Category: business

“Zoom has a fundamental flaw — it has needed to spend heavily to keep hold of market share. Spending to cling onto, rather than grow, market share is never a good place to be and was a sign of trouble ahead,” Hargreaves Lansdown equity analyst Sophie Lund-Yates said. The company’s operating expenses surged 56% in the third quarter as it spent more on product development and marketing. Its adjusted operating margin shrank to 34.6% from 39.1% a year earlier.

The new facility will be used to manufacture 3nm chips, according to the paper, which cites anonymous sources “familiar with the expansion plans.” The scale of this project is expected to be comparable to the existing plant. Reports last year suggested that TSMC was already considering constructing up to five additional semiconductor factories in Arizona, on top of the one just completed, which is not scheduled to start up production of chips until 2024. The move to build another plant comes despite the Taiwanese chip behemoth announcing recently that it was cutting back on its capital investment budget in the face of a market slowdown which led to TSMC predicting that Q4 revenue growth will likely be flat. However, the fact that TSMC is still considering further facilities in Arizona could be seen as vindication that the US CHIPS Act, which includes subsidies and other incentives for semiconductor companies like TSMC to build on American soil, is having the desired effect.

There’s 30 pages of rules…

Under proposed rules that were quietly and unexpectedly made public on Friday — which will, among other things, prohibit hosts from renting out an “entire registered dwelling unit” — Airbnb hosts will be required to submit diagrams of their apartments as well as proof that their listings are permanent residences. Hosts also will be required to list the “full legal name of all permanent occupants of the dwelling” as well as their relationship to the host….

If hosts fail to comply, they can be fined up to $5,000 under the new rules, while Airbnb and other platforms are required to verify the rental on its systems and could be on the hook for a $1,500 fine per violation. Last year, the city council passed the registration law, but little was known about the details and requirements, which will become effective Jan. 9 and enforced by May 9….

Among the requirements, said the source, is one that bars hosts from putting locks on doors that separate the guest from the host, directing that “a registered host shall not allow a rentee to have exclusive access to a separate room within a dwelling” and specifying that, for example, “providing the rentee with a key to lock the door when such rentee is not in the dwelling is prohibited….”

It’s the latest salvo in the fraught relationship between New York City and Airbnb, which has long pushed back on the city’s efforts to regulate the industry. Meanwhile the city blames Airbnb, in part, for its housing shortage.

Thanks to Slashdot reader quonset for submitting the story!

“Successful applicants get $25,000 each plus 10 weeks of structured mentorship plus continued access to the more than 1200-member OrangeDAO network. In exchange, OrangeDAO and Press Start get to invest in the resulting companies, if any, produced by the class.” Cringley likens it to the American tech startup accelerator Y Combinator — but on steroids.

Cringley also explains why he thinks this “middle class VC” model “will replicate and grow unconstrained,” ultimately exporting itself from Silicon Valley to cities around the world.

There are many DAOs around and hardly anybody understands them or knows what they are good for. Mainly they have seemed to be involved in the NFT market. But OrangeDAO is different. It has 1200+ members and every one of those members is a graduate of the Y Combinator startup accelerator. They are verified Y Combinator company founders, so they’ve all had similar entrepreneurial experiences and see business much the same way as a result. OrangeDAO seems to have big plans and to make those plans happen in August the DAO, itself, raised $80 million in venture capital, with their first use of that capital being these Fellowships.

I think this will change forever venture capital and the world economy.

It represents a new stage in the evolution of venture capital. In many senses it is the democratization of VC….

The DAO members all have similar backgrounds, similar values, and similar risk tolerances. THERE ARE MORE OF THEM, so they can do bigger deals. And — here’s the important bit — THEY ARE ALL Y COMBINATOR-EDUCATED and connected globally through the blockchain. They not only know many of the same things, they have a sense of where this knowledge comes from and why it is useful…. In the YC-based DAO we have people who want the next generation of entrepreneurs to be even better-educated. It’s not some egalitarian goal, either: they see it as key to success for the whole thing.

Smart people with good ideas will self-identify, be funded at a subsistence level to allow them to develop those ideas and prove their worth, then they can participate on a truly level playing field for the first time…. Gone is the Tycoon, gone is the professional VC who doesn’t understand his tech, gone soon will be the angels (subsumed into the DAO model), and gone for the most part are the asshole VCs whom entrepreneurs grow to hate (not all of them, but a lot).

Done correctly, this model is essentially Meritocratic VC. If the idea is good, the market is ready, and the people know what they are doing, the capital will be there.

How it works: Companies with more than four employees must post a salary range for any open role that’s performed in the city — or could be performed in the city. Violators could ultimately be fined up to $250,000 — though a first offense just gets a warning.

