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| 1 | | Google has launched an AI-powered search engine to compete with Microsoft's Bing, incorporating AI advances and generative AI to provide AI-generated summaries. It will be launched initially in the U.S. before expanding internationally in the upcoming months. More: - The AI-driven search tool, upgrades to the Bard chatbot, and products like Gmail and Google Docs are all powered by Google's large language AI model, PaLM 2.
- The search engine delivers follow-up questions in a conversational form that doesn't duplicate context and adds links to online sources for accountability.
- The technology giant hopes to give people access to information from reputable brands and organizations, while advertising will continue to be a significant component of the search results.
- Users can create AI-generated papers, emails, photos, and tables using Google's latest AI releases, included in Google Docs, Gmail, and slideshows.
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| 2 | | Airbnb reported $1.8B in revenue for Q1, a 20% increase YoY, surpassing analysts' expectations and generating a profit of $117M. But the vacation rental company's mixed outlook for Q2 2023, expecting a slight decline in average daily rates and slower growth in nights booked, caused investor concern. More: - Airbnb's gross booking value rose 19% to $20.4B, showing that people are willing to invest in travel, says WSJ.
- The company reported $146M in interest income due to higher rates and investments in money-market funds; additionally, Airbnb said it bought $2B of its stock over the past nine months.
- Airbnb predicted revenues between $2.35B and $2.45B for the second quarter of 2023, which aligned with analysts' predictions.
- Despite rising over 50% throughout the year, Airbnb's shares dropped 11% in after-hours trading.
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| 3 | | Despite losing 4 million Disney+ users, Disney's Q2 earnings revealed decreased losses thanks to price increases. The company reported revenue of $21.82B and 157.8 million Disney+ subscriptions, falling short of the expected 163.17 million. More: - Losses from direct-to-consumer operating income came in at $659M instead of the forecast loss of $841M.
- The American multinational's linear TV networks' quarterly revenue, $6.63B, fell by 7%.
- Net income for the quarter was $1.49B, or $0.69 per share, compared to $597M, or $0.26 per share, a year prior.
- Disney's parks, experiences, and products divisions had a 17% growth in revenue to $7.7B, with theme parks accounting for $5.5B of that total.
Zoom Out: - Disney has experienced production halts due to the Writers Guild of America strike — the first strike of the streaming era, which is already having a significant influence on Hollywood.
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| 4 | | The sale of most of Citigroup's Banamex retail assets to Grupo Mexico for about $7B is about to be finalized. The investment bank and financial services corporation will retain a piece of the unit, and it will have the choice between selling it to Grupo Mexico or putting it up for public sale. More: - Grupo Mexico is a significant infrastructure and copper mining firm, but its venture into banking has alarmed investors, causing shares to fall by the most in almost four months.
- Investors have been keeping a close eye on the status of the divestment as several bidders have been vying for Banamex.
- The purchase may have a short-term negative impact on Citigroup's capital levels, causing the bank to postpone share buybacks planned in previous quarters.
- Banamex's sale fits in with Citigroup CEO Jane Fraser's plan to sell up its overseas consumer businesses and concentrate on institutional products and the U.S. retail market.
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| 5 | | Due to higher costs associated with research and development, Virgin Galactic recorded a net loss of $159.4M for Q1 2023, compared to $93.1M a year ago. At the close of the quarter, the business had $874M in cash and securities, and it had plans to go into space for the first time in two years later this month. More: - In contrast to a $77M loss a year earlier, Virgin Galactic reported an adjusted EBITDA loss of $140M.
- Virgin Galactic's shares witnessed an almost 1% fall in after-hours trading after increasing by 17% since the year's beginning.
- CEO Michael Colglazier emphasized the advancements made in creating its Delta-class spacecraft.
- A crew of company personnel will be launched into space in May to check their work before the first commercial voyage.
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| 6 | | SoftBank is close to selling Fortress Investment Group to Abu Dhabi's Mubadala for $3B, which would give it another $50B in assets under management. The sovereign wealth fund has been increasing the number of credit investments and already owns a small portion of Fortress. More: - As part of its development plan for asset management, SoftBank paid $3.3B in 2017 to take control of Fortress.
- Yoshimitsu Goto, CFO of SoftBank, has been pressing for the sale to help lower debt as the company is anticipated to post losses for multiple years.
- The sale would also be in line with Masayoshi Son, the CEO of SoftBank, who wants to take advantage of the demand for credit investment techniques.
- Being a part of Mubadala, a firm with roughly $300B in assets under management and a substantial impact in the world of private finance, could be strategically advantageous for Fortress.
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| 7 | | Quick Hits: - Mark Cuban-backed Collars & Co. changes the menswear game with lightweight, 4-way stretch polos and dress shirts. Use code INSIDE for 15% off your first order.*
- In six weeks, a yet-unnamed person will become the new CEO of Twitter, with Elon Musk transitioning to Executive Chairman and CTO, overseeing product, software, and systems operations.
- Spain's Telefonica Q1 net profit dropped 58% YoY due to the inability to increase prices in line with costs.
- Adidas plans to donate proceeds from Yeezy shoe sales to help remedy the negative impact caused by its collaboration with Kanye West.
- China's April imports sharply declined, and exports grew slower, indicating weak domestic demand and putting pressure on the struggling economy.
- Axios Pro delivers smarter, faster news and analysis for your industry, designed to make you a better decision-maker. Start your free trial now.*
*This is a sponsored listing. | | | |
| Upcoming Events | | MAY
17 | | Monthly Meditation guided by Nicholas Whitaker | | | | | | | MAY
23 | | Advance your security program and win more deals by joining this Vanta webinar | | | | | | | MAY
25 | | Inside.com Book Club - Zero To One by Peter Thiel | | | | | | * This is a sponsored event | | | |
Term of the Day Economies of scale : Economies of scale are the financial benefits that businesses experience when their production costs fall as their output volume rises. Question of the Week What's the most bizarre work-related dream you've ever had? Join the conversation Today's Knowledge Hub Is Brought To You By |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
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