Category: business

From Datakalab’s now-defunct website: “Datakalab is a French technology company that develops computer image analysis algorithms to measure flows in public space. The images are instantly transformed into anonymized statistical data processed locally in 100ms. Datakalab does not store any images or personal data and only keeps statistical data. Datakalab products are built according to the principle of ‘Privacy by Design.'”

While neither Apple nor DatakaLab have acknowledged the acquisition, Challenges says that the deal was reported to the European Commission this month. The report says that Datakalab’s two founders did not join Apple, but multiple other employees did make the jump. Datakalab also held multiple patents related to AI compression and vision technology. The acquisition makes perfect sense given Apple’s rumored ambitions to run its upcoming AI-related features in iOS 18 “entirely on device.”

Netflix also noted that it expects paid net additions to be lower in the second quarter compared to the first quarter “due to typical seasonality.” Its second-quarter revenue forecast of $9.49 billion was just shy of Wall Street’s estimate of $9.54 billion Shares of the company fell around 4% in extended trading. Netflix reported first-quarter net income of $2.33 billion, or $5.28 per share, versus $1.30 billion, or $2.88 per share, in the prior-year period. The company posted revenue of $9.37 billion for the quarter, up from $8.16 billion in the year-ago quarter.

Turner explained those features as exemplifying the sort of simplification VMware by Broadcom thinks is needed to make Cloud Foundation easier to implement. A bigger release Turner hopes will debut in early 2025 — though he would commit to only a H1 launch — will be a “unified” release in which more of VCF is better integrated. Today, Turner admitted, VMware customers may have implemented vSphere and the Aria management suite, but might still need or choose discrete storage for each. Future VCF releases will increasingly unify the products so that silos aren’t needed. Prashanth Shenoy, vice president for VMware by Broadcom’s cloud platform, infrastructure, and solutions marketing, told The Register the release will be called VCF 9 and will represent “the fullest expression of Broadcom’s vision for product integration.” “When customers deploy VCF there are seams — when they deploy networking and storage, they feel like they do not have a unified developer or operator experience,” Shenoy admitted. VCF 9 will tidy that sort of thing up and make the process “seamless.” Buyers can also expect improved log file analysis, the ability to acquire templates from a marketplace and adopt them as PaaS, and plenty more.

Turner and Shenoy told The Register that the two releases are hoped to make VCF adoption easier, and by doing so demonstrate the value of the bundle. Today, they argue, would-be hybrid cloud adopters using VCF are in reality integrating siloed products — which doesn’t prove the value of the vStack well. VCF 9’s planned integrations, they argue, should demonstrate the power of the stack and the wisdom of Broadcom’s decision to create a VMware unit dedicated to VCF. That team, they explained, means developers for each of the bundle’s components work together on a unified experience, rather than to create their own product. It may also demonstrate the value of VMware by Broadcom’s new licenses – which some users have complained are considerably more expensive now that subscriptions are required, and products are only sold in bundles. Sylvain Cazard, president of Broadcom Software for Asia-Pacific, told The Register that complaints about higher prices are unwarranted since customers using at least two components of VMware’s flagship Cloud Foundation will end up paying less. He also noted that the new pricing includes support, which VMware didn’t include previously.

Its enforcement also calls out Amazon for using deceptive design to encourage shoppers to click buy by presenting misleading information about product availability and delivery windows — such as by listing how many items were in stock to be purchased and providing a countdown clock to order an item in order to get it on a particular delivery date. Its investigation found Amazon does not always meet these deadlines for orders, nor ship products immediately as they may be out of stock despite claims to the contrary shown to consumers. “Amazon treats the data it provides on availability and shipping date as indicative but the way it is presented does not indicate this,” the UOKiK noted, adding: “Consumers can only find out about this in the terms of sale on the platform.”

While Amazon does offer a delivery guarantee — offering a refund if items do not ship within the stated time — the authority found it failed to provide consumers with information about the rules of this service before placing an order. It only offers details at the order summary stage. And then only “if the consumer decides to read the subsequent links specifying delivery details.” Shoppers who did not follow the link to read more may not have been aware of their right to apply for and receive a refund from Amazon if there is a delay in shipment. It also found the e-commerce giant failed to provide information about the “Delivery Guarantee” in the purchase confirmation sent to shoppers. Amazon said it will appeal the fine. The company also writes: “Fast and reliable delivery across a wide selection of products is a top priority for us, and Amazon.pl has millions of items available with fast and free Prime delivery. Since launching Amazon.pl in 2021, we have continuously invested and worked hard to provide customers with a clear, reliable delivery promise at check out, and while the vast majority of our deliveries arrive on time, customers can contact us in the rare event that they experience a delay or order cancellation, and we will make it right.