Reality check: It’s a pretty squishy requirement. The law requires only that salary ranges be in “good faith” — and there’s no penalty for paying someone outside of the range posted. It will be difficult for enforcement officials to prove a salary range is in bad faith, Bloom says. “The low-hanging fruit will be [going after] employers that don’t post any range whatsoever.” Many of the ranges posted online now are pretty wide. A senior analyst role advertised on the Macy’s jobs site is listed as paying between $85,320 and $142,080 a year. A senior podcast producer role at the WSJ advertises an “NYC pay range” of $50,000 – $180,000. The wide ranges could be particularly reasonable if these roles can be performed remotely, as some companies adjust pay according to location.

The company reported a 4 percent drop in revenue for its third quarter — to $27.7 billion, down from $29 billion a year earlier. Net income was $4.4 billion, down 52 percent from a year earlier. Spending soared by 19 percent from a year earlier. The company’s metaverse investments remained troubled. Meta said its Reality Labs division, which is responsible for the virtual reality and augmented reality efforts that are central to the metaverse, had lost $3.7 billion compared with $2.6 billion a year earlier. It said operating losses for the division would grow “significantly” next year. For the current quarter, Meta forecast revenue of between $30 billion and $32.5 billion, which would be down from a year ago. The company’s shares fell more than 11 percent in after-hours trading. In a statement, Mr. Zuckerberg, Meta’s founder and chief executive, acknowledged “near-term challenges on revenue.” But he added that “the fundamentals are there for a return to stronger revenue growth” and that he was “approaching 2023 with a focus on prioritization and efficiency.”

In addition to the new battery plant, Honda on Tuesday said it plans to invest $700 million to retool several of its existing auto and powertrain plants for production of EVs. The Japanese automaker expects to begin production and sales of EVs in North America in 2026. Honda has plans to phase out traditional internal combustion engines and exclusively offer battery-electric and fuel cell electric vehicles by 2040 in North America. It’s part of the company’s plans to achieve carbon neutrality by 2050.

Intel Chief Executive Officer Pat Gelsinger is trying to capitalize on Jerusalem-based Mobileye, acquired in 2017 for $15 billion, with a partial spinoff of its shares. Mobileye makes chips for cameras and drive-assistance features, and is seen as a prized asset as the car industry races toward fully automated vehicles. Now with about 3,100 employees, Mobileye has collected data from 8.6 billion miles on the road from eight testing sites globally, according to its filing. The company says its technology leads in the race to shift the automotive industry away from human drivers. It’s shipped 117 million units of its EyeQ product.

Mobileye has been a particularly bright spot for Intel and has consistently grown faster than its parent. As of July, it had $774 million of cash and cash equivalents. In the 12 months ended Dec. 25, it had a net loss of $75 million on revenue of $1.39 billion. The company said it plans to use proceeds from the IPO to pay down debt and for working capital and general corporate purposes.

American manufacturers cut roughly 1.36 million jobs from February to April of 2020, as Covid-19 shut down much of the economy. As of August this year, manufacturers had added back about 1.43 million jobs, a net gain of 67,000 workers above pre pandemic levels. Data suggest that the rebound is largely a product of the unique circumstances of the pandemic recession and recovery. Covid-19 crimped global supply chains, making domestic manufacturing more attractive to some companies. Federal stimulus spending helped to power a shift in Americans’ buying habits away from services like travel and restaurants and toward goods like cars and sofas, helping domestic factory production — and with it, job growth — to bounce back much faster than it did in the previous two recessions.

In recessions over the last half century, factories have typically laid off a greater share of workers than other employers in the economy, and they have been slower to add jobs back in recoveries. Often, companies have used those economic inflection points to accelerate their pace of outsourcing jobs to foreign countries, where wages are significantly lower, and to invest in technology that replaces human workers. […] This time was different. Factory layoffs roughly matched those in the services sector in the depth of the pandemic recession. Economists attribute that break in the trend to many U.S. manufacturers being deemed “essential” during pandemic lockdowns, and the ensuing surge in demand for their products by Americans. Manufacturing jobs quickly rebounded in the spring of 2020, then began to climb at a much faster pace than has been typical for factory job creation in recent decades. Since June 2020, under both Mr. Trump and Mr. Biden, factories have added more than 30,000 jobs a month.
“Sectors that hemorrhaged employment in recent recessions have fared much better in this recovery,” reports the NYT. They include furniture makers, textile mills, paper products companies and computer equipment makers.

“Mr. Biden has pushed a variety of legislative initiatives to boost domestic manufacturing, including direct spending on infrastructure, tax credits and other subsidies for companies like battery makers and semiconductor factories, and new federal procurement requirements that benefit manufacturers located in the United States,” adds the report — all of which could help encourage factory job growth in the coming months and years.

Furthermore, the rising tensions between Washington and Beijing over trade and technology could encourage more companies to leave China for the United States, particularly cutting-edge industries like clean energy and advanced computing.