All articles tagged with #big tech
Fortune reports Dan Ives of Wedbush says AI-related stocks are in a six-to-12 month air pocket, with Microsoft and Meta being treated like bear-market names that can’t be owned; hyperscalers are spending up to $700 billion on AI data centers, costs are expected to slow and monetization may take years, raising the risk of a 10-20% market correction amid high valuations and geopolitical uncertainty.
Stocks bounced as the S&P 500 recovered, oil held near $70 amid easing Iran–US tensions, and hyperscalers (Amazon, Microsoft, Meta, Alphabet) rebounded after last week’s declines. Cybersecurity names Palo Alto Networks and CrowdStrike led gains (about 7% and 6% respectively), with chatter that Chinese AI systems can uncover vulnerabilities—pressuring demand for cyber defense stocks. Honeywell also completed its split, adding 220 new shares to the CNBC Investing Club portfolio.
A discussion on rising concerns about data-center reliability and whether major technology companies can address and restore confidence in the infrastructure that powers modern tech.
Australia will double the penalties for social media platforms that fail to keep under-16s off their services, increasing the maximum fine from 49.5 million to 99 million AUD and granting the eSafety Commissioner stronger enforcement powers. The government cites ongoing evasion via older accounts, fake profiles, and private browsers, and is targeting Facebook, Instagram, Snapchat, TikTok, and YouTube. Critics say evidence on the ban’s effectiveness is mixed, while regulators insist platforms must take reasonable steps, including age checks and possible government ID verification, to protect minors.
U.S. stocks rose on Micron’s blowout results and AI optimism, with the Dow up about 1.4% and the S&P 500 roughly 0.5% higher, while the Nasdaq slipped about 0.2% as investors rotated out of Big Tech after Qualcomm forecast stronger data-center revenue; May PCE inflation rose 4.1% year over year (0.4% month over month, core 3.4%), keeping the debate over Fed rate moves alive. Oil prices eased, global chip stocks rallied on Micron’s strength, and headlines around Nvidia, Alibaba and AI developments added mixed signals to the market backdrop.
A zero-sum battle for TV attention is reshaping entertainment as Hollywood studios pursue megadeals and tech platforms push into streaming and content creation. Fox’s $22 billion Roku deal and David Ellison’s $111 billion bid to fuse Paramount Skydance with Warner Bros. Discovery show the scale, while YouTube dominates TV watch time, Instagram tests episodic longform video on TV, and AI partnerships threaten to redefine production and creative control.
US stocks closed mixed with the Dow up modestly while the S&P 500 and Nasdaq fell, led by a tech selloff in names like Alphabet, Amazon, Meta and Nvidia; SpaceX declined for the third straight day, while Micron jumped ahead of its quarterly results. Investors also weighed ongoing US-Iran peace talks and awaited inflation data.
AI expansion is increasingly financed with debt rather than cash flow, as Nvidia’s $25B bond sale signals a broader shift and major players like Alphabet, Oracle, Meta, and Amazon tap the bond market to fund data-center growth. Global AI-linked debt is projected to surge toward hundreds of billions by 2026. The Fed’s hawkish tilt under Warsh means higher rates and wider credit spreads, raising refinancing risk even for strong credits as the financing cycle for AI accelerates.
Fortune reports OpenAI's 2025 financials show a $21 billion operating loss on roughly $13 billion in revenue, driven by costs of $34 billion (R&D $19.18B, COGS $7.5B, S&M $5.73B, G&A $1.57B). Loss from operations was $20.92B, though the loss ratio improved to about $1.60 in expenses per dollar of revenue in 2025 from $2.37 in 2024. With the company planning an IPO, executives might pursue revenue growth or price increases while potentially trimming R&D and marketing—though cutting R&D risks eroding AI leadership. The figures come from leaked copies obtained by Ed Zitron and the Financial Times and are a preview of what the S-1 might reveal.
Salesforce’s U.S. severance plan pays based on level, tenure, and age: senior directors get 13 weeks, senior managers and below 9 weeks, with an extra four weeks for employees 60+, plus three more weeks per year of service. The total cap is 26 weeks (30 weeks for those 60+), and COBRA coverage lasts six months (12 months for those 60+). The package can total up to 30 weeks, a generosity level larger than recent offers from Oracle, Amazon, and Block, as the company conducts layoffs amid AI-related concerns.
Europe is accelerating a shift away from US Big Tech toward open-source and local alternatives, driven by digital-sovereignty concerns and policy tensions with the US. The trend spans EU plans to rely less on US tech, France switching to Qwant and LaSuite, Euro-Office, and governments moving from Microsoft Office/Google Docs, with projects like Eurosky and other national data strategies. While US firms still dominate Europe’s tech stack, officials say the aim is greater data control and independence, not a total break.
Alphabet raised about $84.75 billion in a record equity offering—the largest ever and its first in more than two decades—with $35 billion sold publicly, $40 billion in secondary sale over time, and a $10 billion Berkshire Hathaway private placement after strong demand from more than 75 investors. The deal, along with new debt taking Alphabet’s total to about $100 billion, is aimed at funding a massive AI infrastructure push—including roughly $190 billion of AI-related capex this year—while cloud and hyperscaler spending remains a focus; Berkshire will hold about $32 billion of Alphabet stock, making it one of Berkshire’s largest public stakes. CFO Anat Ashkenazi described the move as boosting Alphabet’s financial flexibility.
Iran says it will charge license fees to Big Tech for using undersea cables that pass beneath the Strait of Hormuz, naming Meta, Google, Amazon and Microsoft; the move could push US firms to pursue overland fiber routes and Gulf-led projects as wartime disruptions and repair delays threaten the chokepoint.
U.S. stocks closed at new record highs as AI and tech names—especially memory chips and big-tech leaders—led the rally, with Alphabet, Meta, Nvidia and Micron among the movers while Tower Semiconductor and Nebius posted notable gains on AI-infrastructure optimism; Ford also rallied on bullish AI-related activity, even as producer prices unexpectedly jumped.
A Meta data scientist with a physics PhD explains how rigorous research habits, skepticism, and strong communication from academia translate to data work, the challenge of translating academia to corporate roles, and the value of curiosity and upskilling in Big Tech.