Over the last year, we have collaborated with the Office of Competition and Consumer Protection (UOKiK), and proposed multiple voluntary amendments to continue to improve the customer experience on Amazon.pl. We strictly follow legal standards in all countries where we operate and we strongly disagree with the assessment and penalty issued by the UOKiK. We will appeal this decision.”

In the U.S., the report finds that the decline in capital investment following the 2008 financial crisis has resulted in a $4,500 lower per-capita GDP in 2022 than it would have if pre-crisis trends had continued. Rapid advances in manufacturing technology, especially for electronics, petered out in the same time period, subtracting another $5,000 from per-capita GDP. “Digitization was much discussed as the main candidate to rev up productivity again, but its impact failed to spread beyond” the tech sector, the authors write. The authors are optimistic that a confluence of factors will make the years ahead different.

The rise in global interest rates and inflation are evidence of stronger global demand. Many countries are experiencing labor shortages that may incentivize more productivity-enhancing investment. And artificial intelligence and related technologies create big opportunities. “Inflationary pressure and rising interest rates could be signs that we are leaving behind secular stagnation and entering an era of higher demand and investment,” the report finds. “In corporate boardrooms around the world right now, there’s a tremendous amount of conversation associated with [generative] AI, and I think there’s a broad acknowledgment that this could very much transform productivity at the company level,” Olivia White, a McKinsey senior partner and co-author of the report, tells Axios. “Another thing that’s happening right now is the conversation about labor. Labor markets in all advanced economies, and the U.S. is really sort of top of the heap, are very, very tight right now. So there’s a lot of conversation around what do we do to make the people that we have as productive as they can be?”

The posted roles are more than just a talent vacuum sucking up resumes from applicants. They are also a tool for shaping perception inside and outside of the company. More than 40% of hiring managers said they list jobs they aren’t actively trying to fill to give the impression that the company is growing. A similar share said the job listings are made to motivate employees, while 34% said the jobs are posted to placate overworked staff who may be hoping for additional help to be brought on.

“Ghost jobs are everywhere,” says Geoffrey Scott, senior content manager and hiring manager at Resume Genius, a US company that helps workers design their resumes. “We discovered a massive 1.7 million potential ghost job openings on LinkedIn just in the US,” says Scott. In the UK, StandOut CV, a London-based career resources company, found more than a third of job listings in 2023 were ghost jobs, defined as listings posted for more than 30 days. “Experts caution not every posting that seems like a ghost job is one,” notes the report. “Still, whether these postings are ghost jobs — or simply look and feel like them — the result is similar. Jobseekers end up discouraged and burnt out.”

Scherr, 59, joined Hertz two years ago as the company was emerging from bankruptcy and putting a big focus on EVs during that time. Hertz soon discovered that EVs are more expensive to maintain than they had initially thought. Scherr reportedly told investors that Hertz’s profits experienced a $348 million loss, which he blamed EVs for. In January, Hertz announced its plan to offload 20,000 electric vehicles from its U.S. fleet throughout 2024, and switch back to gas cars.

In November, the Associated Press reported on a Consumer Reports survey that found EVs from the 2021 to 2023 model years are significantly less reliable than gasoline-powered vehicles. A whopping eighty percent less reliable, according to the AP, particularly with battery and charging systems, as well as fit issues with body panels and interiors. Car dealers and manufacturers are reportedly also struggling to sell EVs despite using deep discounts and promotional tactics. In 2021, Hertz announced plans to order 100,000 Tesla vehicles by the end of 2022. It later said it would buy “up to” 65,000 Polestar EVs for its rental fleet over the next five years.

But the senior investing editor for Kiplinger.com argues that retail investors “may want to hold tight before rushing out to buy the Reddit IPO.”
While IPO stocks tend to have strong first-day showings, returns for the first year are generally weak, says the team of analysts at Trivariate Research, a market research firm based in New York. And since 2020, “the average IPO has lagged its industry average by 30% over the subsequent three years following its first closing price…”

Other commenters have noted that Reddit’s allotment of shares to select Redditors could lower demand on the first day of trading, which would work against any IPO pop.

