The most important news form last week
Meta announced test of AI ads tool
Meta Platforms has announced plans to test artificial intelligence-powered ad tools that can create content such as image backgrounds and variations of written text. These generative AI products will be tested by a select group of advertisers in a testing playground called the AI Sandbox. Meta executives revealed that they would not disclose the number of advertisers who would have access to the space initially. However, they stated that access would be granted to more advertisers in July.
Microsoft is the largest cybersecurity player
According to CFRA Research, Microsoft's cybersecurity business is worth at least 20 billion USD. The company is the largest cybersecurity player and is gaining market share. Microsoft's CEO, Satya Nadella, stated in late January 2023 that security revenue had exceeded 20 billion USD in the previous 12 months, implying 33% growth from the previous year and a 50% increase from the year before. Microsoft's security offerings are among the most comprehensive on the market.
Rivian raised the prices
Rivian Automotive's CEO believes the company can maintain high prices for its first lines of electric pickup trucks and SUVs, even as competition in the market grows. This could be a necessary move if the company wants to turn a profit. However, some consider this approach risky, as Rivian will soon face more competition from rivals, including Tesla, which is cutting prices to boost demand, and traditional automakers that are introducing lower-priced electric vehicle models.
Airbnb could have a slow summer
Although the travel industry in the United States has largely remained insulated from inflation, the CEO of Airbnb, Brian Chesky, noted during a post-earnings call that the North American market, particularly the United States, is currently the most sensitive to pricing. In a similar vein, Hilton Worldwide Holdings Inc also signalled last month that the pent-up travel demand that had helped it boost its annual profit outlook might decrease in the second half of 2023.
Amazon is expanding
Amazon plans to expand in Europe by opening new warehouses and hiring more employees, despite facing pressure to cut costs globally and lay off some workers due to squeezed spending. The company has already invested €142 billion in Europe since 2010 and its growth in the region was boosted by COVID-19 lockdowns. Vice president of global operations for North America and Europe, said Amazon's footprint in Europe would increase from more than 70 fulfilment centres currently.
Movement of Amazon in the last five years. (Source: Trading Economics) *
* Past performance is no guarantee of future results.
Sources: Investing, Trading Economics, Reuters
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