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| Hey Insiders, Amazon is in hot water as the FTC sued the retail giant on Wednesday. That story, plus looking at FedEx's Q4 2023 earnings and Zola launching its own baby registry site, are focuses of today's newsletter. Read on for today's Knowledge Hub and more! Christopher
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| 1 | | The Federal Trade Commission sued Amazon today, alleging that the company purposefully worked for years to enroll clients in Amazon Prime without their consent and made it difficult for them to cancel their subscriptions. The FTC's complaint claims that Amazon duped millions of customers into enrolling in Prime. More: - Amazon Prime is a $139 annual subscription service that offers customers features like free shipping on select items, access to Prime Video and Prime Music, and more.
- More than 200 million members worldwide are subscribers.
- "Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said in a statement.
- The investigation into these claims began in March 2021, and the FTC seeks monetary civil penalties.
- They have not shared how much they are seeking.
- The lawsuit claims that Amazon used "manipulative, coercive, or deceptive user interface designs known as dark patterns" to hide the fact that Amazon Prime was automatically renewing a subscription.
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What the numbers say: FedEx saw a slight dip in its revenue YoY, going from $24.3B to $21.9B. Following the COVID-19 pandemic, FedEx saw its revenue skyrocket in 2021 and grow again in 2022. But the following year's Q4, the numbers went down. Relevance: FedEx announced its Q4 2023 earnings yesterday and suffered in the stock market from a weak fiscal year outlook. The company had seen a 34% rise in shares prior to the earnings announcement but experienced a 3% drop in premarket trading on Wednesday. FedEx Corp. president and CEO Raj Subramaniam highlighted that the team was adapting to a more global focus, saying, "The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment." Other data: Rival company UPS also saw a decline in revenue from 2022 to 2023, showing that the shipping service companies are on a similar path. UPS went from $24.3B in Q1 2022 to $22.9B in Q1 2023. | | | |
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| 3 | | SoftBank founder and chief executive Masayoshi Son committed publicly that his company would become a leader in AI technology. At the company's annual shareholder meeting, Son said that the company would move toward focusing on AI to get it out of its months-long financial slide. More: - "We are ready to shift to 'offense mode,'" Son said. "I want SoftBank to lead the AI revolution."
- He claimed SoftBank will fit in "as an architect to build the future of humankind."
- The company's Vision Funds have lost countless amounts in recent months, stemming from the decimation of start-up valuations.
- Son claimed that SoftBank amassed more than $35B in cash while in "defense mode" and that the company is ready to invest it.
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| 4 | | The U.S. Department of Agriculture has approved the sale of cell-cultured chicken for two companies. Upside Foods and Good Meat, a subsidiary of Eat Just, received the approval to sell lab-grown protein. More: - Cultured meat is made by putting stem cells from the fat or muscle of an animal into a culture medium that will feed them and allow them to grow. The medium is then put into a bioreactor that supports the growth and churns out a product that looks and tastes like traditional meat.
- The two startups received the approval, and besides the U.S., only Singapore has cleared the sale of cell-cultured meat.
- The U.S. Food and Drug Administration issued its approval months ago, saying each company's lab-grown chicken is safe for human consumption.
- Chef Jose Andres has placed the first order to sell Good Meat's cultured chicken and serve it at an undisclosed restaurant in Washington, D.C.
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| 5 | | The sovereign wealth fund of Singapore, GIC, has moved forward with dealmaking in the U.S., looking to grow beyond China. The fund has invested in venture capital funds and technology companies. More: - GIC's assets are estimated by analysts to be worth more than $700B, and it has told executives this year that it is looking to increase its exposure to U.S.-focused funds.
- This speaks well to the resilience of the U.S.'s top technology companies, as last year saw mass sell-offs.
- AI companies in the U.S. are seen as a smart bet for some wealth funds to invest in.
- Global investors are rethinking their investing strategies in China over concerns about geopolitical tensions with the U.S.
- According to data by Refinitiv, GIC struck 63 deals with U.S.-based private companies in 2022 and 2021, up 24 from 2020 and 2019.
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| 6 | | Zola, the online wedding services platform, is looking to cash in on the baby registry market void left by BuyBuy Baby's uncertain future. Zola Baby will launch in September and include an online baby registry for expecting parents. More: - It will also feature cash funds to pay for diapers, babysitters, or school tuition.
- Parents will also be allowed to decide when their gifts will be shipped to their homes, as Zola's co-chief executive officer Rachel Jarrett highlighted "religious and cultural reasons why people may not want the baby gifts before the baby arrives."
- This all comes as the uncertainty of BuyBuy Baby's fate amid the bankrupt filing of its parent company, Bed Bath & Beyond.
- Rival registry company Babylist Inc. says its plans to bid next week on BuyBuy Baby's digital assets, including the brand's trademark and domain.
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- Peloton saw its shares tumble after Wolfe Research LLC downgraded it to a sell-equivalent.
- A Church & Dwight executive was docked $200,000 in stock awards for deleting texts from his personal phone that the company wanted to review for a legal matter.
- Novo Nordisk sues clinics selling Ozempic and Wegovy knockoffs.
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 | Freelance Editor | | Christopher Hachey is a freelance writer and editor based in the New York City area. He has spent most of the past 15 years in newsrooms covering all kinds of topics like sports, tech, business, finance, and commerce. He's now returning to his broadcast journalism roots by diving into podcasting news. Reach out to him at chris@inside.com | | This newsletter was edited by Aaron Crutchfield | |
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