“Over the past few years, there have been a bunch of IPOs in the U.S. in which overhyped names enjoyed flashy stock-market debuts only to drop sharply soon after,” notes the Street.
Notable examples include Coinbase, which plummeted by almost 90% after its debut, Robinhood, still down 53% since its IPO, and Rivian, down over 91% since its debut. However, it’s crucial to note that all of these IPOs occurred in 2021 amid market euphoria fueled by low interest rates, significant economic stimulus, and the lingering effects of the Covid-19 pandemic. Although the current macroeconomic landscape differs from three years ago, valuations of tech and growth stocks remain stretched.

Kiplingers.com concludes it “boils down to your own personal investing goals and risk tolerance. If you do decide to buy Reddit stock when it first begins trading, do so in a small amount that you can afford to lose.”

But they also cite analysis from David Trainer, CEO of New Constructs, a research firm powered by artificial intelligence. “Reddit’s IPO marks the return of the junk IPO,” Trainer wrote in Forbes. “[The valuation] implies that Reddit will grow its user base to 26 times current levels, which would be nearly five times the size of [Snapchat-maker] Snap, and a highly unlikely feat. Reddit looks overvalued, and we think investors should pass on this IPO.”
Trainer writes:
[T]he company has never been profitable and should not be a publicly traded company… I think the company may never monetize its platform without angering its users and the entire premise of Reddit is user-generated content. This business model is inescapably built on a catch-22: make money or please users… Reddit looks overvalued, and I think investors should pass on this IPO.

Buyers and analysts told the site Marketing Brew “that they see the platform as nice-to-have, but that it is not an essential part of their media plans, like Meta or Google are.”

“They’ve always been solidly in the second or third tier of social networks,” alongside Snap, Pinterest, and X, Brian Wieser, a former GroupM exec who’s now author of the industry newsletter Madison and Wall, told Marketing Brew.

Yet Trainer notes that “98% of Reddit’s revenue in 2023 came from third-party advertising on the site and 28% of all revenue came from ten customers,” and “Reddit’s cost of revenue, sales & marketing, general & administrative, and research & development costs were 117% of revenue in 2023.”

Trainer concludes “Reddit is nowhere near breakeven. Reddit is an unprofitable social media company fighting for users.”

Bloomberg adds that the subreddit r/WallStreetBets “has threatened to bet against the stock, with many people noting that the company still loses money two decades into its existence. (Reddit lost $90.8 million last year, down from $158.6 million the year before.)”

Some have complained that the invitation to invest fails to make up for the unpaid labor they’ve invested making the site work… In 2021 the platform’s WallStreetBets forum ignited a meme-stock frenzy, propelling skyward the stocks of nostalgic but struggling companies like GameStop Corp. and AMC Entertainment Holdings Inc. and sending shockwaves through the financial industry… When it goes public, the platform that invented meme stocks runs the risk of becoming one itself.

Reddit noted the possibility as a risk in its IPO filing. “Given the broad awareness and brand recognition of Reddit, including as a result of the popularity of r/wallstreetbets among retail investors,” the company warned that its stock could “experience extreme volatility … which could cause you to lose all or part of your investment if you are unable to sell your shares at or above the initial offering price.”
Users on WallStreetBets got a kick out of the fact that the company listed the forum as a risk factor, posting about it with a sly smiling emoji…

Meanwhile, reports that marketers are infiltrating subreddits have been confirmed. Over 200 businesses have “integrated Reddit Pro into their digital strategies,” reports Search Engine Land, including “well-known names such as Taco Bell, the NFL, and The Wall Street Journal…
“During the initial alpha testing phase with approximately 20 businesses, Reddit reported its Pro partners, on average, generated 11 additional posts and comments per month.”

Heat shocks are characterized by their severe impact on health, energy grids, and increased fire risks, influencing companies with multiple locations to reconsider their geographical distribution of operations. Despite this trend, states like Arizona and Nevada, which have some of the highest heat-related death tolls, continue to experience rapid business expansion. Experts believe that factors such as labor pool, taxes, and regulations still outweigh environmental climate risks when it comes to business site selection. But heat associated deaths are on the rise. In the Phoenix area alone, it experienced 425 heat related deaths in 2022 and a similar number in 2023 — record highs for this region.
The study suggests that the implications of climate change on business operations are becoming more apparent. Companies are beginning to evaluate climate risks as part of their regular risk assessment process.