]. Group 2: Community Response - The Twin Cities Pride Festival organizers have decided to exclude Target from this year's festivities due to the company's rollback of DEI initiatives, marking a significant community response [2][3]. - The decision to part ways with Target as a sponsor means the festival will lose $50,000 in funding [3]. Group 3: Broader Industry Trends - Target joins a growing list of companies, including Amazon, Lowe's, Meta, McDonald's, American Airlines, and Boeing, that have scaled back or eliminated their DEI efforts amid scrutiny [6]. - In contrast, some companies like Costco have maintained their commitment to DEI policies despite activist pressure [7].

President Trump suggested on Monday that Microsoft is in talks to acquire TikTok and that he hopes a “bidding war” breaks out over the contentious Chinese-owned social media app. “I would say, yes,” Trump told reporters aboard Air Force One when asked if the software giant was bidding to buy TikTok from its Chinese parent company ByteDance. Trump, 78, has previously revealed that there is “great interest in TikTok” and that he has “spoken to many people” about a possible deal that would allow the app to ope ...

Compensation and Bonuses - Goldman Sachs CEO David Solomon received a $39 million compensation package for 2024, a 26% increase from the previous year [2] - Solomon is also eligible for an $80 million golden handcuffs bonus if he remains with the company for another five years [3] - The bank's chief operating officer John Waldron was also awarded a five-year $80 million golden handcuffs deal [6] - Rank-and-file employees expressed dissatisfaction with their bonuses, with one veteran banker stating their bonus was significantly lower than the typical 50% of base pay [2] - A first-year associate received a $135,000 bonus on top of a $200,000 base salary, expressing disappointment given the company's strong earnings [7] - Senior partners at Goldman Sachs can earn eight-figure bonuses annually alongside a roughly $950,000 salary [10] Employee Sentiment and Protests - Employees at Goldman Sachs are frustrated and angry over the disparity between executive compensation and their own payouts [5] - Some staffers clocked out early on January 16 to protest the skimpy payouts, with anger reaching a boiling point before Solomon's compensation was disclosed [4] - The backlash over bonuses spilled over onto the Wall Street Oasis forum, where employees vented their frustrations [7] - One equities trader described Goldman as a "cult" that strings employees along with promises of promotions or money [3] Financial Performance - Goldman Sachs posted its best earnings in three years, with profits soaring 67% to $14 billion in 2023 [6] - The bank's overall compensation ratio dropped to 32% in 2023 from 35% in 2022, indicating a smaller percentage of net revenues going to employees [9] - The strong earnings were partly attributed to a revival in dealmaking activity on Wall Street following a post-COVID slump [6] Industry Context - JPMorgan CEO Jamie Dimon was paid $39 million last year and received a $50 million retention bonus in 2021 [4] - Wall Street bonuses were forecast to increase by 7.4% overall, according to a report by New York State Comptroller Thomas DiNapoli [11] - Wells Fargo analyst Mike Mayo noted that Goldman Sachs is a best-in-class global investment bank and a microcosm of the industry, where some employees are paid and promoted while others earn and churn [12] Employee Lifestyle and Culture - Goldman Sachs employees typically work 80-hour weeks and are rewarded with performance-related bonuses [10] - Despite the discontent over bonuses, some employees celebrated with champagne purchases at a popular wine store near the Goldman Sachs headquarters [13] - The Spaniard, a popular bar near Goldman Sachs, saw an increase in patrons as some bankers drowned their sorrows over their annual payouts [14]

US chip giant Nvidia suffered a record wipeout on Monday after Chinese startup DeepSeek upended the tech sector — and the rout cost its CEO Jensen Huang more than $20 billion in a single day.DeepSeek said it built its new AI model in just two months for less than $6 million – a fraction of the training costs of its US rivals – and without access to Nvidia’s powerful, pricey computer chips, which are subject to the US government’s export controls.Shares of Nvidia plunged as much as 18% as the market reckoned ...

Market Reaction to DeepSeek's Emergence - Big technology stocks including Nvidia, Microsoft, Meta, and Tesla tumbled in premarket trading due to concerns over DeepSeek, a Chinese AI startup threatening US dominance in AI [1] - Nvidia shares plunged nearly 12% following news about DeepSeek's capabilities [1] - Microsoft shares dropped 4.1%, Meta fell 1.7%, and Tesla declined by more than 2.7% in premarket trading [4] - European chipmakers ASML and ASM International saw sharp declines of 8.9% and 13.6%, respectively [4] - Nasdaq futures tumbled 2.3%, S&P 500 futures declined 1.3%, and Dow Jones Industrial Average futures decreased by 0.9% before the opening bell [5][8] DeepSeek's Impact on AI Industry - DeepSeek, a China-based AI startup, launched a free, open-source large-language model in December, causing industry disruption [1] - The startup was developed in just two months at a cost of under $6 million, contrasting with the billions typically spent by Western tech giants on AI research [2] - DeepSeek's rapid progress has raised questions about the efficiency and cost-effectiveness of AI research investments by leading US firms [6] - Analysts note that DeepSeek's model appears highly competitive despite having less computational power than US hyperscalers [6] US AI Leadership and Strategic Investments - US companies maintain a significant advantage in AI due to access to the most sophisticated chips, despite DeepSeek's technological strides [7] - The US government is reinforcing AI leadership, with President Trump announcing a $500 billion AI initiative called Stargate [9] - The Stargate project involves top firms such as OpenAI, Oracle, and SoftBank, highlighting the strategic importance of advanced chips in maintaining US competitiveness in AI [10] Semiconductor Industry Impact - The emergence of DeepSeek triggered a global sell-off in chip companies, particularly impacting semiconductor firms [3] - Nvidia, a key player in AI-driven chip design, saw its shares plummet 11.8% before the market opened on Monday [3][11]